Forsys Metals Corp is an innovative uranium development Company, with a dynamic management team with strong African mining experience, focused on creating shareholder value by developing uranium assets in Namibia, Africa. The Company’s flagship Norasa Uranium Project is 100% owned, permitted and has a large NI 43-101 Resource and Reserve. Norasa is one of the world’s premier undeveloped uranium projects, and is only the third Mining Licence to be granted within the last few decades in Namibia.

The Norasa has NI 43-101 compliant Reserves of 90.7 Mlbs U3O8 supporting a 15 year mine life included in Measured and Indicated Resources of 115.0 Mlbs U3O8 with a further 11.0 Mlbs inferred U3O8. Power, water and transport resources are available and the Namibian government has signalled a strong commitment to ensuring the success of Norasa.

Uranium Demand

Various industry and equity analyst reports are now indicating that although there has been a prolonged slowdown in the nuclear power programs for some countries, the forecast demand for uranium in higher nuclear growth nations such as China, the Kingdom of Saudi Arabia, South Korea, India, Russia and the United Arab Emirates is expected to remain strong and supportive of strengthening of the uranium price over the longer term.

​Global primary mine production currently supply 87% of demand for uranium. The balance of demand is supplied from secondary sources such as remaining excess commercial inventories, reprocessing of spent fuel and inventories held by governments

​Analysts are predicting a long-term uranium price of US$65/lb for contract prices and the consensus long-term price from 2019 is US$66/lb.

On 1 November 2016 the World Nuclear Association reported there are 448 nuclear power plants operating worldwide, with 58 nuclear reactors under construction, 167 reactors planned worldwide and 345 reactors proposed and those in operation currently produce 15% of the world’s electricity generation. The low operating cost of nuclear power generation and the increasing concern for the environment and climate change are driving a nuclear renaissance. With the only significant commercial use for uranium being fuel for nuclear reactors, it may follow that the nuclear renaissance will have a significant influence on future uranium demand and price.

Namibia is a major source of uranium, being the fifth largest producer in the world in 2015 from the established Rössing and Langer Heinrich uranium mines.

Uranium Prices

Most of the countries that use nuclear-generated electricity do not have sufficient domestic uranium supply to fuel their reactors and therefore they secure the majority of their required uranium supply by entering into medium-term and long-term contracts with foreign uranium producers and other suppliers. Remaining supplies are secured through spot purchases of uranium.

The long-term contract price for uranium is reported on a monthly basis by Ux Consulting.