Uranium supply lags behind demand

Although uranium production this year is expected to be about eight percent higher than last year, so that about 143 million pounds of uranium will come out of the mines. But demand is estimated at 181 million pounds, much higher. Several projects are restarting, moving forward, but there will still be a deficit. Commercial stockpiles can still fill that gap. The uranium deficit is forecast to widen, with a production gap of about 345 million pounds of uranium expected by 2030. This creates the potential for higher uranium prices. The fact that uranium prices have been low for a long time has had an impact on the uranium mining community. There are still supply chain issues and requirements around financing and permitting. This could lead to a delay in some projects. Already, a trend toward developing smaller deposits and deposits with lower uranium grades is emerging. Inflation and higher salaries lead to higher production costs. This must be factored into uranium prices.

Last year, the uranium shortfall was about 55 million pounds; for this year, it is projected to be 38 million pounds of uranium. Currently, a pound of uranium costs $50.65, up from $42 at the end of 2022 and $30 per pound at the end of 2021. Uranium prices are driven by real demand, and this should continue for the longer term. That’s when investors should still look to uranium stocks, perhaps from Consolidated Uranium or Labrador Uranium.

Labrador Uranium – https://www.commodity-tv.com/play/mining-newsflash-with-with-victoria-gold-gold-terra-tinone-resources-canada-nickel-labrador-uranium-and-mag-silver/ – owns a large land package (152,000 hectares of land) in the Central Mineral Belt in Labrador. The Company has just acquired another large high-grade property in Nunavut, Canada.

Consolidated Uranium counts uranium projects in Australia, Canada and Argentina among its properties. Good assay results are available.

Current corporate information and press releases from Labrador Uranium (- https://www.resource-capital.ch/en/companies/labrador-uranium-inc/ -) and Consolidated Uranium (- https://www.resource-capital.ch/en/companies/consolidated-uranium-inc/ -).

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