Uranium market mood changes
If you ask around in the uranium industry, the mood on the uranium market seems to be changing. The market should probably soon move to support current and future production. A long-term trend reversal may have begun.
It is also interesting to note that Kazatomprom, a uranium heavyweight, saw its operating profit increase by 75 percent in the first half of 2020 compared to the same period last year. It is also exciting to note that the Corona Pandemic has hardly changed global electricity consumption.
The fact that climate change cannot function without nuclear energy, or at least not for a long time to come, is a fact that many countries have recognized and are therefore planning and building nuclear power plants. The uranium supply seems to be decreasing while the demand is stable. Uranium gaps have recently often been filled with uranium from the storage facilities. But mine closures, such as at Cameco, are increasing these gaps. In order to bet on uranium, investments can be made in uranium companies like IsoEnergy or Uranium Energy.
H.C.Wainwright & Co. recently recommended Uranium Energy as a buy, with a target price of $3.50 (now approximately $1.05). The investment bank also expects higher uranium prices in the long term due to current developments. Uranium Energy owns the Palangana, Burke Hollow and Goliad ISR projects and the Hobson processing plant in South Texas. It also owns the Reno Creek Project in Wyoming. This is the largest approved ISR project in the USA and is close to construction.
IsoEnergy has a promising portfolio in the Athabasca basin in Saskatchewan. In particular, the Hurricane Zone discovered by the company provides very good uranium values.
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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