Will a uranium recovery stick this time?

Morgan Stanley is tipping a short-term (spot market) uranium price of $US48.50/lb in 2024, with long term contracts far higher. A fresh wave of optimism is washing across Australian uranium explorers as nuclear power stakes a claim in the drive to decarbonise the world, but a second wave of genuine demand from power utilities is required to make the recovery stick.

There’s a lot in that opening comment which is based on the sharp share price rises by most uranium explorers with stocks such as Deep Yellow, Boss Energy, Elevate Uranium and Lotus Resources up by more than 50% since January.

The first point to consider is that the uranium industry has been here before, tantalising investors with spectacular price rises, such as the three-year boom from 2005 to 2008 when the price rocketed up by more than 400% from US$34 a pound to US$140/lb.

Then, a crisis in Japan dented confidence […]

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