PDN +6.86%: The Uranium sector lit up today following news that Cameco (CCJ US) is having some production issues which is expected to impact its 2023 production forecast. It now expects to produce up to 16.3m pounds of uranium concentrate at the Cigar Lake mine this year which is below its previous forecast of 18m pounds. They also said that Production from the McArthur River/Key Lake operations for 2023 is anticipated to be 14m pounds down from the previous forecast of 15m pounds. This is meaningful in a market that is already tightening, and prices should clearly track higher as a consequence.
- Lower production from Cameco should drive Uranium prices higher.
MM remains long & bullish on PDN
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