Industry Report
April 15, 2016
The Weekly Dig
Haywood Mining Team
Uranium Price Slide Accelerates into Weekend, now Testing 10-Year Lows
§ The uranium spot price has fallen 25.3% in the first 3 ½ months of 2016, posting a worse performance in this short time, than any full-year loss experienced since the Fukushima disaster in March 2011 that led to Japan taking 50 reactors off-line, with only two now operating. Uranium saw three years of back-to-back double-digit percentage losses from 2011-13, but none worse than what we’ve seen thus far in 2016, and at no point since Fukushima, did the spot price dip below $28.00/lb U3O8. In fact, the last time the UxC Weekly Spot Price of uranium was below $28/lb was May 2, 2005; more than 10-years ago. Over the past week, uranium prices have rapidly declined, with the UxC Broker Average Price of uranium closing at $25.69/lb U3O8, Friday night. The prospect of a UxC spot uranium price below $28/lb Monday night now seems highly likely, as are the potential headlines picking up the “10-year low” price point. Uranium continues to be burdened by oversupply as producers fail to curtail production despite very low non-discretionary utility demand currently, exacerbating the global inventory bulge, and placing increasing pressure on uranium price benchmarks. In precious metals, the gold:silver ratio decline the has emerged since the beginning of March, accelerated this week as gold traded down 0.5%, to close at $1,235 per ounce, while silver was up 5.4%, to close at $16.26 per ounce. Platinum (↑1.6%) and Palladium (↑4.6%) were both up for the week, closing at $984 and $569 per ounce, respectively. In the base metals, copper (↑3.2%), nickel (↑4.2%), lead (↑0.8%) and zinc (↑6.2%) prices all rose this week. WTI crude was up this week, closing at $40.36 per barrel Friday, off its intra-week high ahead of the Doha OPEC meeting this weekend.
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