FinancialNewsMedia.com News Commentary
PALM BEACH, Fla., Aug. 16, 2022 /PRNewswire/ -- The Bank of America appears to be bullish on the future of uranium spot prices The rising support for nuclear energy and tight supply could see uranium spot prices return to US$70/lb by 2023, according to Bank of America (BoA). In a recent article in Market Index, they said: "Bank of America forecasts uranium spot prices to rise to US$70/lb by 2023. Increased uranium purchases from financial market participants often correlates to higher prices. Loss of Russian supplies and Diablo Canyon nuclear plant extension could be bullish catalysts... "We think uranium prices should continue a measured increase, peaking around US$70/lb in 2023e, vs. spot at US$49.5/lb. However, any loss of Russian supplies would make us more bullish," said BoA analysts last Friday. It continued: "In 2021, imports from Russia and Kazakhstan hit an all-time high of 22.9m lbs or 49% of total deliveries. "Given Russia's invasion of Ukraine, we wonder if this might not swing back in favour of US allies (Australia, Canada, etc.)," the analysts said. Uranium spot markets became an increasingly crowded space last year thanks to financial market participants such as Sprott's Physical Uranium Trust. According to BoA, US utility spot market purchases fell to 19% of 2021 total purchases, compared to 24% in 2020." Active mining companies in the markets this week include Traction Uranium Corp. (OTCQB: TRCTF) (CSE: TRAC), Baselode Energy Corp. (OTCQB: BSENF) (TSXV: FIND), Uranium Energy Corp (NYSE: UEC), Cameco Corporation (NYSE: CCJ) (TSX: CCO), Denison Mines Corp. (NYSE American: DNN) (TSX: DML).
Market Index added: "This is interesting as a decline in utility spot market activity is often correlated with higher prices. It is also positive for producers that can help fill the gap via new supply contracts," the bank said. Despite the bullish backdrop, BoA does not expect a "2003-2007 style super-bull market", where prices rallied from US$10 to US$140. Analysts said that US utilities companies, which account for around 28% of global uranium consumption, are less complacent today than in 2003. BoA also has its eyes on California's Diablo Canyon nuclear plant, which is scheduled to shut down in 2024. California's governor, Gavin Newsom has expressed interest in extending the life of the state's only nuclear plant, which accounts for nearly 10% of the state's total energy production. The Diablo plant is excluded from BoA demand forecasts and an extension could raise 2025e global demand by 1.2m lbs or 1.0%."
Traction Uranium Corp. (OTCQB: TRCTF) (CSE: TRAC) BREAKING NEWS: Traction Uranium and UGreenco Energy Announce Option Agreement for Key Lake South Property - Traction Uranium Corp. (the "Company" or "Traction") is pleased to announce that it has entered into a property option agreement (the "Option Agreement") with UGreenco Energy Corp. (the "Vendor") dated August 15th, 2022 (the "Effective Date"), pursuant to which the Company has been granted the right to acquire up to a 75% interest in and to the Key Lake South Property, which consists of a series of mineral disposition parcels located in Athabasca Basin, Northern Saskatchewan, Canada (the "Property").
The Key Lake South Uranium Project is located approximately 6 kilometers to the southwest of the Key Lake uranium mill and in close vicinity to modern uranium mining facilities and highway transportation in northern Saskatchewan. Geologically, it sits at the southeastern edge of the Proterozoic Athabasca Basin ? home of the world's largest and highest grade uranium deposits and operations. Recent discovery of Tripple R and Arrow deposits has demonstrated further potential of high-grade uranium at the edge of the basin.
Lester Esteban, Chief Executive Officer, stated "An extraordinary uranium anomaly was outlined in the early 70's known as the "Hot" Island and was believed to be transported from a source in the northeast, which led to the discovery of the Key Lake uranium deposit, the world's largest high-grade uranium deposit mined with open-pit producing a total of 209.8 million pounds of uranium at the average grade of 2.32% U3O8 between 1983 and 2002. Advanced airborne geophysical surveys from both government and industry during the 2000's depict a coincidence between this surface anomaly and underlying structures supporting a thesis that this anomaly is in-situ controlled by structures rather than erratically transported by glacier. Since the discovery of the Key Lake deposit, this area has been underexplored and we are looking forward to getting to work to unlock its potential for an unconformity-type uranium deposit." CONTINUED... Read this full press release and more news for Traction Uranium at: https://www.financialnewsmedia.com/news-trac/
Other recent developments in the mining industry of note include:
Cameco Corporation (NYSE: CCJ) (TSX: CCO) recently reported its consolidated financial and operating results for the second quarter ended June 30, 2022 in accordance with International Financial Reporting Standards (IFRS).
"Our results reflect the very deliberate execution of our strategy of full-cycle value capture. And, we are benefiting from higher average realized prices in both our uranium sales and our fuel services sales as the market continues to transition and geopolitics continue to highlight concentration of supply concerns," said Tim Gitzel, Cameco's president and CEO.
"In the drive for a clean energy profile, policy makers and business leaders must recognize that there is a need to balance affordability and security. Too much focus on intermittent, weather dependent, renewable energy, has left some jurisdictions struggling with power shortages and spiking energy prices, or dependence on Russian energy supplies. The good news for us is that many are turning to nuclear ? which provides safe, reliable, affordable, carbon-free baseload electricity while also offering energy security and independence.
Baselode Energy Corp. (OTCQB: BSENF) (TSXV: FIND) recently announced the final sixteen drill hole results from the now-complete 2022 diamond drill program (the "Program") on the ACKIO high-grade uranium discovery ("ACKIO"), Hook project ("Hook"), Athabasca Basin area (the "Basin"), northern Saskatchewan.
"Our success at ACKIO this year has exceeded our expectations. We've grown ACKIO very quickly with over 22,000 metres having been drilled since February. The final drill holes of the Program continued to intersect near-surface mineralization, expanding the footprint of known mineralization at shallow depths. The discovery of uranium mineralization just 25 metres below surface puts ACKIO into a rare category with near-surface open pit mined Athabasca uranium deposits. Our objective now is to incorporate all the data we have collected this year, including recently flown airborne geophysical surveys, to refine our geological models, to determine mineralized vectors at ACKIO, and to assess the required drill hole density for completing a mineral resource estimate for ACKIO. Once complete we plan to return to ACKIO with an aggressive drill campaign to discover more uranium mineralization," said James Sykes, CEO, President and Director of Baselode.
Denison Mines Corp. (NYSE American: DNN) (TSX: DML) has made a further proposal (an "Acquisition Proposal") to acquire all of the issued and outstanding shares of UEX Corporation ("UEX"). Under the terms of the Acquisition Proposal, UEX shareholders would receive 0.32 shares of Denison in exchange for each share of UEX held, which represents an implied purchase price of $0.51 per UEX share, on a spot basis, as of the market close on August 8, 2022. View PDF version.
Denison's Acquisition Proposal represents a 7% premium to the price implied by the amended arrangement agreement between UEX and Uranium Energy Corp. ("UEC") dated August 5, 2022 (the "Amended UEC Agreement") based on the one-day volume weighted average price on August 8, 2022, and a 9% premium to the 20-day volume weighted average price implied by the Amended UEC Agreement.
Uranium Energy Corp. (NYSE American: UEC) and UEX Corporation ("UEX") are pleased to announce that they have entered into a further amending agreement (the "Amending Agreement") to the previously announced arrangement agreement dated June 13, 2022, as amended June 23, 2022 and August 5, 2022, among UEX, UEC and UEC 2022 Acquisition Corp., pursuant to which UEC will acquire all of the issued and outstanding common shares of UEX ("UEX Shares") by way of a statutory plan of arrangement (the "Arrangement") under the Canada Business Corporations Act (the "Transaction").
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