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In response to Cameco’s decision to cut back on supply, Research firm Raymond James calculated that global uranium production will be cut down by 15 million pounds if the suspension lasts for 10 months.

“To date, we have made good progress in reducing costs but unfortunately given the continued market weakness, more needs to be done,” Gitzel said, adding, “we can’t control the market so our focus is on positioning the company to weather the continued low uranium prices and have uncommitted, low-cost supply to deliver into a strengthening market.”

Global X Uranium ETF tracks a portfolio of global uranium miners, mostly from Canada 64.5%, followed by Australia 13.8%, U.S. 9.2%, Hong Kong 7.5% and China 5.0%. Top holdings include many prominent miners, such as Cameco 23.1%, Nexgen Energy 13.2%, Uranium Participation 7.9%, Denison Mines 5.2% and Fission Uranium 4.8%, among others.

For more information on the uranium miners segment, visit our uranium category.