The uranium market remains on hold waiting for the right signals.
The signals involve a mixture of the speed and extent of Japanese restarts, a potential supply disruption given the limited number of significant uranium producers, a return to historical levels of long term contracting and/or a geopolitical event. There is rightfully optimism within the industry based on the long term market fundamentals. However, currently there is over supply in the market and it will require patience to see out the market signals. In my mind, the return to long term contracting volumes at the necessary incentive price will be the real signal. I also believe that patience with the current market dynamics is required but will be rewarded in the longer term.
"In my mind, the return to long term contracting volumes at the necessary incentive price will be the real signal."
KPMG in Canada