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Strategies & Market Trends : Dino's Bar & Grill

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To: Goose94 who wrote (15870)	4/25/2016 5:25:32 AM
From: Goose94	Read Replies (1) of 203566

Cameco (CCO-T) has shelved its Rabbit Lake uranium mine in Northern Saskatchewan. Since the start of the year, spot prices for uranium have slipped more than 20 per cent, making the metal one of the worst-performing commodities in global markets. As booming supply has collided with disappointing demand, uranium for immediate delivery has plunged from nearly $35 (U.S.) a pound in January to below $27 (U.S.) now. It hit an 11-year low earlier this month. CCO CEO Tim Gitzel says the oversupplied market makes it vital for Cameco to focus on its lowest-cost operations, such as its Cigar Lake mine, also in Saskatchewan. The decision to shutter Rabbit Lake was prompted by an unexpected surge in output from Cigar Lake, which has costs that are "considerably cheaper" than the smaller Rabbit Lake facility, says Mr. Gitzel. He says it could be restarted if prices were to move "significantly higher." He indicated it would probably take a uranium price above $60 (U.S.) a pound to make new mines in general an attractive proposition. He cannot say when such a price may be reached.

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