Uranium Market

  • Global energy demand is rising rapidly and nuclear reactors are being built to match that demand
  • Japanese reactors continue to come online – currently 9 and could rise to 20 in the next 12 months
  • Environmental groups are beginning to agree that nuclear energy is the safest and cleanest base load energy source
  • Supply disruption on multiple fronts will drive uranium prices higher
  • World’s largest Uranium companies (KazAtomProm&Cameco) are cutting production due to the low spot price of uranium
  • New Uranium fund – Yellow Cake IPO
  • USA government supporting nuclear energy and considering legislation to force American utilities to buy American uranium
  • Uranium spot price has seen 14% increase in the last 50 days, signalling potentially the start of the next uranium price spike
The beauty of buying at this point in the cycle is, we don’t have to be precisely correct – we just have to be generally correct. . .
What I mean is: since uranium prices are still very low, and uranium producers are even lower – there isn’t much downside risk from here.

– Palisade Research