The COVID-19 pandemic continues to negatively impact commodity markets, with prices for metals such as copper, zinc, lead, aluminium and many others falling rapidly since the shuttering of mines and disruption to supply chains around the world. One metal, however, is defiantly bucking the trend.
The spot price for uranium oxide in the past few weeks has risen by 14% to over US$27 per lb., ending a long period locked between US$24 to US$26 per pound.
“On the supply side, several main production centres have either closed, are reaching the end of their lives or are starting to hit lower grade ores at their mines, pushing up spot prices for uranium,” Leigh Curyer, CEO of NexGen Energy
(TSX: NXE; NYSE:NXE), said in a telephone interview. “Also, the higher consumption of nuclear power, which has been growing by around 1% to 2% per year over the last few years, is also putting upward pressure on prices.”
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