Australian uranium explorer Marenica Energy (ASX: MEY) is priming itself for an expected increase in uranium prices as the supply deficit worsens.

Speaking at Mines and Money’s 5@5 webinar, Marenica Managing Director and CEO Murray Hill said supply of the yellow metal is being squeezed.

“We’re seeing unprecedented supply deficit levels due to the impact of COVID, and also the low uranium price over a prolonged period of time,” he said.

“There’s operations going into care and maintenance and some not coming out because of COVID and also because of the low uranium price, but the demand for uranium continues to grow.”

But with roughly 54 new nuclear reactors currently under construction, Mr Hill expects demand will keep increasing – and the only way to incentivise further uranium production will be through higher prices.

You can hear Mr Hill’s comments on uranium supply and demand factors, Namibia’s position as a uranium leader, and Marenica Energy’s counter-cyclical business strategy in the Mines and Money 5@5 African Mining Opportunities webinar below.

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