There Seems to be a Perfect Storm in Favor of Uranium Investors
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points form the article:
- reduced output as many mining operations were discontinued,
increased demand as new reactors are in the planning stages, and
large physical investments in uranium, which take it off the
market to generate electricity.
- production fell to 123 million pounds in 2020, the lowest level
since 2008. Current production falls short of global uranium
demand, which is around 180 million lbs and expected to grow.
- Bringing new mines online, particularly within this highly
regulated industry, with dangerous materials, and heightened
environmental consciousness will be slow.
- Sprott Physical Uranium Trust (OTC:SRUU.F).
- Additionally, the U.S. is investing in a strategic uranium
reserve. This is expected to pull U308 from mining production in
the U.S. The 2021 proposed federal budget includes $150 million
for the creation of a U.S. uranium reserve over the next ten
years. While this can serve to stabilize prices down the road,
initially, it will be competing for a scarce resource from U.S.
based mining companies
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