Hydrocarbons, including gas, oil and coal, are going to be phased out according to Green policy and replaced with wind and solar power. The problem with this proposal is that the wind does not blow consistently at the same strength and the sun sets every evening. In fact, there are plans for a great number of new nuclear power plants around the world. China (Bloomberg) and India (India announces plans to build more nuclear power plants) lead the way. In 2021 the spot market saw the highest volumes since 1966 and cautious medium-term forecasts for uranium prices reached as high as USD 60 per ounce.
- The International Renewable Energy Agency (IRENA) estimates that at least $131 trillion is needed to reach carbon neutrality in 2050.
- Also, Uranium Energy now doesn’t need to build a plant at its Reno Creek project anymore given its proximity to Wyoming assets, thereby saving the company upfront capital that it can put to use elsewhere.
- Together, these three countries produce 43%, 15% and 11% of the world’s uranium resources as of 2022.
URNM, for the record, was the North Shore Global Uranium Mining ETF until 2022, when Sprott acquired and reorganized the assets. Developed countries need to seriously start investing in renewable energy to reach their carbon-free goals. For investors, there are plenty of opportunities to let idle sitting capital go to work. The sensitivity analysis of NexGen shows the profit potential of the mine at different uranium spot prices. The studies show high-grade uranium reserves in the mine, and considering the size of the reserves, this would make Rook I one of the largest uranium mines in the world.
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The isolation of uranium in its pure form by Eugène-Melchior Péligot in 1841 took place. Nowadays, uranium glass has collector’s value, especially 19th century tableware, which may have as much as a 25% admixture of uranium. More and more processes will probably be automated in the future and, with the technological progress of humankind, https://broker-review.org/ the number of robots in use may also increase significantly. In 2023, Uranium Energy has made progress in building out its production capabilities. Its production restart at the Christensen Ranch ISR project was completed in July, and the company later finished initial resource expansion drilling at Christensen Ranch as well as Irigaray.
Companies like the Uranium Royalty Corporation (UROY) provide capital to uranium mining companies in exchange for royalties or other interests. This approach offers exposure to uranium prices while also supporting the uranium mining https://forex-reviews.org/ industry. This one is volatile and speculative, so be mindful of the company’s market cap if considering it. That’s an attractive proposition to bet on if you’re willing to stomach the risks that small-cap stocks bring along.
- Its production restart at the Christensen Ranch ISR project was completed in July, and the company later finished initial resource expansion drilling at Christensen Ranch as well as Irigaray.
- Uranium is primarily used as fuel to power the nuclear fission plants that produce about 10% of the world’s electricity.
- The United States recently buffed its nuclear sector with $30 billion in tax credits to encourage nuclear power.
- We had a boom in aluminium, copper, building materials, steel and other raw materials.
Looking at the historical chart of uranium prices, we can conclude that the commodity is in a cyclical boom and its price is rising exponentially in the face of favourable price drivers. Mercenary geologist Mickey Fulp came to a similar conclusion, as he emphasised that uranium is a boom and bust commodity, meaning that every decade or so the price rises and then falls. The chart below shows a summary of historical bubbles in the price of uranium.
Largest producers of uranium in the world
Add to this the global energy crisis caused by the shortage of raw materials, supply chain problems or very high prices of energy raw materials, and the market of uranium companies may benefit from it. The attitude of large investors in the nuclear sector, including state institutions, also looks optimistic. Cameco Corporation is also one of the world’s largest publicly traded uranium companies. In 2015, it was the second largest uranium producer in the world, accounting for 18% of global production. Currently, one in 10 households is powered by energy supplied by Cameco. Big uranium companies stocks like Kazatomprom or Cameco still give good opportunities and prospects for investors who avoid high risk and high volatility in the market.
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As an investor in mining equities – which are a geared play on the commodities they produce – its shares have been more volatile. Yellow Cake has roughly doubled from its low price in March 2020, but Geiger Counter is up almost fivefold (from 10p to 48p) – yet down 35% from its November high. According to the International Atomic Energy Agency (IAEA), just a small amount of uranium can generate as much electricity as a massive amount of coal, making it incredibly efficient. It’s also far more common in the Earth’s crust than you might think—about 500 times more common than gold. Its price reached a decade high of US$64.50 last April because of factors like Russia’s invasion of Ukraine and increasing nuclear energy adoption. Since mid-March 2023, uranium’s spot price has steadily gained from just under US$50 per pound to reach US$58 in June.
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Nuclear energy’s role in the carbon-free future is important and one of the best alternatives to any existing technology we have now. Cameco knows how to play the uranium game, and they think long-term. They have large uranium reserves and their mines life range between years. PFS is a more advanced study of the mining area and determines the mine’s operating costs and potential profits. PEA is the basis for further exploration in the mines to determine potential profits from the mine. (If you’re just interested in the uranium supply part, please scroll down).
This is dissimilar to other raw materials such as gold, silver or crude oil, which traders can purchase and store. Learn about alternative commodities that you can take a position on. One option is the Global X Uranium ETF, which tracks national and international mining and production firms. You also have the Van Eck https://forexbroker-listing.com/ Market Vectors Uranium + Nuclear Energy ETF, a market cap-weighted index of uranium players. However, mining companies come with unique risks, including moral, political, environmental and social responsibility concerns. You may want to research to ensure that the companies you invest in align with your values.
As such URNM consists of stock of companies that are involved in the mining, exploration, development, and production of uranium, as well as companies that hold physical uranium or other non-mining assets. As I hinted earlier, the Sprott Fund has had a major role to play in the recent rally in uranium prices as it’s been buying uranium aggressively from the spot market ever since its launch in July. As of Nov. 26, the fund had accumulated nearly 41 million pounds of uranium, versus only 18.3 million pounds on July 31.
It is also used for military purposes such as powering submarines and nuclear weapons. The nuclear fuel cycle shows how uranium differs in each stage, from when it is mined, milled and enriched at the start, to when the fuel is fabricated, stored and reprocessed towards the end of the cycle. Unfortunately, uranium isn’t investment-grade in the same way that beef or gold is. While a handful of stocks and funds provide direct or indirect exposure, they also come with unique risks both in your portfolio and out. But following Japan’s announcement, it appears the world may be ready to reckon with its nuclear power concerns. With long-term demand poised to meet increased production, miners, investors and the future of green energy may be in for a sweet surprise.