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Anfield Energy Issues a Letter to Shareholders Outlining Its Plans for 2019 and Its View on the Uranium Market
VANCOUVER, British Columbia, March 04, 2019 (GLOBE NEWSWIRE) -- Anfield Energy Inc. (TSX-V: AEC, OTCQB: ANLDF, FRANKFURT: 0AD) (“Anfield” or the “Company”) is p
About this update from Anfield Energy Inc
[{"type":"text","content":" VANCOUVER, British Columbia, March 04, 2019 (GLOBE NEWSWIRE) -- Anfield Energy Inc. (TSX-V: AEC, OTCQB: ANLDF, FRANKFURT: 0AD) (“Anfield” or the “Company”) is pleased to provide the following letter to its shareholders from Company CEO, Corey Dias. Dear shareholders, 2018 was quite a year for Anfield Energy and the uranium space in general. Continued closures of producing uranium mines, combined with the investigation currently in the hands of the U.S. Department of Commerce related to the overdependence of U.S.-based utilities on foreign uranium supply as a matter of national security, leaves the uranium sector teetering on the edge of something potentially significant. Global trends are positive for uranium In 2019, global trends with regard to nuclear power are positive, with China pushing to increase its capacity in the near term. Challenges remain, however: the low uranium spot and term prices do not incentivize current or future uranium production – as shown via the shuttering of mines by a number of uranium producers worldwide – while the continued reluctance of US utilities to enter the long-term uranium market means that there seems to be no near-term path to an increase in pricing. Nevertheless, it is important to note that there remains a shortfall of uranium in the global market today. Primary supply cannot meet current demand, and secondary supply continues to dwindle. Utility contracts are not being renewed, which has left uncovered demand of greater than 75%. It is clear that the current market position is not sustainable. Department of Commerce investigation into overdependence on foreign uranium supply The U.S. Department of Commerce initiated an investigation into the dependence of U.S.-based utilities on foreign uranium supply as a matter of national security. Given that the U.S. is the largest consumer of uranium worldwide, and yet its domestic uranium producers account for less than 1% of the volume, the disconnect is stark. The potential of a quota could lead to a significant portion of U.S. uranium demand being supplied by domestic producers which could result in a market in which a premium is placed on U.S. uranium production. A final decision is expected in mid-2019. Anfield positions itself for the expected market turnaround Despite these concerns, Anfield has been actively seeking assets which would i...