Uranium is irreplaceable
Uranium is an important raw material for supplying the world with sufficient electricity. The market for uranium companies is not large, only a few mines worldwide can earn at current uranium prices. However, this is not enough to cover the annual consumption. Globally, the average cost to produce one pound of uranium is around 40 US dollars. To build new mines, the price is about 60 US dollars per pound of uranium.
After the Fukushima disaster, however, uranium prices fell. This resulted in the closure of large uranium mines in Canada and Kazakhstan. But uranium prices have recovered. Japan has restarted 30 reactors and nuclear power plants are being eagerly planned and built in China and other countries.
Uranium supply contracts are long-term and some uranium mining companies have survived with low uranium prices. But many of these contracts have expired or are about to expire. If the electricity suppliers now come back to the mining companies, then the price of uranium will certainly be negotiated hard. Uranium prices will continue to rise, and the uranium companies will benefit from this.
The USA, for example, has to import around 93 percent of the uranium it needs. It would therefore not be surprising if the USA were to support US production.
This would, for example, massively benefit Uranium Energy - https://www.youtube.com/watch?v=L1d5BRp5sCU=9s -. The fully licensed Hobson treatment plant in South Texas is a big plus for Uranium Energy's uranium projects there (some already approved). The company's portfolio also includes uranium projects in Paraguay, Arizona and New Mexico.
Fission 3.0 - https://www.youtube.com/watch?v=CDpqleXvBTU=10s - has 18 promising uranium properties in the Athabasca Basin of Saskatchewan. The Company is focused on the strategic acquisition, exploration and development of uranium properties.
Current corporate information and press releases from Fission 3.0 (www.resource-capital.ch/de/unternehmen/fission-30-corp/) and Uranium Energy (www.resource-capital.ch/de/unternehmen/uranium-energy-corp/).
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