TradeTech's monthly Production Cost Indicator™ (PCI) value, which captures the company's proprietary judgment of the life-of-mine full cost (LoM C3™) necessary to incentive and support new primary uranium production, increased 6.6 percent (US$3.50) in September to $56.20 per pound U3O8, marking 16 months without decline and the highest value since the Indicator's inception in April 2020.
ENGLEWOOD, Colo., Oct. 4, 2022 /PRNewswire-PRWeb/ -- TradeTech's monthly Production Cost Indicator™ (PCI) value, which captures the company's proprietary judgment of the life-of-mine full cost (LoM C3 ™) necessary to incentive and support new primary uranium production, increased 6.6 percent (US$3.50) in September to $56.20 per pound U3O8, marking 16 months without decline and the highest value since the Indicator's inception in April 2020.
The greatest driver behind the increase in September's PCI is a concerted shift toward TradeTech's LoM C3 indicator used in the company's Forward Availability Model (FAM) 2. For context, TradeTech evaluates two cost scenarios when conducting its price analysis. While FAM 1 production costs are typically consistent with good project development, FAM 2 reflects a cost profile associated with greater susceptibility to risk. Identification of cost-related risk, such as inflation, means that projects have a greater propensity to produce uranium concentrates toward the upper levels of TradeTech's maximum conceivable production cost assumptions.
"TradeTech's perception of risk specific to each uranium project, including considerations of how risk translates to—and impacts—mining and production economics is particularly relevant to the company's assessment of uranium production costs. This application of sensitivity testing can identify and quantify project-specific risks, as well as opportunities," said TradeTech President Treva Klingbiel.
Notably, TradeTech's PCI comprises many projects that completed feasibility studies and technical reports through 2020 and in 2021, before significant increases in the cost of key consumables, reagents, services, and transport gathered momentum. TradeTech continues to update its own forecast of future project economics against the prevailing trends and trajectories of mine-gate and mine-to-market inflation.
About TradeTech
TradeTech launched its Daily Uranium Spot Price Indicator in March 2011, which is provided to subscribers worldwide. The company's "Nuclear Market Review" (NMR) is published each Friday evening, and reports the Weekly Uranium Spot Price Indicator, uranium trading activity, industry news, and market data. The monthly edition of the NMR, released on the last day of each month, includes TradeTech Market Values (Exchange Value, UF6 Value, Loan Rate, Conversion Value, SWU Value, and Transaction Value) and Mid- and Long-Term Uranium Price Indicators and Production Cost Indicator, as well as analysis related to price determinations, supply/demand information, and industry and financial news. TradeTech also publishes "The Nuclear Review," a monthly trade publication dedicated to the international uranium and nuclear energy industry, and a quarterly "Uranium Market Study," which includes near- and long-term forecasts.
TradeTech—and its predecessor companies—has supported the uranium and nuclear fuel cycle industry for more than 50 years and is widely recognized for its expertise in trading activities and its comprehensive knowledge of the technical, economic, and political factors affecting this industry. TradeTech provides expert market consulting, has relationships with international nuclear fuel buyers and sellers, and maintains an extensive information database on these industries.
Media Contact
Treva Klingbiel, TradeTech, LLC, 1 303.573.3530, [email protected]
SOURCE TradeTech, LLC
Share this article