Uranium prices recently hit a nine-year high . It’s therefore not surprising that uranium stocks have surged.
Let’s first discuss the factors that have driven the so-called yellowcake higher.
Besides some improvement in fundamentals, there are two reasons for the uranium surge.
In July , RBC opined that social media activity has boosted uranium prices. According to RBC’s report, “uranium market fundamentals have improved only modestly in the past 6 months compared to the sharp rise in equity values.” Sprott Asset Management’s aggressive buying of uranium is another reason that has boosted prices in the recent past. The Financial Times reports that Sprott holds more than 28 million pounds of uranium , which it says is enough to power France for a year.Coming back to fundamentals, there seems to be a fear that the demand-supply gap will widen. Data from Statista indicates a potential demand of 209 million pounds of uranium concentrate […]
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