Best future prospects for uranium companies
In price terms, uranium has recovered since March 2020, like so many other commodities. Uranium peaked at $34 per pound in 2020, the highest level since early 2016, due to supply problems caused by the pandemic. Currently, the uranium price is around 31 US dollars per pound of U308. Several reasons speak for a price increase, even for a turning point.
Uranium shares achieved an average return of 90 percent last year. The shares of uranium producers rose by 83 percent and those of development and exploration companies by 105 percent. In fact, since the end of March, uranium stocks have risen an average of 292 percent overall.
One price driver is likely to be the tight supply of uranium. Major producers have cut back production. This is because production costs have risen, and uranium prices are low. Investments have therefore been scaled back. There will also be further shutdowns as some uranium mines are exhausted. Therefore, the uranium market is now in a deficit.
At the same time, the number of reactors is increasing, and with it the demand for uranium. Because even though Germany has decided to phase out nuclear power, many countries are also relying on uranium in their energy mix and are therefore expanding the power supply with nuclear reactors. It's a good thing that there are uranium companies that could meet future demand, such as IsoEnergy. IsoEnergy's projects are located in the best uranium area, the Athabasca Basin in Saskatchewan. There are particularly good results there in the Hurricane zone on the Larocque East property. The project is 100 percent wholly owned by the company.
Also in the uranium business is International Consolidated Uranium - https://www.youtube.com/watch?v=Ib5kfm-19Mk. Initially focused on gold, the company decided early last year to enter the uranium market and acquire projects worldwide to meet the growing demand for uranium.
Current company information and press releases from IsoEnergy (https://www.resource-capital.ch/en/companies/iso-energy-ltd/).
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