We will see “rapid price movement” in the uranium market in 2022, says the head of the Australian uranium company best placed to enter production in the coming years. Boss Energy (ASX:BOE) managing director Duncan Craib, whose company is aiming to redevelop the mothballed $107 million Honeymoon uranium mine in South Australia, said despite modest price activity so far this year catalysts were emerging for a price run in 2022.
The long depressed commodity is fetching US$43.75/lb on the spot market according to Numerco, down on the US$51/lb it hit last year driven by investment purchases off the spot market by the Sprott Physical Uranium Trust.
But with prices up around 40% since the start of 2021, spot and term prices are on track to rise to the US$60/lb level widely regarded as the level to incentivise new production.
“I think this year you’re going to see some rapid price movements that’ll […]
- Do contribute something to the discussion
- Do post factual information, analysis and your view on company valuations
- Do disclose if you have an interest in a security
- Do not make low-content posts, unsubstantiated ramps or untruthful/misleading statements
- Do not complain about a post unless you have reported it first, and not on the forum.
- Do not post financial advice
- Do not advertise or post sponsored content