URU Metals (LON:URU) remains bullish on the uranium market and sees demand rising for nickel.
“While it is very clear that there is a growing demand under the most conservative assumptions for uranium, the ability for the mining industry to meet this growth with new supply is limited,” John Zorbas, chief executive said.
This bodes well for URU, which continues to develop the Närke oil shale/uranium deposit in Sweden.
Its focus, on the former Swedish government-owned site, is to complete a study into whether technological advancements in the last 40 years mean it can be redeveloped into a financially viable project.
Meanwhile, the nickel price has almost halved in the last year, but nickel use is growing by around 4%, Zorbas said.
“The fastest growth today is seen in the newly and rapidly industrializing countries, especially in Asia.”
This should bring the price nearer the US$8.5/lb it was a year ago, rather than the US$4.7 it is now.
URU owns 100% of the Zebediela and 50% of the Burgersfort nickel projects through its acquisition of Southern African Nickel.
The company was speaking as it released full-year results which showed URU made a loss of US$1.7mln for the year to March.