Analyst Note
| Kristoffer Inton |The coronavirus pandemic has had mixed impact on uranium supply and demand but will likely be negative overall for Cameco. On one hand, the pandemic has forced unexpected supply disruptions. For example, Kazatomprom had reduced operations at all its mines for three months starting in April, with a recent extension announced earlier this month. With Kazakhstan responsible for 40% of global production, any change in production has a material impact on the supply market. In addition, Cameco had shuttered Cigar Lake, and various other producers also reduced operations in response to the pandemic. As a result, spot prices rapidly rose 35% to more than $33 per pound from February to April and have remained flat since.