In the Financial Post today there is some excellent analysis (not available online) of the decision of Kazakhstan, the Saudi Arabia of uranium production, to cut its production for the next three years.
“To put Kazakhstan production in context, it represents about four times what Saudi Arabia does to the oil market,” said Travis McPherson, vice president of corporate development at NexGen Energy Ltd., a uranium explorer backed by Hong Kong billionaire Li Ka-shing. “This total cut by Kazakhstan would amount to Saudi Arabia completely coming offline in the oil space.”
The Financial Post goes on to note that the news from Kazakhstan sent shares of uranium producers higher with Cameco up as much as 18% and Denison Mines up as much as 19%.
NexGen (T.NXE) itself went from $2.98 to $3.45 before settling back to trade at $3.40.