Uranium is a controversial commodity, but urgently needed and an opportunity for investors.
Now that Russia is no longer a uranium supplier the world can rely on, the raw material has become even scarcer. And this now, when the long downturn of the uranium market is over. A strong uranium price is supported by the fact that demand is hitting a market that has been neglected for years. Uranium mines were partially closed, and development projects lay idle. But the number of nuclear power plants around the world is growing significantly, resulting in significant uranium demand. Uranium prices should therefore continue to rise.
The importance of nuclear energy in the energy mix and in terms of reducing CO2 emissions has been recognized, for example, by the Netherlands. The operating life of one remaining power plant is being extended again. Two new nuclear power plants are also to be built, so that nine to 13 percent of the electricity mix will then come from nuclear energy. In the U.S., nearly half of uranium demand in 2021 came from Russia and Kazakhstan.
With the reversal of globalization into deglobalization, it is not only the U.S. that is striving to meet demand at home. And the newer generation reactors will become safer and more efficient and produce less nuclear waste. Not least because other coolants, rather than water, will be used for cooling. Since the uranium market is a small one, there are few uranium stocks for investors. However, the prices of the uranium companies can score points for this with more movement.
For example, Latitude Uranium (formerly known as Labrador Uranium) - https://www.commodity-tv.com/ondemand/companies/profil/labrador-uranium-inc/ - is well positioned in the uranium sector. The company's uranium projects are located in Labrador and Nunavut, two excellent uranium areas.
Uranium Energy - https://www.commodity-tv.com/ondemand/companies/profil/uranium-energy-corp/ - can score points with projects in the USA and Canada, some of which are already operational. Particular focus is on low-cost, environmentally friendly in-situ recovery projects. Uranium Energy is also well financed and has a stake in the only royalty company in the uranium sector.
Current corporate information and press releases from Uranium Energy (- https://www.resource-capital.ch/en/companies/uranium-energy-corp/ -) and Latitude Uranium (- https://www.resource-capital.ch/en/companies/latitude-uranium-inc/ -).
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