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.
Numis analyst Justin Chan tells Proactive things could be changing.
”What we’re starting to see is the world’s largest producer starting to take a longer term view of the market and starting to realise they’ve been flooding the market and driving spot prices down.”
Chan added: ”One of Berkeley [Energia]‘s significant advantages is that they’re one of a few near-term development opportunities – so a recovery in price and a near-term cycle would mean a lot for Berkeley.”
”A lot of the other developers in the market won’t be in position to come into production before mid-2020s”.
Story by ProactiveInvestors