Uranium does the same as the fossil fuels oil, gas and coal. It’s getting more and more expensive. One kilogram of uranium oxide currently costs almost $ 110, an increase of around 70% since August, and a level that the raw material has rarely reached. Fund companies that buy physical uranium and investors who are invested in the few listed uranium producers benefit from this.
The largest producer with a market share of more than 20% is the Kazakh company Kazatomprom. The former state-owned company has been listed in London and Nur-Sultan since 2018. Since the beginning of the year, the value of the securities has more than doubled from $ 16 to $ 38 (+ 144%). In second place is the Canadian company Cameco, whose titles also advanced significantly (+ 90%). The company, which in addition to uranium also offers services to companies in the nuclear power and nuclear industries, operates uranium mines in Canada, Kazakhstan and the USA. Paladin Energy from Australia also recorded a marked increase in price (+ 238%) and is listed in Canada and Namibia as well as in its home country. One of the course winners is also NexGen Energy (+ 101%), which in turn comes from Canada and, like competitor Cameco, is active in the Canadian province of Saskatchewan.
Uranus and Superzyslus?
The current uranium price rally, which some market observers are already calling the start of a super cycle, is in part a consequence of the scarce supply. The mines, which have scaled back their capacities due to the low prices, are currently unable to meet the demand from the operating nuclear power plants. But this situation is not new. The gaps have so far been filled with stocks, reprocessed uranium or material from disarmed warheads without causing price jumps.
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