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.