Uranium still has a lot of upside

The analysts at Atrium Research already took a close look at the uranium sector in November 2022. Since then, the uranium price on the spot market has risen by more than 84%. It reached a high of USD 106 per pound of U3O8 in January 2024.

As the experts explain, this drastic price increase has been building up for years, if not decades – mainly due to the high demand for the metal in view of the ambitious decarbonization targets and the uncertain future supply.

However, Atrium continues to believe that the spot price for uranium is still not high enough to serve as an incentive to build up new production. Which means, they say, that there is still room for the uranium price to rise.

Numerous countries have included nuclear energy in their strategy

In their last report on uranium, the analysts highlighted key developments in demand for nuclear energy as uranium spot prices stagnated until 2022. Many countries had then included nuclear energy in their strategies to achieve net-zero emissions targets – an issue that remains current, today, says the report.

Since then, however, numerous agreements and announcements have been signed and made public worldwide to triple nuclear power capacities by 2050. This is the main reason why the spot price has risen from USD 50 to USD 92 per pound since the last Atrium report, the experts explain. In addition, the numerous sanctions imposed by the USA and European countries in light of Russia’s war in Ukraine have had and will have a significant impact on uranium prices.

On the supply side, a strong rally in the spot market for uranium is leading to mines that have been shut down for a long time being put back into operation, Atrium Research continues. However, there is still a lack of new, greenfield supply, especially as it takes five to ten years to start production at a new site. In view of this, the analysts believe that the uranium spot price will continue to rise in the coming years and that capital will flow into completely new projects.

See here for the complete research report:

Uranium: Only Getting Started

At Goldinvest.de, we have also been highlighting opportunities in the uranium sector for some time. For example, we introduced our readers to uranium project developer Laramide Resources (WKN 157084 / TSX LAM) at the end of March 2023, when the stock was still trading at C$0.446. Laramide has since reached a 12-months high of around CAD 0.92 and is still trading at CAD 0.84 per share, representing an increase of around 88% since it was first mentioned here.

Canada’s Aero Energy (WKN A4007Y / TSXV AERO) is still at the very beginning of its development. The company is led by a true A-team in uranium exploration. CEO and Chairman Galen McNamara, for example, was Senior Project Manager at NexGen Energy. The technical advisors also include industry-renowned names such as Garrett Ainsworth, who was involved in the discovery of deposits at both Fission Uranium and NexGen Energy, as well as Sean Hillacre, President and VP of Exploration at Standard Uranium.

And Aero Energy has set itself the goal precisely of continuing the success story of Fission and NexGen in the Athabasca Basin, which is known for its high-grade uranium deposits. The company is focusing on three promising, drill-ready projects on which drilling is scheduled to begin in early June, already. Further information on Aero Energy can be found in the company profile on Goldinvest.de