Uranium becomes scarce
This is also the view of Cameco's CEO. The gap between supply and demand is set to widen. According to estimates, the uranium market is expected to have a deficit of about 100 million pounds of U308 annually by 2035. To make up this shortfall, six McArthur or Cigar Lake projects would need to be discovered, developed and brought on stream over the next 15 years.
Investments would have to be made now, but currently the uranium price is still too low. Even in the short term, the supply of uranium is not particularly abundant. For example, Cameco's Cigar Lake uranium mine shut down last December for Covid-19 reasons, and the McArthur property is idle. In addition, Kazakhstan, a major uranium-producing country, is holding back production.
And there are uranium mines that are permanently closed, for example in Australia and Nigeria. More and more countries are turning to clean energy from nuclear power plants, and the new U.S. President Biden has already spoken out in favor of building modern plants.
This is because there is a global demand for sufficient electrification and, at the same time, great emphasis is being placed on moving away from fossil fuels. This increases the demand for nuclear energy, not only for large reactors but also for small ones. So uranium companies should have a bright future.
For example, Uranium Energy - https://www.youtube.com/watch?v=ZdchvJMUXZc - is gearing up to supply the U.S. with uranium. The company owns the ready Hobson processing plant and five ISR projects in South Texas.
IsoEnergy also scores with high-grade uranium projects, namely in the Athabasca Basin in Saskatchewan.
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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