Uranium Nov. 20: A 15-Year High

November 20, 2023 10:53 AM PST

The uranium rally continues apace, so today, we'll be focusing solely on U3O8 updates.


Spot prices continue to surge

Everyone's favourite uranium personality John Quakes @quakes99 posted his weekly update to the market this morning:

Based on these numbers compared to Cameco's price chart, uranium is up 66% year-to-date, and up 32% since the end of the summer. This is a kind of surge we haven't seen for the radioactive metal for a long time, and puts it at a 15-year high.

Many high-profile uranium miners have kept pace—and many haven't

This excerpt from a thread from Harry Chris @hchris99 shows how prominent companies have compared to the surge in the uranium price.

"A few notes to add to this. Both CCJ and KAP pay a dividend, with KAP's being very significant to the returns. The table did not include these amounts. The worst, GLO, has had its stock price cut due to the coup in Niger.

Only two companies are generating any mining cash flow.

The list of 15 is split about even, with 7 exceeding the spot price of uranium, and 8 below. If you're thinking that I should have just bought SPUT, I can appreciate that. However, the impact of significantly higher interest rates has no doubt had a dampening effect on returns."

Political support for nuclear power is at a high in the U.S.

This one is self-explanatory. This trend has continued into 2023, showing the growing base of political support for nuclear power in the U.S.\

More importantly, the U.S. also announced that at COP28 it will be pledging to triple nuclear capacity by 2050.

The roadmap for the plan says "Multiple system level decarbonization modeling exercises over the last two years have concluded that, especially with estimates for renewables buildout that account for limitations from transmission expansion and land use, significant new nuclear power would be required by 2050."

India is climbing on board the nuclear train as well

India, too, has pledged to increase its nuclear base, commissioning 20 new reactors by 2013, tripling its nuclear capacity.

There is so much going on in the nuclear market it can be difficult to keep track! We'll keep providing you with weekly updates to keep you informed. Stay tuned next week for another info roundup!


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