Uranium prices are running hot again, which could force Cameco Corp. (CCJ) even higher.
For one, “Geopolitical uncertainty and concerns about the security of uranium supply continue to be the driving forces behind the ongoing uranium rally,” noted Jacob White, Sprott Asset Management ETF product manager, as quoted by ETFTrends.com.
Two, according to a recent Wall Street Journal report, miners are already flooded with projects as demand for the metal increases.
“Miners are struggling to get enough uranium out of the ground. That is helping to push prices of the nuclear fuel to nearly 16-year highs,” they added. Plus, Cameco “recently said it may need to buy more uranium before the end of this year to meet obligations to customers after suffering setbacks at key mines.”
All of which should force uranium prices even higher in 2024.
About 22 countries, including the U.S., Canada, the UK, and France pledged to triple their nuclear capacity by 2050 at the 28th Annual UN Climate Change Conference (COP28).
According to Forbes, “About 175 more nations gave their tacit approval to nuclear by electing to triple their use of renewables by 2030 and phase down fossil fuels.” All of which could be great news for uranium companies, such as UR-Energy.
