|The uranium price has come a long way from the lows experienced post-Fukushima, yet is still not at the level analysts have been touting. Indeed, it continues to fluctuate around the 40 dollars-per-pound mark.|
Given that atmosphere, many companies are finding it difficult to remain in production, though those with uranium contracts have the incentive to keep on producing, and lower-cost producers also continue to churn out yellowcake. Generally, in-situ recovery leads to lower costs for producers, but lower-cost conventional mines also exist. That said, the fact that such companies are able to produce in the current price environment does not mean they are producing at capacity. Indeed, many are putting out lower amounts of the metal to avoid flooding an already saturated market.