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Value of Uranium Keeps Rising as Global Demand for Nuclear Energy Grows

Value of Uranium Rising as Demand Grows for Nuclear Energy Generation Around the Globe
PR Newswire
PALM BEACH, Fla., May 17, 2022

PALM BEACH, Fla., May 17, 2022 /PRNewswire/ — FinancialNewsMedia.com News Commentary – It is no surprise that most ex…

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Value of Uranium Rising as Demand Grows for Nuclear Energy Generation Around the Globe

PR Newswire

PALM BEACH, Fla., May 17, 2022 /PRNewswire/ — FinancialNewsMedia.com News Commentary – It is no surprise that most experts expect the price of uranium to increase in this year of turmoil around the globe, as sure as gold will rise. Uranium is one of the few commodities that has seen two years of solid gains in the midst of the coronavirus pandemic, which most analysts believe indicates that the metal’s price is not dropping any time soon. However, on the supply side, current supply of the metal cannot meet demand. It is expected that constrained supply will push the price of uranium even higher this year. An article in Mining News Wire said that last year, the price of uranium rose by 45%, going from about $29 per pound at the start of the year to $50 per pound in September. This increase followed growth in 2020, which saw uranium go from $24 in January to $30 by year’s end. Despite not being able to maintain that $50 level, the value of the energy fuel has remained at about $40 since then.  The article added: “IndependentSepculator.com CEO and founder Lobo Tiggre stated in an interview that unlike the 2007 uranium price surge, which saw uranium hit $139 from $45 in a single year, the current surge in price would be affected by a number of factors. Tiggre, who expects uranium to settle between $60 and $70 this year, explained that in 2007, no companies and funds were voluntarily holding back cheap supply and sitting on significant amounts of uranium.  Now, however, he noted that the presence of funds such as ANU Energy OEIC and the Sprott Physical Uranium Trust, which has bought more than $1 billion of uranium since last year, could serve as a price headwind or a catalyst. The ANU Energy OEIC is a physical uranium fund that was launched last year by Kazatomprom, Kazakhstan’s primary uranium producer.”   Active mining companies in the markets this week include Traction Uranium Corp. (OTCQB: TRCTF) (CSE: TRAC), Uranium Energy Corp (NYSE: UEC), Cameco (NYSE: CCJ) (TSX: CCO), Energy Fuels Inc. (NYSE: UUUU) (TSX: EFR), Denison Mines Corp. (NYSE: DNN) (TSX: DML).

Mining News continued: “Nuclear Energy Institute VP of public affairs and policy development John Kotek stated that nuclear was the second biggest source of carbon-free electricity, making up 10% of total electricity produced around the globe. Kotek explained that while this figure wouldn’t change significantly in the short term, the interest in new nuclear constructions combined with decarbonization efforts increased expectations that nuclear’s share would grow in the long term. This outlook is backed by the increase in demand for clean energy, particularly the need for carbon-free power.  An analysis conducted by the International Energy Agency, the Organization for Economic Co-operation and Development, the International Atomic Energy Agency and other organizations also found that global nuclear generation capacity will have risen substantially by 2050, which supports Kotek’s expectation. This increase will be facilitated by the coming online of new reactors, which will join the already operating global fleet.  Needless to say, the increased nuclear energy generation capacity around the world will have a beneficial effect upon the value uranium extraction companies…”

Traction Uranium Corp. (OTCQB: TRCTF) (CSE: TRAC) BREAKING NEWS:  Traction Uranium announces mobilization of drill rig to Lazy Edward Bay property and commencement of 2022 summer drilling program – Traction Uranium Corp. (the “Company” or “Traction”), a mineral exploration issuer focusing on the development of discovery prospects in Canada, including its two flagship uranium projects in the world-renowned Athabasca Region, is pleased to announce that mobilization is underway for the Lazy Edward Bay summer drilling program. Located near the southern edge of the Athabasca Basin, the targets are at relatively shallow depths, with the Athabasca sandstone ranging to depths of approximately150 m where present.

Fission 3.0 Corp. (“Fission 3‘) will conduct the work program in accordance with the terms of the Option Agreement between Traction and Fission 3, whereby Traction can acquire up to a 70% interest in the Lazy Edward Bay property. (see Dec 10, 2021 Traction news release.)

Historic work at Lazy Edward Bay has identified prospective geology with a number of favourable indicators for uranium mineralization. The two main NE -trending conductive corridors on the property are referred to as the western Horse Trend and the eastern Liberty Trend. The western portion of the property captures most of the conductive Horse Trend, along with historic drill holes LE-72 and LE-73 that were drilled by Uranerz Exploration and Mining Limited in the 1980’s. Drill hole LE-72 is reported to have intersected strongly altered basement rocks returning up to 170 ppm uranium in a brecciated and sheared basement structure. LE-73 reported strongly bleached and fractured, in part limonitized, sandstone throughout its entire length with entirely clay-filled fault gouges in the lower part of the sandstone with up to 550 ppm boron, underlain by strongly clay altered, faulted and graphitic basement rocks with up to 40 ppm uranium and 420 ppm boron. Claims in the eastern portion of the property cover part of the conductive Liberty Trend, where nearby historic drill hole LE-001 was reported to intersect 224 ppm U3O8 over 0.5 m. Traction summer drilling is planned along section, and along strike from these encouraging historic drilling results.

Lester Esteban, Chief Executive Officer, stated “We are really looking forward to ground delivering on our $1.5M program at Lazy Edward Bay. Past historical drill work returned many geological anomalies such as elevated levels of uranium and boron along with strongly altered basement rocks which represent a number of favorable indicators for uranium mineralization. The program is helicopter supported and plenty of pre-planning work was needed to be done ahead of mobilization. I commend our team in getting everything in place ahead of time and on schedule for our maiden drill program at Lazy Edward Bay.”  CONTINUED Read this full press release and more news for Traction Uranium at:  https://www.financialnewsmedia.com/news-trac/  

Other recent developments in the mining industry of note include:

Uranium Energy Corp (NYSE: UEC) recently reported that it has now secured an additional 400,000 pounds of U.S. warehoused uranium, expanding its physical uranium program to 5 million pounds U3O8, with delivery dates out to December 2025 at a volume weighted average price of ~$38 per pound. UEC’s physical uranium program represents an unrealized gain of over $125 million based on the current spot price published by TradeTech on April 19, 2022, at $63.25 per pound U3O8.

Amir Adnani, President and CEO stated: “A year ago, UEC launched a physical uranium portfolio with 500,000 pounds purchased at a uranium cost basis of less than $30 per pound. The Company has grown the size of our inventory over ten-fold to 5 million pounds by making well-timed purchases near cycle lows that allow us to maintain a low-cost portfolio of ~$38/lb with spot uranium now trading at over $63/lb. At a time of heightened geopolitical uncertainty, UEC has the benefit of secure U.S. warehoused physical inventories. We have also staged our deliveries to receive uranium as far out as December 2025, providing a low-cost stream of physical uranium as we enter this uranium bull market that shows a major structural supply deficit exceeding 215 million pounds by 2026.”

Cameco (NYSE: CCJ) (TSX: CCO) and Orano Canada Inc. (Orano) have recently reached agreement with Idemitsu Canada Resources Ltd. (Idemitsu) to acquire Idemitsu’s 7.875% participating interest in the Cigar Lake Joint Venture. Upon closing, Cameco’s ownership stake in the Cigar Lake uranium mine in northern Saskatchewan will increase by 4.522 percentage points to 54.547%, while Orano’s share will rise by 3.353 percentage points to 40.453%. TEPCO Resources Inc. retains the remaining 5% interest in the property.

“As the world’s largest high-grade uranium mine, Cigar Lake is quite simply one of the best and most prolific uranium producing assets on the planet,” said Cameco president and CEO Tim Gitzel. “Cameco is very pleased to increase our ownership stake in this outstanding tier-one operation. As the operator of Cigar Lake since 2002, it’s an asset we know incredibly well. It’s a proven, permitted and fully licenced mine in a safe and stable jurisdiction that operates with the tremendous participation and support of our neighbouring Indigenous partner communities.”

Energy Fuels Inc. (NYSE: UUUU) (TSX: EFR) recently announced that during the week of April 4, the Company’s White Mesa Mill located near Blanding, Utah (the “Mill“) made three (3) commercial shipments of three (3) critical mineral products. During that week, Energy Fuels shipped:

Natural uranium concentrates (“U3O8“) to the Metropolis Works uranium conversion facility in Metropolis, Illinois for conversion into uranium hexafluoride which will be enriched and used as fuel for the production of clean, carbon-free nuclear energy;

Vanadium pentoxide (“V2O5”) to the Bear Metallurgical Company in Butler, Pennsylvania for conversion to ferrovanadium (“FeV”) which will be sold into the steel and specialty alloys industries; and High-purity mixed rare earth element (“REE”) carbonate (“REE Carbonate”) to Neo Performance Materials’ (“Neo’s”) Silmet facility in Estonia for separation into advanced REE products. The REE Carbonate had undergone partial separation at the Mill using existing Mill facilities prior to its delivery to Silmet, which is the first commercial-scale REE separation to occur in the U.S. since at least the early-2000’s (to the Company’s knowledge).

Denison Mines Corp. (NYSE: DNN) (TSX: DML) recently filed its Condensed Consolidated Financial Statements and Management’s Discussion & Analysis (‘MD&A’) for the quarter ended March 31, 2022. Both documents will be available on the Company’s website at www.denisonmines.com or on SEDAR (at www.sedar.com) and EDGAR (at www.sec.gov/edgar.shtml). The highlights provided below are derived from these documents and should be read in conjunction with them. The Company’s results reflect earnings attributable to Denison shareholders of $0.05 per share for the quarter ended March 31, 2022 – including mark-to-market gains of $47.8 million on the Company’s investment in 2.5 million pounds U3O8 of physical uranium holdings. All amounts in this release are in Canadian dollars unless otherwise stated. View PDF

David Cates, President and CEO of Denison commented, “Our results from the first quarter of 2022 reflect further improvements in the uranium market, as well as an active start to the year for the Company’s Wheeler River and McClean Lake projects.

The spot price of U3O8 increased by nearly 40% during the first quarter, reflecting the relative scarcity of discretionary uranium holdings available to the spot market amidst an environment of significant geopolitical uncertainty, which drove a substantial increase in the value of Denison’s physical uranium holdings and the Company’s earnings per share of $0.05. Denison remains committed to holding its physical uranium position for the long-term as both a means to enhance our shareholders’ exposure to the uranium market and a tool for the future financing of the development of the Wheeler River project.

DISCLAIMER:  FN Media Group LLC (FNM), which owns and operates FinancialNewsMedia.com and MarketNewsUpdates.com, is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels.  FNM is NOT affiliated in any manner with any company mentioned herein.  FNM and its affiliated companies are a news dissemination solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security.  FNM’s market updates, news alerts and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities.  The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material.  All readers are strongly urged to perform research and due diligence on their own and consult a licensed financial professional before considering any level of investing in stocks.  All material included herein is republished content and details which were previously disseminated by the companies mentioned in this release.  FNM is not liable for any investment decisions by its readers or subscribers.  Investors are cautioned that they may lose all or a portion of their investment when investing in stocks.  For current services performed FNM expects to be compensated forty five hundred dollars for news coverage of the current press releases issued by Traction Uranium Corp. by a non-affiliated third party.  FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.

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