home Production, U Bannerman hopeful on uranium price

Bannerman hopeful on uranium price

Perth – Uranium developer Bannerman Resources is optimistic about the future of the uranium price, with CEO Brandon Munro telling delegates at the fifteenth yearly Africa Downunder conference, in Perth, that the current decade-low prices are unsustainable.

“The uranium spot price is languishing at a decade low price of $20/lb,” Munro said on Thursday.

“While all commodity markets are cyclical, and it is said that the best remedy for low prices is low prices, uranium has unique dynamics that point to an abrupt return to higher prices when its time comes,” he said.

Munro noted that owing to the long-term nature of nuclear power plants and the accompanying buying timeframes, uranium cycles were longer than most other commodities.

“We have been in a long-term bear market since the collapse of the Soviet Union.

“The recovery in the sector – bolstered by nuclear power’s clean, baseload attributes – has been coming since 2006, although the global financial crisis and then the Fukushima accident stalled the recovery.

“Because of the magnitude and depth of this bear market gestation period, we expect the next bull to be born large and to grow quickly.

“So now is a compelling time in the cycle for high-growth investment.”

Bannerman is currently developing its Etango uranium project, in Namibia, which was expected to deliver average yearly production of 7.2-million pounds of uranium oxide over an initial mine life of 15.7 years.

The project is estimated to cost some $870-million to develop. 

Source: Miningweekly.com

Leave a Reply

Your email address will not be published.