Uranium Week: Little Joy For Miners

This story features TORO ENERGY LIMITED. For more info SHARE ANALYSIS: TOE

By Greg Peel

For several weeks the spot uranium market has been in limbo, awaiting the conclusion of a handful of term market supply deals to the tune of 6.5mlbs U3O8. Some deals were concluded last week, and industry consultant TradeTech’s weekly spot price indicator has fallen US40c to US$36.60/lb.

The spot price was actually weaker on a daily basis earlier in the week as sellers tired of waiting, but the announcements prompted sellers to pull back their offers again and hence the weekly price drop was not as bad as it might have been.

A total of 750,000lbs of U308 equivalent changed hands in seven transactions last week.

The term market saw eight transactions all up concluded last week, totalling 3.6mlbs. TradeTech’s mid-term price indicator has fallen US50c to US$39.50/lb while the consultant’s long-term indicator remains unchanged at US$44.00/lb.

The positive news for the market last week came from Japan, where Kyushu Electric Co is preparing the start up of the second of its Sendai units, representing the second of the post-Fukushima reactor restarts.

The negative news came from Australia’s Toro Energy ((TOE)), which has become the latest uranium hopeful to postpone its plans until such time as uranium prices improve. Toro’s Wiluna project was the first uranium mine to receive approval form the Western Australian government and was set to commence in 2017, with drilling having begun in 2014. But Toro has decided to put the mine on hold for now, citing uneconomic pricing.

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