TradeTech’s weekly spot uranium price indicator climbed last week for the sixth consecutive session; however, the rise was very modest. Uranium spot prices advanced by just $0.05 to reach $20.25 per lb. The six-week rise has taken uranium prices up just $0.75.
July is typically a very quiet month for uranium buying interest; therefore, we are unlikely to see any significant moves in the coming weeks.
Last week, according to TradeTech, there were only two transactions reported in term markets. 6mlbs U3O8 equivalent changed hands, and TradeTech’s term price indicators remained at $24.45/lb (mid) and $34.00/lb (long).
In company news, Uranium One (TSE:UUU) confirmed that its subsidiary Mantra Tanzania has applied to suspend the Mkuju River project in Tanzania due to depressed uranium prices. Uranium One, an international mining company of Russian state nuclear energy corporation Rosatom, said its subsidiary Mantra Tanzania applied to suspend the project in December last year.
The request to suspend the project is purely a result of depressed uranium prices, according to the company. Commenting on the request, it said: “Mining in this depressed environment will have no benefit to the people of the United Republic of Tanzania, or the Company, as the project financials make it infeasible to commence such mining at current price levels.” The company added that it hopes to restart operations once uranium prices stabilize. Its request still awaits government approval.
In December, when Mantra Tanzania made this request, uranium prices were around a 17-year low. While they have since recovered a bit, they are nowhere near the level they need to be at for most uranium miners to profit.