It has been just over a decade since the Fukushima disaster and the nuclear-fuel industry is cautiously betting prospects for its products have finally recovered.
Some of the optimism can already be seen in the share price of Canadian company Cameco, one of the largest miners of uranium behind No. 1 producer Kazatomprom, a state-run company in Kazakhstan. Cameco’s U.S.-listed shares have risen almost 180% over the past year, to levels not seen since 2014.
The last time Cameco saw year-over-year net income growth was 2015, when the spot price of uranium oxide hovered above $35 a pound for most of the year. Since then, the commodity’s price has mostly stayed below $30 a pound, though it seems to be recovering quickly.
As of Monday, the spot price was $29.60 a pound, up 7.3% in one week, according to data from nuclear fuel market research firm UxC. Uranium is mostly sold on contracts with utilities rather than via the spot market.
Jonathan Hinze, president of UxC, notes that among nonsubsidized mines, the all-in cost of production can range anywhere from $10 a pound up to $38 a pound.
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