Uranium prices are running hot again.
“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.
According to a recent Wall Street Journal report, miners are already flooded with projects as the 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,” WSJ 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.”
That could be great news for uranium companies, such as Uranium Energy Corp. (UEC), Energy Fuels Inc. (UUUU), Cameco Corp. (CCJ), and Denison Mines Corp. (DNN).
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. Indeed, nuclear power is carbon-free, runs 24/7 and can firm up intermittent wind and solar energy, replacing natural gas and co-locating where retiring coal plants are now. That has the practical effect of reducing overall costs — the primary impediment to a worldwide nuclear renaissance.”