Uranium price rises
Many experts predict a sharp rise in uranium prices. For once, the supply of uranium does not meet demand. In 2020, global uranium production fell to 123 million pounds of uranium. That was the lowest level since 2008, but at the same time demand was around 180 million pounds of uranium. They closed that gap by reducing stockpiles and re-enriching the uranium backlog. But these are short-term action strategies.
In addition, major uranium mines are closing, leaving a further supply gap of 5.6 million pounds of uranium. Closed in January was the Ranger uranium mine in Australia, a minus three million pounds per year. In Niger, the Cominak uranium mine ended production, a shortfall of 2.8 million pounds of uranium. This further increases the gap between supply and demand. In China, the recently unveiled five-year energy plan calls for a 46 percent increase in nuclear capacity by 2025.
Planning for new nuclear power plants is also in full swing in India and the Middle East. Several nuclear power plants that were shut down after the Fukushima debacle are in the application process for restart. And in the USA, the president's plans for CO2 reduction will lead to increased use of nuclear energy.
Uranium should therefore be in strong demand and the uranium price should continue to move upwards due to the gap between supply and demand. This will please uranium companies such as International Consolidated Uranium or Uranium Energy.
International Consolidated Uranium - https://www.youtube.com/watch?v=pfJv6yAcNMw - owns uranium projects in addition to gold projects. An agreement to acquire the Moran Lake project in Labrador has been reached, as well as the Ben Lomond and Georgetows projects in Australia. In Quebec, the Company has acquired the Dieter Lake uranium deposit.
Uranium Energy - https://www.youtube.com/watch?v=AaOfkA_AA2s - is also active in uranium, for example with the Burke Hollow uranium project, the largest ISR project under development in the USA. Further projects, some of them fully licensed, and a processing plant are part of the portfolio.
Current corporate information and press releases from Uranium Energy (https://www.resource-capital.ch/en/companies/uranium-energy-corp/).
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