Writer: Kevin Dwyer CEO,Head Trader January 11, 2024
NUCLEAR RE-EMERGENCE: URANIUM PRICES SOAR TO 15-YEAR HIGH
UNPRECEDENTED DEMAND DRIVES URANIUM UPSURGE
January witnessed uranium prices ascend to an impressive $92 per pound, the pinnacle since 2007, propelled by robust demand signals and escalating supply uncertainties. The erratic nature of fossil fuel prices, coupled with the resolve to slash carbon emissions aggressively, has ushered in a global consensus. The United States, joined by a cohort of 20 nations, has unveiled plans to augment nuclear power capacity threefold by the mid-21st century.
GLOBAL NUCLEAR AMBITIONS INTENSIFY
Leading the nuclear resurgence, China is forging ahead with 22 new reactors out of 58 under construction worldwide. Japan has rekindled its nuclear projects to bolster output, and Finland's recent endeavour marks Europe's inaugural nuclear inauguration in nearly two decades. In response to this burgeoning nuclear renaissance, utility companies have secured contracts worth 160 million pounds of U3O8 in 2023—surpassing any annual commitment since 2012.
SUPPLY RISKS AMID POLITICAL TENSION
The geopolitical landscape adds a layer of complexity, with Western utilities eschewing Russian uranium in light of the Ukraine conflict. Concurrently, American officials are inching towards a complete embargo on imports from the leading nuclear fuel supplier, exacerbating supply-side pressures. The sector stands at a crucial juncture, balancing the imperatives of energy security and geopolitical strategy.
OUR VIEW
The global trading industry is buzzing as the prices of Uranium continue to rise. Since the start of 2024, there has been an increase of USD 1.50/LBS or 1.65%. Mine$tockers feels that prices will rise further and reach 93.16 USD/LBS by the end of the quarter. Many analysts foresee a steady price rise and predict it to reach 99.94 USD/LBS in the coming year.
COMING SOON
We will feature the Uranium stocks we follow to exploit the uranium bull market.
Investment Disclosure
The content provided on this website and in Mine$tockers episodes is for informational purposes only and should not be considered as an offer, solicitation, recommendation, or determination by Mine$tockers Inc. for the sale of any financial product or service or the suitability of an investment strategy for any investor.
Investors are advised to consult a financial professional to determine the appropriateness of an investment strategy based on their objectives, financial situation, investment horizon, and individual needs. This information is not intended to serve as financial, tax, legal, accounting, or other professional advice, as such advice should always be tailored to individual circumstances.
The products discussed herein are not insured by any government agency and carry risks, including the potential loss of the principal amount invested. Any information provided is based on both internal and external sources and should not be construed as an endorsement or conclusion regarding a company's financial prospects, resources, or management. Opinions expressed may change and should not be relied upon. It is crucial to seek personalized investment advice for your unique situation.
Natural resources investments are generally volatile, with higher headline risk than other sectors. They tend to be more sensitive to economic data, political and regulatory events, and underlying commodity prices. The prices of natural resources investments are influenced by factors such as the costs of underlying commodities like oil, gas, metals, and coal. These investments may trade on various exchanges and experience price fluctuations due to short-term demand, supply, and investment flows.
Natural resource investments often respond more sensitively to global events and economic data, including natural disasters, political turmoil, pandemics, or the release of employment data.
Investing in foreign markets may carry greater risks than domestic markets, including political, currency, economic, and market risks. It is essential to evaluate if trading in low-priced and international securities is appropriate for your circumstances and financial resources. Past performance does not guarantee future results.
Mine$tockers Inc., its affiliates, family, friends, employees, associates, and others may hold positions in the securities it covers. Some of the companies covered may be paying clients of the production.
No investment process is risk-free, and profitability is not guaranteed; investors may lose their entire investment. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. Diversification does not ensure a profit or protect against loss. Investing in foreign securities involves risks not associated with domestic investments, such as currency fluctuations, political and economic instability, and differing accounting standards, potentially leading to greater share price volatility. The prices of small- and mid-cap company stocks generally experience higher volatility than large-company stocks and may involve higher risks. Smaller companies may lack the management expertise, financial resources, product diversification, and competitive strengths needed to withstand adverse economic conditions.
Studio
Toronto Ontario Canada