Lotus Resources readies Malawi uranium mine restart as supply crunch looms

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 […]

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