Takeaways from Kazatomprom Presentation at the World Nuclear Fuel Market Conference

June 6, 2018

I was sent these notes by a person in the uranium market. That means they will be more bullish in nature but I did want to share them as I have been receiving a number of question and comments on the uranium sector. I will be including a little more coverage on the sector as news develops.

Here are the comments from the Kazatomprom presentation at the recent world Nuclear Fuel Market conference… I am not supporting or refuting these comments. You all can do that 😉

1. Yellow Cake fund will remove 8 million lbs of supply from the near term market. Utilities should take note of the great interest taken by Hedge Funds in uranium, including physical uranium purchases. Very similar to 2005-2007 market conditions.

2. 2017 Kazakhstan production cut was 8% lower than planned output and 5.5% lower than 2016 level.

3. 2018 Kazakhstan production will fall to 56.2mm lbs. down from the 2017 actual level of 60.8mm lbs. All Kazakh mines and JV’s have been consulted and are contributing to the cuts in output.

4. Kazakhs are clearly committed to production constraint and market discipline.

    Jun 07, 2018 07:31 AM

    Uranium Weekly – Kazakh curtailment and Yellow Cake IPO
    June 5, 2018

    “Ux Consulting’s (UxC) spot uranium price indicator increased by $0.60/lb this week to $23.35/lb (+2.64%). Two developments had a positive impact on the uranium
    market over the past week, namely announced supply cuts from Kazakhstan and a planned uranium holding company IPO. The Trump administration also announced that it is seeking ways to support nuclear power in the United States.”

    “Late last week, the Kazakh Energy Minister announced that the country’s uranium production target for 2018 has been lowered to 21,600 tU, down ~6% from the
    original target of 23,000 tonnes”

    “Yellow Cake IPO planned for July in London. Yellow Cake is seeking to raise between $150M to $200M, which it will use to buy 8.1mm pounds of U3O8, according to news reports. The company has already struck a deal with Kazatomprom, the world’s largest uranium producer, to buy up to $170M of the metal at a 7.7% discount to the current spot price. In addition, it has an option to purchase a further $100M of uranium each year from the company for the next nine years”

    Jun 07, 2018 07:45 AM

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