Uranium Report 2020
The Corona crisis continues to have a firm grip on the globe. The massive interventions in the development of the free economy have left deep scars. Mass unemployment and economic hardship have suddenly become part of everyday life again. But every crisis also has its winners. In the case of Corona, one big winner is already emerging: the uranium sector!
While many large mines have had to temporarily shut down or even completely shut down due to possible infections of personnel, the nuclear power plants that are relevant to the system must continue to operate at the same time in order to prevent the social system from falling apart completely. The USA in particular, but also other nations where nuclear energy plays an important role (such as France, Great Britain and China), urgently need a supply of fuel. Whatever the cost, one might almost think so, at least if one takes a look at the uranium spot price. It has gone up from US$ 24 to US$ 33.30 per pound in just 5 weeks. A plus of almost 40% and a four-year high at the same time!
Nevertheless, uranium values still lag behind the spot price. Although they were able to recover somewhat from their 10-year low, which was reached in March 2020, they are still stuck in the spiral of poorly performing energy stocks, which have been and will continue to be strongly influenced by the oil price crash.
A 2018 petition filed by US uranium producers led to the announcement in February 2020 that the US government would allocate US$150 million annually over the next 10 years to create a strategic uranium reserve. This reserve would be entirely derived from uranium from US mines. In doing so, the US government has made a step towards accommodating the domestic mine operators and is thus attempting to boost domestic production again. It is expected that US producers will need an average uranium price of at least US$50 to US$60 per pound to be able to produce sustainably.
This report provides a wealth of information on the uranium sector and offers insightful interviews with exclusively selected experts from the industry. The report is completed by the presentation of a number of interesting companies that are suitable for speculation on rising uranium prices.