Uranium approaching a deficit

After the Cold War, the uranium market was oversupplied for a long time. The price of uranium fell, and investment declined. The fact that the uranium market is very different today can be seen from the rise in the price of uranium. The acceptance of nuclear energy has increased enormously. Around 435 nuclear power plants are currently online. An estimated 170 more are expected by 2050, according to the World Nuclear Association. This development is due to the decarbonization targets. The demand for uranium is therefore increasing. This could result in a shortfall of more than two billion pounds of uranium by 2040.

Today, investment in the uranium sector is increasing, as uranium is a key factor for many governments in the pursuit of clean energy. Uranium companies provide leverage to the underlying uranium price. In 2007, this was less than 20 US dollars per pound of uranium. Currently, the uranium price is close to the 100 US dollar mark. This means that almost anyone can mine uranium profitably. And so disused mines are being put back into operation. However, this will not happen overnight. The uranium industry’s wait has thus come to an end. The performance of smaller uranium companies in particular could rise sharply. Mergers and acquisitions could now increase. The same applies to spin-offs of mining companies that have other commodity projects in their portfolio in addition to uranium projects.

Particular attention is paid to uranium companies with projects in the uranium-rich Athabasca Basin in Saskatchewan. These include Cosa Resources and IsoEnergy.

Cosa Resources – https://www.commodity-tv.com/ondemand/companies/profil/cosa-resources-corp/ – has uranium projects in the Athabasca Basin in Saskatchewan covering an area of more than 200,000 hectares. Drilling results are eagerly awaited.

IsoEnergy – https://www.commodity-tv.com/ondemand/companies/profil/isoenergy-ltd/ – is also at home in the Athabasca Basin and also has uranium mines in Utah. The company plans to resume uranium production at the Tony M uranium mine there next year.

Current company information and press releases from IsoEnergy (- https://www.resource-capital.ch/en/companies/iso-energy-ltd/ -) and Cosa Resources (- https://www.resource-capital.ch/en/companies/cosa-resources-corp/ -)

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