Higher uranium prices fuel miners' rally in 2023

Denison Mines

29/12/2023 17:13

Dec 29 (Reuters) -    ** Shares of uranium companies
rose this year, tracking the remarkable increase in uranium spot
prices
    ** Strength in prices improved revenue and profit for
producers and raised the prospects for further mine restarts and
new builds
    ** YTD, uranium prices  UXXc1  up ~87% at a 16-year price
high
    ** Shares of Canadian companies Denison Mines  DML.TO  and
Cameco  CCO.TO  have risen 49.7% and 90.6%, respectively, so far
this year
    ** U.S. companies Energy Fuels  UUUU.K  and Uranium Energy
 UEC.N  have added ~15% and 67%, respectively
    ** According to analysts, uranium demand has been primarily
driven by increased utility contracting, which provides strong
support and sustainability to higher price level
    ** Sprott Physical Uranium Trust  U_u.TO  and Global X
Uranium ETF  URA.P  will close the year with gains of 86.7% and
38.2% YTD, respectively
    ** Liberum analysts expect supply deficit of uranium of
300,000 pounds in 2024, with spot prices averaging $74.25 per
pound, as per their October forecasts 

 (Reporting by Mrinalika Roy in Bengaluru)
 ((Seher.Dareen@thomsonreuters.com;))