A pound of uranium currently costs almost 57 US dollars. The supply chain is also reacting. There are more and more restart announcements. Cameco wants to restart the McArthur River uranium mine in 2022 or 2023. Paladin Energy also wants to resume commercial production in 2024, at its Langer Heinrich uranium project in the Namib Desert, which has been put on hold. A lot of money will be invested in this. The reason is clear, uranium demand is expected to increase by 40 percent by 2040. At the same time, Western utilities are looking to diversify away from geopolitically problematic countries. Thus, uranium markets could split into western and eastern ones. The east includes Russia, Uzbekistan and Kazakhstan, for example. They account for about 60 percent of global uranium supply. Countries with a geographic or geopolitical position to Russia will tend to be avoided by the West.
A supply deficit is looming in the Western uranium markets, as safe jurisdictions are in demand. With the Ukraine war, the uranium spot price was able to overcome the $60 per pound mark for the first time since 2011. Analysts expect uranium prices to continue to rise. And any further price increase should be positive for uranium stocks.
Especially for companies with foresight, such as Uranium Energy - https://www.youtube.com/watch?v=Cygvde0ucEA . The company not only owns two operational production platforms and seven licensed low-cost ISR uranium projects, but also a huge physical uranium portfolio. In the process, the uranium has been and continues to be purchased at extremely favorable prices.
In Canada in terms of uranium (and also vanadium), Labrador Uranium - https://www.youtube.com/watch?v=tw25CP21Ifs - is involved in Newfoundland and Labrador. All projects are wholly owned by Labrador Uranium. A large-scale drilling program is underway.
Current corporate information and press releases from Uranium Energy (www.resource-capital.ch/en/companies/uranium-energy-corp/) and Labrador Uranium (www.resource-capital.ch/en/companies/labrador-uranium-inc/).
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