After reaching a 17 year high of US$106 in early January, the spot uranium price spent most of Q2 consolidating under US$90 per pound.
Uranium started the second quarter at US$88.05 per pound on April 1 prices shed 2.6 percent to end the quarter at US$85.70. While prices remained range bound for most of 2024’s second quarter, values have held above US$80 per pound since November 2023.
White went on to note that the recent pause in uranium prices offers a promising entry point in the ongoing uranium bull market.
The ETF Product Manager at Sprott Asset Management sees market support coming from persistent supply uncertainties and renewed nuclear energy interest.
Year-to-date gain: 163.83 percent; market cap: C$20.68 million; share price: C$1.24
Greenridge’s share price has climbed throughout the year to reach a year-to-date high of C$1.25 on July 3.
Year-to-date gain: 93.75 percent; market cap: C$40.15 million; share price: C$0.31
District Metals is an energy metals and polymetallic explorer and developer with a portfolio of nine assets, including five uranium projects in Sweden. It’s currently focused on its Viken property, which hosts a uranium-vanadium deposit.
Historic estimates conducted in 2010 and 2014 peg the indicated resource at 43 million metric tons with an average grade 0.019 percent U3O8, with another 3 billion metric tons with an average grade 0.017 percent U3O8 in the inferred category. According to the company, Viken is one of the “world’s largest in terms of uranium and vanadium mineral resources.”
“We are very pleased with the timely approvals for our eight mineral license applications that cover a total of 91,470 hectares of ground that is highly prospective for Alum Shale deposit targets,” said Garrett Ainsworth, CEO of District. “Alum shales are the host rocks of our Viken Energy Metals Deposit, which represents a potentially significant source of critical and strategic metals and minerals for the green energy transition.”
Year-to-date gain: 50.65 percent; market cap: C$90.03 million; share price: C$0.58
CanAlaska Uranium is a self-described project generator with a portfolio of assets in the Athabasca Basin. The region is well known in the sector for its high-grade deposits.
Year-to-date gain: 21.37 percent; market cap: C$2.53 billion; share price: C$2.84
Denison Mines is focused on uranium mining in Saskatchewan’s Athabasca Basin, holding a 95 percent interest in the Wheeler River uranium project.
In 2023, the company completed a feasibility study for Wheeler River’s Phoenix deposit, at which they plan to use in-situ recovery (ISR), and updated the 2018 prefeasibility study for the Gryphon deposit. According to the company, both deposits have low-cost production potential.
Denison shares rose to a year-to-date high on May 28 to trade for C$3.31.
Year-to-date gains: 18.5 percent; market cap: C$29.7 billion; share price: C$68.02
Uranium major Cameco operates across the entire nuclear fuel value change and holds significant stakes in key uranium operations within the Athabasca Basin of Saskatchewan, Canada. This includes a 54.55 percent interest in the Cigar Lake mine, the world’s most productive uranium mine.
The company also owns 70 percent of the McArthur River mine and 83 percent of the Key Lake mill. Orano Canada is Cameco’s primary joint venture partner across these operations.
Looking ahead, the company expects operations at McArthur River/Key Lake and Cigar Lake are expected to produce a total of 18 million pounds each in 2024.
The trio will also explore ways to create a local nuclear supply chain, including fuel production, collaborating on research and workforce training with Saskatchewan’s institutions. SaskPower aims to make a final investment decision on constructing Saskatchewan’s first SMR facility by 2029, with plans to use the province’s uranium in the reactors.
Because of this necessity, uranium enrichment facilities are closely monitored under international agreements. Uranium used for nuclear power production only needs to be enriched to 5 percent; nuclear enrichment facilities need special licenses to enrich above that point for uses such as research at 20 percent enrichment.
The metal is also used in the medical field for applications such as transmission electron microscopy. Before uranium was discovered to be radioactive, it was used to impart a yellow color to ceramic glazes and glass.
The country with the greatest uranium reserves by far is Australia — the island nation holds 28 percent of the world’s uranium reserves. Rounding out the top three are Kazakhstan with 15 percent and Canada with 9 percent.
Although Australia has the highest reserves, it holds uranium as a low priority and is only fourth overall for production. All its uranium output is exported, with none used for domestic nuclear energy production.
Canada’s uranium reserves are found primarily in its Athabasca Basin, and the region is a top producer of the metal as well.
Investors should always do their own due diligence when looking at any commodity so that they can decide whether it fits into their investment plans. With that being said, many experts are convinced that uranium has entered into a significant bull market, meaning that uranium stocks could be a good buy.
Uranium prices are very important to uranium miners, as in recent years levels have not been high enough for production to be economic. However, in 2024, prices spiked from the US$58 in August 2023 to a high of US$106 per pound U3O8 in February 2024. They have since consolidated at around US$85, meaning this could be a buying point for those looking to get into the sector.
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
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