Uranium Week: Fifth Week Unchanged

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By Greg Peel

Industry consultant TradeTech reports only two transactions concluded in the spot uranium market last week, and no transactions in term markets, which about sums up the level of excitement in uranium markets as we rapidly approach Christmas.

TradeTech’s weekly price indicator remains stuck at US$36.00/lb for the fifth week running. The consultant’s term price indicators are also unchanged at US$38.50/lb (mid) and US$44.00/lb (long).

As to what is going to drag uranium out of its malaise in 2016 is at this point unclear. There are, however, a handful of utilities with delivery contract tenders out in the term markets looking for settlement.

In corporate news, Australian uranium miner Toro Energy ((TOE)) has signed a heads of agreement with copper-gold producer OZ Minerals ((OZL)) whereby OZ will farm into the nickel potential of Toro’s Wiluna uranium project in Western Australia.

With the Prominent Hill copper-gold mine past the point of maturity and the Caraparteena prospect currently too expensive to pursue at spot metal prices, OZ Minerals has chosen to diversify into nickel as an alternative means of securing future growth, it appears. For Toro, the operational experience and funding provided by OZ will allow the company to concentrate its attention and funding solely on Wiluna’s uranium potential.
 

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