In this section of our recent weekly catch-up with Brandon Munro, Uranium Market Commentator and CEO of Bannerman Resources (ASX: BMN), we discuss the impact of COVID-19 on uranium-producing countries like Kazakhstan.
International uranium production has seen a significant decline, which can only be a good thing for uranium bulls. Kazakhstan's lockdown has recently been tightened again due to concerns surrounding a potential second wave. Is this the moment for uranium bulls to pile in? Kazatomprom had already said it's not going to be making up its lost ounces, and its 3-month shutdown looks set to be suspended indefinitely. Destocking appears to now be a universal strategy for uranium producers because even Kazatomprom isn't making money at these low U3O8 prices.
It remains to be seen whether there will be a twist in the tale because Kaztomprom really does hold most of the cards. However, the utility companies are the real bosses of the situation, and their strategies will be extremely important at the carry trade becomes increasingly obsolete.
Company page: https://www.bannermanresources.com.au/
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