Markets

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Commodities

Latest Markets Videos

    MTNewswires

    Founded in 1999, MT Newswires (formerly known as Midnight Trader) is a leading provider of original source, multi-asset class, real-time, global financial news and information to most of the largest banks, brokerage firms and professional market data, trading & research applications in North America.

    Learn More