Let's go for the uranium shares
The spot price for U308 rose by 11 percent in the first quarter of 2020 after years of dumping. In April, it reached a four-year high, 33.25 US dollars for a pound of uranium. This was 35 percent more than in January. At the end of June, the price came back somewhat, falling below $33. Today, US$32.95 must be paid for a pound of U308.
The fact that the uranium price has finally awoken from its slumber is due on the one hand to the closure of mines and projects planned for a long time. The closure of the McArthur River mine in Saskatchewan is the outstanding event. The Cigar Lake Mine, the most productive of all, which is also important, was also closed. And in the uranium country of Kazakhstan, the production volume was reduced. Allegedly due to the pandemic, but some market observers suspect more economic reasons, namely the heating up of the uranium price.
Secondly, Kazatomprom, the largest uranium producer in the world, has stopped selling uranium on the spot market. Uranium may even have to be bought in order to meet contractual obligations. At the same time, however, new nuclear power plants are being built and planned around the globe.
Just as Rick Rule of Sprott had advised investors in January to consider uranium as an investment, this could apply all the more today. So, let's go for the uranium stocks, such as Uranium Energy or IsoEnergy.
Uranium Energy owns uranium projects in the USA (Texas, Wyoming, New Mexico, Paraguay, Arizona). The big plus is that they are well advanced or already approved - and the USA wants to rely more on uranium from its own country.
IsoEnergy should also be pleased about the rising uranium price. The company's projects in the uranium-rich Athabasca Basin in Saskatchewan cover a total of around 170,700 hectares.
Current company information and press releases from Uranium Energy (https://www.resource-capital.ch/en/companies/uranium-energy-corp/) and IsoEnergy (https://www.resource-capital.ch/en/companies/iso-energy-ltd/).
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