Uranium is on the move.
So says Georges Lequime, manager of the TB Amati Strategic Metals Fund .
Recent strength has been due, says Lequime, to “accelerated decarbonisation initiatives and the emergence of financial players in the uranium spot market.”
In consequence over the past three years spot uranium has risen by 120% over the past three years, with what he calls ‘term’ prices up by 60%.It’s no coincidence that the price rise also follows years of underinvestment in the primary supply of uranium.“A supply deficit is forecast to continue for a few years, which is being exploited by financial players trying to soak up as much supply on the spot market, in an attempt to establish a more realistic incentive price for new supply coming onto the market,” says Lequime.“In addition, the West is facing a real threat of a bifurcated world, where the continued source of cheap uranium is no […]
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