NexGen Energy down amid weak uranium prices

Shares in the Vancouver-based uranium junior, whose flagship venture is the Radio Uranium Project in Saskatchewan’s Athabasca Basin, lost 10% to $0.285.

Pressure on companies in the sector is intensifying as an expected increase in uranium prices has failed to materialize. The June spot price of U3O8 is down to $28 per pound, a nine-year low.

The long-term price remains at $45, the lowest since 2008 and compared with $67 prior to the Fukushima nuclear disaster in 2011.

Many uranium miners are putting projects on hold to focus on cost-cutting measures.

Last month, Canada’s Cameco (TSE:CCO, NYSE:CCJ), the world’s number one listed uranium producer, said it was deferring its Millennium project in Saskatchewan due to the poor market conditions.