The uranium market has always been a volatile one, and the world is still at rock bottom with hopes that it will climb back to a regular pace of functioning soon in the future. The volatility in the market was relatively high at the beginning of the year. The costs have risen from a 13 -year low. The market is over-supplied; however, it is still relatively low if you take its price into account. The pricing is not based on the fundamentals, and the sentiments towards the market are generally negative. Any price under 20 is treated as entirely irrational as even the best mine globally is not viable economically at those levels.
David Cates is the President and the CEO of Denison Mines Corp and Uranium Participation Corp. He is a qualified Chartered Professional Accountant and holds a Master of Accounting and a B.A-degrees. He played a predominant role, a Chief Financial Officer, in the company acquisitions and mergers. He was the leader of the Rockgate Capital Corp and International Enexco Ltd purchase. He is also a lawyer in personal injury in the USA.
In 2008, he joined Denison and occupied the Director, Taxation, before being appointed Chief Financial Officer. Before he joined the Company, he served and held positions at Kinross Gold Corp and PwC LLP, focusing on the resource industry.
The uranium market is hard to speculate today
According to him, figuring out the uranium market is a harrowing ordeal. It is pretty thin, and there are many factors that one should take into consideration to understand it today. There was an organic bounce right off the $18 levels in the last rally. The KazAtomProm announcement displayed how irrational the costs of uranium have become. Therefore, some speculators had specific price expectations; however, the utilities failed to continue purchases.
From the mining company’s perspective, the prices of uranium stocks doubled. The pace can move quickly whenever there are shifts in costs. This is the second opportunity to arrive at these levels.
Developments of Denison Mines
He offers an update on Denison Mines, stating that they are well-capitalized when raising funds in February. The Company has a fairly ambitious program for drilling for the year, and more updates will be provided at the end. He also provides insights into some other important projects that the Company is dealing with.
According to David Cates, he thinks and given the current scenario that the price of uranium should rise from here. The present cost is meager even though there is an oversupply of uranium. However, the scenario will keep changing in the coming few years. Japan has already purchased some reactors online. This is undoubtedly a second opportunity to buy uranium where prices are really at their rock bottom now. When it comes to KazAtomProm, they are now busy establishing their own sales division in the field and focused on bringing about a change in the market too.
