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About half of world's production of uranium has been cut - Haywood

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(Kitco News) - Due to COVID-19 containment measures as well as a slump in most every commodity outside of precious metals, uranium production is down by about 50%.

Haywood Securities added up the numbers after Cameco (TSE: CCO) announced operation suspensions, writing in a note published Tuesday that "the world's largest producers [are] announcing a string of temporary production cuts and/or mine closures amounting to ~50% of global production due to COVID-19."

On Monday, Cameco announced it is extending the temporary production suspension at the Cigar Lake uranium mine in northern Saskatchewan. The uranium giant also announced it was withdrawing guidance.

"The longer major supply sources are disrupted, the better the fundamental structure will be when we emerge from the pandemic as more inventory gets absorbed into the system," wrote Haywood.

According to Business Insider's commodity charts, uranium is trading above $30, a multi-year high. Cameco is up 2% today to $13.41 as of 2:49 EDT.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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