Investors should heed growing supply after uranium’s recent runup – by James Cooper (Northern Miner – June 10, 2024)

Global mining news

Uranium prices surged from just over US$50 per lb. in April 2023 to more than US$100 per lb. by January 2024. Since then, there has been a moderate pull-back; uranium is now consolidating just above US$90 per pound.

So is it too late for investors to join the uranium bandwagon? Well, that depends. Last year’s terrific run was driven by strong demand outlooks. Uranium, the fuel for nuclear reactors, has benefitted from renewed interest in building global nuclear capacity. That’s partly due to the push to go green.

Here, nuclear power offers baseload power that’s carbon-free and reliable. Whether night or day, cloudy or windless, nuclear provides uninterrupted power. But there’s another important side to the nuclear story: costs are rising. Despite central bankers’ claims to the contrary, inflationary pressures continue to loom.

Rising tariffs and trade tensions between the world’s two largest economies, China and the United States, threaten to bifurcate global trade. This is highly inflationary and occurs just as the U.S. ramps up broad trade embargoes against Russia, one of the world’s most resource-rich countries.

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