Speaking in Vancouver this February, legendary commodities investor Rick Rule said 2023 might be a breakout year for uranium.
“I think the combination of reduced supply, increased demand and the fact that a lot of the overhang is now in private hands — not available for sale — means that you’re going to start seeing price response in the uranium market,” he told Investing News at a conference in Vancouver.
“You are also going to see a much firmer term market,” he said.
Well, mark Friday, September 22 as a hard market event.
According to data from ‘Uranium Markets LLC’, a nuclear fuel broker – the price of uranium ticked up $2 overnight Friday – from $67 on the spot market – to $69/lb, with an ask at $70.
John Quakes, a legendary U-Tweeter, shared the news earlier.
Ka-boom!🧨💥 Hold onto your boards #Uranium surfers!🏄♂️ There's a Spot #U3O8 Price tsunami headed for U🌊😲 as US #Nuclear fuel brokers 'Uranium Markets' have just reported a 2 buck spike to $69/lb 🎆🎇🤠 with sellers now asking $70 freakin' dollars🤯 for a new 12-year high!🌋🚀🌜 pic.twitter.com/vaeMKqDFNg
— John Quakes (@quakes99) September 22, 2023
Uranium stocks on North American exchanges began flying late morning Friday on the news.
Energy Fuels Inc (UUU) was up 7% to $4.45, Cameco (CCJ) was up 4% to $40.40, Uranium Energy Corp (UEC) was up 7.5% to $5.30, Denison Mines (DNN) up 6% to $1.68, Ur-Energy Inc (URG) was up 8% to $1.60 at 11AM in New York.
We’ve seen the spot price of uranium move up significantly in recent trading days.
The price of spot uranium was in the 50 dollar per pound range in August, by late September fuel traders were already seeing $70 – a huge move to highs not seen since 2011.
Fundamentals are now steadfastly aligned in the medium to long term, with governments embracing nuclear energy again to combat climate change and meet NetZero goals.
Financing for new plant builds is in full swing, with governments signing off on partnerships to ensure a steady stream of nuclear power for generations to come.
At the start of September, a note from analysts at Cantor Fitzgerald amplified market interest in the sector after they attended a major sector conference in London.
“In the event, a buyer was to show up looking for ~1MMlb, the order probably takes 3-4 weeks to fill and gaps the price up by $10/lb,” the analysts said in a note.
The conference led to all sorts of bullish market sentiment after it appeared the world may be facing a supply issue after years of idle uranium sector investment.
Uranium Stocks Could See Parabolic Moves
According to one analyst, Joe Mazzella, a former Managing Director and Head of Commodity Index Trading for Goldman Sachs, uranium stock investing could be about to become manic.
“The whole sector is just starting to gap and (is) going parabolic,” Mazzella said.
Mazezella is specifically focused this week Denison Mines Corp, a Toronto-based uranium exploration and development company listed on the NYSE.
Mazzella said when markets go parabolic, they can have ‘scary upsides’.
“When the markets just have that mania flow,” he said.ange
