22 Nov 2016
“In our view, the current spot price reflects short term oversupply with the largest factor being the growth in Kazakh spot production,” said Chan.
Numis is getting bullish on uranium again following a new marketing initiative from the Kazakh government.
Kazatomprom, the Kazakh-state uranium producer, is the largest producer in the world accounting for 39% of global mine production in 2015.
A strategy of rapid production increases and spot sales enabled the company to make tremendous market share gains, but at the expense of prices globally that have suffered due to oversupply.
But things might be changing suggests Justin Chan, an analyst at the broker.
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