Source: John Carnemolla / Shutterstock.com Increasingly, countries are looking to diversify away from hydrocarbons, and nuclear power as a source of clean energy seems to be gaining traction. The possibility of increase in nuclear power adoption is reflected in the price action for uranium stocks.
According to the International Atomic Energy Agency, global nuclear generating capacity was 393 GW (net electrical) in 2020. In an optimistic case scenario, global nuclear generating capacity is expected to double to 792 gigawatts by 2050 .
This would imply steady growth in demand for uranium. It’s not surprising that uranium prices have firmed up on a relative basis in the last 12 months. While I don’t expect a euphoric rally, uranium price is likely to remain in a long-term uptrend.
This is likely to be good news for uranium stocks. With several exploration and production projects on the cards, higher uranium price will boost cash flow […]
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