Cameco's Gitzel Says Uranium Deficit May Loom After End of Warhead Accord: report
Cameco Corp. (CCO.TO), the world's largest uranium producer, said some investors underestimate the potential for supply shortfalls to spur higher prices for the nuclear fuel, according to a Bloomberg report.
Disruptions in mine production, the difficulty faced by development companies in raising funds for new mining projects, and the end of a Russian deal to supply uranium from scrapped atomic warheads may help create a supply deficit, Chief Executive Officer Tim Gitzel reportedly said in an interview.
Cameco closed Friday at $19.37, +0.34 or 1.79%, taking it away from a year low $17.25.
According to Bloomberg, uranium prices have slumped 24% since a magnitude-9 earthquake and tsunami struck Japan on March 11, causing a partial meltdown at Tokyo Electric Power Co.'s Fukushima Dai-Ichi nuclear plant. The crisis at Fukushima led to Germany's declaration in May that it would close its reactors by 2022. Cameco in August cut its full-year global uranium demand estimate to 175 million pounds (79,400 metric tons) from 180 million pounds.
Investors are too caught up in a "post-Fukushima attitude," Gitzel reportedly said.
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