A uranium price gain toward $85 a pound from as low as $79 is furthering gains in nuclear shares across the board.
The World Nuclear Association believes demand for uranium will double by 2040 as companies seek fresh energy sources to support technology-driven developments such as AI …”and governments pursue zero-carbon targets.”
The Global X Uranium ETF (URA) has added about 20% to its price in the past month.
I asked Jordan Trimble of Athabasca Basin uranium explorer Skyharbour Resources SYH, and Daniel Major of Zambia uranium developer GoviEx, for their briefs.
First, Jordan:
“There has been a strong rally in the uranium equities. The spot U price is moving higher, with Sprott’s Physical Uranium Trust raising money the last few weeks and purchasing pounds.
“Yellow Cake (London-YCA) is also raising $175 million to exercise their option to buy pounds from the Kazakhs, which will provide further upward pressure.”
Jordan Trimble sees a continued “sequestering” of millions of pounds — “very bullish for the (spot) price.”
Utilities and other uranium buyers have been turning to the spot market in increased numbers the past two years or more to fill inventory gaps in their supplies of the nuclear fuel.
He notes, “Seasonally (autumn) this is a strong period for the sector.”
As for Skyharbour, Jordan says, “We have lots of drilling ongoing at our Russell and Moore projects alongside various partner funded programs in our prospect generator business. Combined, we should see approximately 25,000 to 30,000 meters this year of drilling at our projects; so plenty of assays and news flow coming.”
Daniel Major at GoviEx Uranium:
— “The supply / demand remains positive as highlighted by the WNA report in September, with increasing political demand for nuclear reactors.”
GoviEx in Zambia recently submitted a draft environmental study for its Muntanga project. GoviEx is targeting commercial production for 2028.
Thom Calandra is a writer and an investor. Research and material are meant as editorial opinion. He is not a professional investment adviser. Please do not consider his reporting as a recommendation to buy or sell securities.