The uranium market is not in equilibrium. And there is no significant new supply of uranium in sight. The uranium price could go up even further. This is because the global production of uranium is lagging far behind the global demand for nuclear power plants. For investment in the uranium sector to increase, the price of uranium would probably have to rise even higher. The scarce uranium supply should continue to ensure a sustained bull market. The fact that the uranium price has exceeded the 100 US dollar mark for a pound of uranium is a milestone.
This price had not been seen since the financial crisis in 2008. In January, the price of a pound of uranium even rose once to 106 US dollars. The price momentum has accelerated since September in particular. One of the reasons why the price has risen so sharply was probably the announcement by Kazatomprom that it would not be possible to increase production by 2024. On the contrary, uranium production is expected to be 14 percent lower than previously forecast. That is around nine million pounds of uranium less, which corresponds to a reduction of around six percent of global uranium production from mines.
After uranium prices fell sharply following the Fukushima accident, Kazatomprom operated below its capacity. Now the mine supply is not sufficient to cover the world's reactor requirements. There is also not much left in stock. As a result, many uranium mining companies have seen their share prices rise in recent months. Promising uranium companies include Premier American Uranium and American Future Fuel.
In Wyoming and Colorado, Premier American Uranium - https://www.commodity-tv.com/ondemand/companies/profil/premier-american-uranium-inc/ - has uranium projects located in excellent uranium-rich areas.
American Future Fuel - https://www.commodity-tv.com/ondemand/companies/profil/american-future-fuel-corp/- is also located in an excellent area with its Cebolleta uranium project, in the Grants Mineral Belt in the USA.
Current company information and press releases from American Future Fuel (- https://www.resource-capital.ch/en/companies/american-future-fuel-corp/ -) and Premier American Uranium (- https://www.resource-capital.ch/en/companies/premier-american-uranium-corp/ -).
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