Bullish signals give uranium producers hope for market turnaround

A mothballed uranium mine sits in the middle of the Utah desert Oct. 27, 2017, outside Ticaboo, Utah. North American uranium producers have responded to the spike in uranium spot prices with cautious optimism, hoping longer-term contracts from nuclear power utilities follow. Source: George Frey/Getty Images News via Getty News Uranium producers say nuclear utilities have begun exploring long-term contracts now that a Canadian uranium fund has slurped up much of the excess supply in the spot market.

Yellowcake prices have been low for over a decade since the Fukushima Daiichi reactor accident in Japan made nuclear power a pariah, a situation that boosted existing nuclear plants which could rely on the low-priced spot market to meet their needs. This summer, however, Toronto-based hedge fund Sprott Asset Management LP, a subsidiary of Sprott Inc., took the uranium market by storm, buying up millions of pounds of excess supply of […]

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