Uranium Price

The price of one lb of U3O8 has jumped $6 from $85 to $91. This came out after the Energy Resources of Australia (ERA) stated that the Ranger operation in the Northern Territory has been flooded by Cyclone George. It appears that, once again, water seems to be the nemesis of the uranium industry. Whether it be too much, or lack there of, it has been a rather persistent problem. These are the types of risk you take when purchasing stocks in mining companies.

It's important to note that just the very preliminary news of this has come out and the amount of damage has not been assessed yet. The ERA is in the process of figuring out how to take care of its customers who have already made orders.

Trade Tech has stated that active supply (amount of U3O8 for sale) this month will be approximately 2 million pounds. Active demand (buyers currently seeking uranium) will be 4.4 million pounds. To give you a look at how big this Ranger operation really was, Trade Tech stated that active demand could double if Ranger can't get back online soon. Side note: Cyclone George is heading inland and dissipating quickly, but they are still expecting heavy rains Sunday and Monday in the Norther Territory.

This is coming harder and faster than I imagined. Once again, we can all laugh at my prediction of $100 /lb of U3O8 as it looks like it will more likely encroach $150 /lb this year. Either way, SXR and Denison, actual producers of the yellow cake, will be great hold as this market pushes on.