Lotus Resources readies Malawi uranium mine restart as supply crunch looms

Lotus Resources estimates it needs about US$50 million (A$64.3 million) to get the mothballed Kayelekera mine back into production. The rule of thumb is that mining stocks soar when the underlying commodity sees a substantial price increase.

In recent months, the silver, tin and copper stocks have behaved that way.

Most ASX uranium stocks have seen price boosts in early 2021 — but the spot price of uranium has remained weak. The first week of March saw the spot reported at US$27.30 per pound (A$35.24/lb).

The difference in the uranium stocks’ case is that investors seem to be buying into the story that there is a shortage looming just over the horizon.There seems little doubt that a substantial crunch is coming up: more nuclear reactors are being built and planned, global mining output is largely in stall mode, China and India are racing to build more nuclear power stations, while the US […]

Click here to view original web page at smallcaps.com.au

About the author: StockMan

Please remember:

The information provided here is for general knowledge and educational purposes only.
It is not intended to be a substitute for professional financial advice.
Every individual's financial situation is unique, and what works for one person may not work for another.
Before making any investment or financial decisions, you should always consult with a qualified financial advisor who understands your specific circumstances and goals.

Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, should never be acted upon. Please be aware that any information posted on this site should not be considered to be financial advice and i am not a financial advisor.