Ross McElroy: Uranium Demand Continues to Grow

TL;DR

Fission Uranium CEO, Ross McElroy, discusses the current state of the uranium market and predicts a potential uptick in prices in 2018 due to the shutting down of major uranium mines. He advises investors to research companies with strong projects and cash reserves for potential investment opportunities.

Transcript

I'm the clover shot with investing news network at PDAC 2018 on day three and sitting with me today is Ross McElroy from fission uranium good afternoon how are you today I'm doing well perfect so how is the conference been for you so far it's been good it's been busy you know we're very busy a lot of meetings I think there's some good buzz in the i... Read More

Key Insights

• 👶 The uranium market is expected to see increased demand due to the construction of new reactors, particularly in developing countries.
• 😘 The lowest cost producers are dialing back production, highlighting the challenges faced by the uranium market.
• 🥺 The shutdown of major uranium mines, such as the Carter River mine, could potentially lead to an increase in uranium prices later in 2018.
• 💪 Investing in well-managed companies with strong projects, cash reserves, and a clear path forward could yield favorable returns in the uranium sector.
• 📰 Fission Uranium has achieved significant milestones, including the addition of new high-grade mineralized zones to their resource and upcoming pre-feasibility studies.
• 😑 The pre-feasibility studies will be a major milestone for Fission Uranium, signaling progress towards eventual production.
• 💦 The company is currently focused on engineering-focused work, including geotechnical drilling and metallurgical studies.

Questions & Answers

Q: What do you expect from the uranium market in 2018?

Although the uranium market has been depressed with low prices, the increasing demand for uranium, particularly from developing countries like China, suggests a potential uptick in prices. The shutdown of major uranium mines, like the Carter River mine, could further contribute to this price increase.

Q: Do you see the price of uranium going up in 2018?

While it is difficult to predict short-term price movements, the shutdown of the Carter River mine, which supplies around 10% of the global uranium consumption, could potentially lead to an increase in uranium prices. However, it might take several months before the impact is significant.

Q: What advice do you have for uranium investors?

McElroy advises uranium investors to consider companies with strong projects, cash reserves, and a clear path forward. He believes that being positioned in the market early is crucial, as the sector can experience rapid changes. Doing thorough research and investing in well-managed companies now could yield significant returns in the future.

Q: Can you provide some key highlights of Fission Uranium's recent news on the Patterson Lake South project?

Fission Uranium recently released a resource estimate update, which included the addition of three new high-grade mineralized zones to their resource. This resulted in a 30% increase in overall resources, an 8% increase in indicated resources, and nearly double the inferred resources.

Summary & Key Takeaways

• Ross McElroy highlights the increasing demand for uranium due to the construction of new reactors, particularly in developing countries, such as China.

• Despite the high demand, the uranium market has been depressed with low prices, causing the lowest cost producers to reduce production.

• McElroy suggests that the shutdown of major uranium mines, such as the Carter River mine in Saskatchewan, could potentially lead to an increase in uranium prices later in the year.

• He advises uranium investors to look for companies with strong projects, cash reserves, and a clear path forward, as he believes a turnaround in the sector is imminent.