Jocelyn Aspa reports that the uranium price has soared 30% since the start of 2017 and is now at approximately $26 per pound U3O8. In addition to the apparently good news coming from the new administration, other countries also have plans to invest in nuclear energy, and FocusEconomics concludes that as more nuclear reactors come online around the world, excess uranium supply will ease, providing even more price support.
In total, over 60 nuclear reactors are currently under construction in 15 countries around the world (mostly in China and India), while 440 are now operating in 31 countries. Additionally, South Africa, which holds the only nuclear power station in Africa, is looking to increase its use of nuclear energy while stepping back from coal-fired plants. According to Reuters, close to 30 companies have expressed interest in the SA plans to build nuclear reactors.
Leigh Curyer, CEO of NexGen Energy, a major uranium mining company that controls large, high-grade uranium deposits in western Canada, recently commented that nuclear power is undergoing quite a resurgence. He also said that lot of countries are recognizing that nuclear power is the baseload supply of electricity that is emissions-free....certainly not wind or solar energy, which when installed, cost much more and are not reliable sources of energy for baseload power compared to nuclear energy plants.
FocusEconomics expects the uranium price to average $29.90 in the 4th quarter of 2017, and is calling for it to average $36.50 in the latter part of 2018. While those periods are still some time away, the uranium outlook is now more promising than it has been since early 2011.
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