RE:The KremlinRefereshing to hewar that someone else out there thinks like me.
None of this is a coincidence Greenday. They saw the weakness of Obama and his dislike of nuclear power and they exploited it big time. They bought Uranium One right from under the nose of the US Administration...and probably aided and abetted by them.
I think the Kazakhs are doing exactly the same to CCO. I am quite sure the nitwit of a Canadian Prime Minister Mr Trudeau would like to get rid of CCO and I would not be at all surprised if the Kazakhs or Uzbecks or even Russia makes a buyout offer. They already own 60% of world supply. Might as well pick up another 20% on the cheap.
There is still alot of Uranium held up in Japan and they are certainly not going to be contracting any time soon. Buty that will change slowly. So I think it still is influencing the market a little bit but its effect is smaller now.
Good post. Yes can you imagine Mr Trump not having the Uranium to run the US submarine fleet or the giant nuclear powered aircraft carriers. That just is not going to happen. So expect some sort of punitive action against Kazakhstan to level the playing field.
Malcolm
Greenday wrote: The media narrative that weak uranium prices are the result of Fukushima is beginning to run hollow. The accident occured nearly 7 years ago and the oversupplied uranium market should have cleared well before now.
EF and URE's contention is that uranium prices are artifically low and that it raises national security concerns for the USA. It might not be a coincidence that the Russians bought Uranium One in what is now proving out to be in scandalous circumstances. It might not be a coincidence that the Kazaks steadily increased production into a market that was already oversupplied due to Fukushima. It's very possible that the Kremlin is behind these events. The Russians may have figured out that supplying urainum to the USA in the Megatons to Megawatts deal and watching the American uranium industry wither away wasn't such a bad deal for them
So is Trump and the Commerce Department going to sit by idly and watch what remains of the US nuclear industry go under? Are they going to watch 20% of their electrical generation capacity be dominated by Russian influences? Their nuclear submarine fleet compromised? Their ballistic missle capabilty compromised? When the Americans impose countervailing duties to raise prices on steel, lumber, and rubber tires - chances are they'll do it on uranium as well.