Every commodity cycle is ultimately determined by supply and demand. The signs are good for uranium.
Based on the new and planned construction of nuclear power plants, there is a uranium deficit. While around 180 million pounds of uranium are needed annually today, it is estimated that 250 to 300 million pounds of uranium will be urgently needed in 2040. A balanced market is not foreseeable in the near future. So how is the industry dealing with this? Well, it always has secondary stocks and inventories to make up the shortfall. But at some point, these stocks will be depleted to such an extent that the only option left is to boost production by raising prices. And this is probably happening right now, as the price of uranium has changed significantly over the past three years and is rising. Plans to reopen closed mines, expand existing mines and build new ones are also on the increase.
Uranium is only available in very high concentrations in a few places. This makes the uranium supply more susceptible to disruptions. With a 44 percent share of global uranium production, Kazakhstan is the largest uranium producer in the world. Canada is also significant. Kazatomprom from Kazakhstan has stated that it will probably not achieve its actual goal of increasing production this year. In terms of price, uranium was in a commodity supercycle in the 1970s and 2000s. A price of 135 US dollars per pound of uranium was reached, which then collapsed to 18 US dollars. Today, a pound of uranium costs just under 87 US dollars per pound. A uranium supply overhang has been reduced and energy policy has shifted back towards nuclear power. Uranium companies such as Premier American Uranium or Cosa Resources should therefore have the best prospects for the future.
Cosa Resources - https://www.commodity-tv.com/ondemand/companies/profil/cosa-resources-corp/ - and its uranium projects are located in Saskatchewan in the Athabasca Basin, which is famous for its uranium wealth.
Premier American Uranium - https://www.commodity-tv.com/ondemand/companies/profil/premier-american-uranium-inc/ - also owns high-quality uranium projects in Wyoming and Colorado.
Current company information and press releases from Premier American Uranium (- https://www.resource-capital.ch/en/companies/premier-american-uranium-corp/ -) and Cosa Resources (- https://www.resource-capital.ch/en/companies/cosa-resources-corp/ -).
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
