Price of Uranium Expected to Rally In Next 5 Years as a Shift to Nuclear Energy is Inevitable

 - FinancialNewsMedia.com News Commentary -

PALM BEACH, Fla., Jan. 11, 2022 /PRNewswire/ -- Uranium mining and the price of the metal are both poised to grow in 2022. An article from industry insider KITCO recently discussed the near and longer term outlook for the industry. It said that: "Uranium surged this year making it one of the hottest commodities in 2021. Uranium spot prices hit a nine year high in September and are up about 50 percent (at year's end). "We are starting to see countries around the world accepting nuclear energy. Those countries realize if they want to reach a carbon neutral future, nuclear energy has to be part of the equation," emphasized an executive of an industry company who spoke to Michelle Makori, Lead Anchor and Editor-in-Chief of Kitco News at the Mines and Money London conference. Standard Uranium is a Canadian uranium exploration company. Also, uranium prices skyrocketed this year, because of the launch of the Sprott Physical Uranium Trust this summer. Sprott purchased millions of pounds of uranium this year. Uranium equites and uranium ETF's also rallied significantly in 2021."  "The spot price of uranium was trailing around $34 for a long time, and then Sprott unexpectedly came into the market. Sprott started buying uranium off the spot market, which led it to a nice rally from $34 up to $51," said. "Uranium has come back down to about $46, but it's got a long way to go. The fundamentals, the big picture for the uranium market is strong. There is not enough supply out there to meet demand."   Active companies in the markets today include:  BASIN URANIUM CORP. (OTCPK: BURCF) (CSE: NCLR), Rio Tinto Group (NYSE: RIO), Denison Mines Corp. (NYSE: DNN) (TSX: DML), Cameco (NYSE: CCJ) (TSX: CCO), Skyharbour Resources Ltd.'s (OTCQB: SYHBF) (TSX-V: SYH).

The executive explained why he expects there will be big moves to the upside for uranium prices in 2022.  "There's demand coming from all over the world. China has just announced 150 nuclear reactors to be built in the next 15 years. And that's only one region. The U.S. has 95 nuclear reactors in operation,". "We now have bi-partisan support from both sides of government wanting nuclear reactors to stay operational longer, which is going to drive more demand."  The executive discussed his short and long-term outlook on uranium. "Currently, the spot price of uranium is about $46, but in the next six to 12 months, the spot price could be trading in the mid $50's to the mid $60's," Bey said.  "I would love to see it trading in the $80's to $90's over the next five years. It would allow our uranium companies to continue to finance, to do our work, and allow those mines to produce for many years and be profitable," he continued.