Uranium market undersupplied since 2018

The marginal costs of production led to a decline in supply and ultimately to an undersupply. For a long time, no particular attention was paid to this, as considerable stocks were built up in the period after Fukushima. However, stocks are emptying, and uranium is in higher demand and more expensive than it has been for a long time. And the future seems bright for uranium producers.

Since the UN Climate Change Conference in Dubai (COP 28) it has been clear that many industrialized countries are committed to doing without fossil fuels. And this renunciation can only be achieved with nuclear power. 22 nations have agreed to triple their nuclear capacity by 2050, because clean energy systems are necessary. The fact that the world is returning to nuclear energy for compelling reasons is shown by the performance of uranium as a raw material. It was one of the best performers in 2023 and also got off to a strong start in 2024. Nuclear energy supplies electricity without greenhouse gas emissions and generates reliable base load energy with a high level of security. We saw in 2022 during the energy crisis that an insecure energy supply can threaten the economy and national security.

The shift back to nuclear energy leads to uranium scarcity. The price will naturally adjust to this imbalance and uranium companies will also become more valuable. Technological advances such as the nuclear technology of small modular reactors (SMSs) will also further fuel the demand for uranium. Eventually, they can be used to power smaller cities, both for electricity generation and for the production of industrial heat. Energy policy and the long lead times of these projects should support the uranium price over the next 10 or 20 years. A positive outlook for uranium companies.

If you like diversification and uranium, you can take a look at Uranium Royalty – https://www.commodity-tv.com/ondemand/companies/profil/uranium-royalty-corp/ -. It is the only royalty company in the uranium sector. In addition to royalties and streaming agreements, Uranium Royalty owns physical uranium.

Premier American Uranium – https://www.commodity-tv.com/ondemand/companies/profil/premier-american-uranium-inc/ – has promising uranium projects in Wyoming and Colorado.

Current company information and press releases from Uranium Royalty (- https://www.resource-capital.ch/en/companies/uranium-royalty-corp/ -) and Premier American Uranium (- https://www.resource-capital.ch/en/companies/premier-american-uranium-corp/ -).

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