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Media - Special Coverage

Dec 2, 2016 – Surging US Dollar Provides Welcome Safety Net to Non-US Uranium Producers

Nov 30, 2016 – Australia Conference Shifts Focus to Include "Low Emission and Technology Minerals"

Jun 9, 2015 – TradeTech President Treva Klingbiel Presents at World Nuclear Fuel Market Conference in Paris—Right-Sizing

Apr 23, 2015 – TradeTech President Treva Klingbiel Presents at World Nuclear Fuel Cycle Conference in Prague--Socioeconomic Impacts of Uranium Mining Around the World

Dec 2, 2016 - Surging US Dollar Provides Welcome Safety Net to Non-US Uranium Producers
The following is an InFocus piece published in the December 2, 2016 edition of the Nuclear Market Review.

With most commodities priced in US dollars and currently under notable downward price pressure, the consequent weakening of producer currencies provides temporary relief for mining companies, and the uranium industry is no exception. With the steady decline in the uranium spot price, exchange rates have naturally become a hot topic this year.
 
Moreover, the US dollar index surged to a 14-year high in late November amid mounting expectations of US President-elect Donald Trump’s pro-growth policies for 2017. In this article, published in the December 2 issue of TradeTech's "Nuclear Market Review," we take a closer look at what this means for certain uranium producers, including specific implications that upcoming events may have on foreign exchange rates in the near future. [top]

Nov 30, 2016 - Australia Conference Shifts Focus to Include "Low Emission and Technology Minerals"
The "2016 Low Emission and Technology Minerals Conference" was held November 15-16 in Perth, Australia, hosting a wide range of minerals industry experts and government officials. Formerly named the Australian Uranium Conference, the event now includes minerals associated with low-emission power sources, technology, and energy storage. The event was expanded to address growing interest in a mix of minerals, including uranium, which will play key roles in lowering the carbon footprint from current energy resources. The conference focused on the increased demand for battery-related minerals, such as lithium, graphite, vanadium, cobalt, and various rare earths, while maintaining a focus on uranium’s role in a lower carbon future.

In a presentation entitled "Trends, Risks, and Opportunities in the Uranium Market," TradeTech analyst Adam Christopher described the conditions that define the current state of the uranium market, presenting the company's analysis of today’s transitional market environment. While TradeTech views uranium’s positive potential as closely related to the objective competitiveness of nuclear power, Christopher noted that uranium’s perceived value is also tightly correlated to trends in contract cover and inventories. He pointed out specific challenges facing today’s uranium producers, which he said are as adept at risk management as they are at mining uranium.

Christopher then identified several opportunities in the market, which today largely exist in the upside of currently undervalued assets. He also highlighted TradeTech’s analysis of the contracting strategies that producers are using to weather the current price environment. [top]

Jun 9, 2015 - TradeTech President Treva Klingbiel Presents at World Nuclear Fuel Market Conference in Paris—Right-Sizing
During the recent World Nuclear Fuel Market International Conference in Paris, France, TradeTech President Treva Klingbiel participated as a speaker in a session that focused on nuclear fuel cycle industry views on navigating uranium market volatility. Klingbiel’s presentation, entitled “ “right sizing” in today’s uranium market, which unlike downsizing, is about proactive risk management. Klingbiel said that although during the process of right sizing a company may need to take cost-cutting and restructuring steps, true right sizing should be an ongoing process.

“Rightsizing is really about taking a company’s current circumstances and views about future market developments and translating that into a strategic direction,” she explained. Companies actually have a wide range of options or tactical responses to various conditions that they can utilize (Figure 1). The tactics in the lower left areas of Figure 1 are right-sizing tactics, which are performed on an ongoing basis and ideally prevent the need for the tactics in the upper right areas, which are decidedly desperate measures. Klingbiel noted, however, that the uranium market has been forced to take some of the more reactive steps, like cost cutting, restructuring, and consolidation, in order to survive. [top]

Apr 23, 2015 - TradeTech President Treva Klingbiel Presents at World Nuclear Fuel Cycle Conference in Prague--Socioeconomic Impacts of Uranium Mining Around the World
During the recent World Nuclear Fuel Cycle conference in Prague, Czech Republic, TradeTech President Treva Klingbiel provided an overview of the company's analysis of the socioeconomic impact uranium mining, including the costs and benefits, as well as the role socioeconomic costs play in uranium market prices.

Major uranium producers are focused on sustainability goals in the countries where they develop and operate mines. Steps to sustainability includes sound macro-economic policies, transparency in how revenues are reported and spent, dialogue and relationship building with local governments, and programs for employment, education, and revenue contribution to local communities. And, while socioeconomic investments provide important benefits to the public in many regions, the costs clearly affect a mining company’s bottom line. Furthermore, these costs can also indirectly influence uranium market prices.

Uranium mining companies are involved in “primary uranium supply,” which is typically more expensive than “secondary supply,” in part due to the socioeconomic costs of uranium mining, especially in remote and underdeveloped areas. This also provides some explanation of why the long-term uranium price is higher than spot or mid-term uranium market prices, Klingbiel explained. “Prevailing prices in the long-term market, typically the domain of the uranium producer, are reflective of myriad costs borne uniquely by the uranium miner (including production costs, and costs related to labor, materials, and energy). In the 2007-2015 period, for example, the long-term price has been, on average, 24 percent higher than the spot price,” Klingbiel said. “Of course, there are fundamental reasons why long-term price premiums exist in our market, but socioeconomic factors help to shape why mined production is comparatively expensive,” she added.

From the ground up, the ethics of green energy characterize the nuclear fuel market. The socioeconomic impacts of our industry begin with uranium mining. Knowing this, producers are ensuring their policies are grounded in good stewardship and are forging long-term strategic relationships founded on common principles that reflect class-leading sustainable development. Producers understand the social responsibility they have to the local communities, but honoring these responsibilities adds to the cost of mining uranium. However, their commitment to the betterment of local communities ultimately supports the business, through education, social welfare, and infrastructure building.

“As long as we promote nuclear power as a means to lessen our environmental footprint, uranium mining will be the first stop on the road to green energy. From farm to table, from mine to reactor, positive socioeconomic impacts of uranium mining can align with the nuclear industry’s green energy message,” Klingbiel said. [top]