Uranium have fallen, but the brokerage firm PGM Global sees the commodity as a long-term investment.
Uranium prices hit a 16-year high in January of around $106 a pound after Kazatomprom—Kazakhstan’s state uranium company—said it might not be able to produce as much of the metal as it had planned. It cited problems obtaining sulfuric acid, used in processing uranium ore, as well as construction delays at newly developed deposits.
On…
Uranium have fallen, but the brokerage firm PGM Global sees the commodity as a long-term investment.
Uranium prices hit a 16-year high in January of around $106 a pound after Kazatomprom—Kazakhstan’s state uranium company—said it might not be able to produce as much of the metal as it had planned. It cited problems obtaining sulfuric acid, used in processing uranium ore, as well as construction delays at newly developed deposits.
On Thursday, uranium closed at $83.65, down 11% for the month, according to Dow Jones Market Data.
PGM Global expects a recovery. “The global trend towards nuclear power suggests uranium is in a long-term bull market,” PGM Global said in a research note on Friday.
Uranium producer
said on its fourth-quarter earnings call last month that climate change remains “top of mind, which truly puts nuclear in the spotlight.” Nuclear reactors can generate electricity without emitting greenhouses gases.
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“There’s a growing consensus that there is no net zero without nuclear and 28 countries have now signed on to an international declaration that calls for a tripling of nuclear energy capacity by 2050,” Cameco Chief Executive Timothy Gitzel said on the call.
“The long-term pipeline for nuclear power is bright,” PGM Global said. “…as Western governments try to diversify their uranium purchases away from Russia and Kazakhstan, many companies are signing contracts at premium prices.”
Write to Angela Palumbo at angela.palumbo@dowjones.com
