Uranium on the sunny side
The current spot price of around US$30 per pound of uranium is well above the multi-year low. However, a higher price is still needed to generate profits. For the construction of new uranium mines, the uranium price would probably have to be significantly higher. The current positive mood has also had an impact on the uranium companies, many of whose share values have risen. Following the widespread shutdown of Japanese reactors after the Fukushima disaster, a uranium surplus had built up. In the uranium industry, contracts are long-term and expensive long-term contracts were in place.
In 2016, for example, uranium cost only $18 per pound. Then in 2018, relatively late, producers such as industry heavyweight Kazatomprom reduced their uranium production. Cameco, another uranium giant, put its McArthur River mine into maintenance mode. Rio Tinto sold a large part of its Rossing uranium mine to the Chinese. Today, uranium is considered a reliable source of energy and prevents the generation of many billions of tons of carbon dioxide. And preventing emissions is now important worldwide because of climate policy. According to a report by the World Nuclear Association, uranium demand has already increased by about 26 percent compared to the previous year.
And there are still uranium companies that have the potential for spectacular projects and are pushing ahead with them, because they have recognized the potential of the coming years.
These include IsoEnergy - https://www.youtube.com/watch?v=tPkBdRV_lew, for example, with its uranium projects in the Athabasca Basin in Saskatchewan, which is famous for uranium wealth. The Hurricane Zone discovered by the company on the Larocque East property there is particularly promising.
International Consolidated Uranium - https://www.youtube.com/watch?v=pfJv6yAcNMw - owns gold projects but has been focusing on uranium projects for some time. The company is working on or has completed the acquisition of several projects and is active in Labrador, Quebec and Australia.
Current company information and press releases from IsoEnergy (https://www.resource-capital.ch/en/companies/iso-energy-ltd/).
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