Why Uranium Stocks Are Climbing Today
Shares of several uranium companies, including Cameco Corporation (NYSE:CCJ) and Uranium Energy Corp. (AMEX:UEC), are climbing Friday after Kazatomprom, the largest uranium producer in the world, said it is likely to experience a production shortfall, which has weighed on supply outlook.
The Details:
Kazatomprom warned that a shortage of sulphuric acid was impacting its production, kicking off a surge in the price of uranium which is up to around a 15-year high of $92.50 a pound.
The company projected that it will miss its production goals for the next two years, but it is committed to meeting contractual obligations towards all existing customers throughout 2024. The company said its 2025 production plans are subject to "considerable supply chain risks” and it will release a detailed assessment of the scale of any shortfall by the end of January.
The news of reduced uranium production comes amid a rise in demand for uranium as many countries have revived nuclear energy plans as part of the renewable energy movement.
Shares of Energy Fuels Inc. (AMEX:UUUU), a Canadian uranium miner, and Uranium Royalty Corp. (NASDAQ:UROY), which gains exposure to uranium prices through investments in uranium interests and through holdings of physical uranium, are also moving higher on the news.
Related News: As Spot Uranium Climbs To New Highs, Cameco Struggles To Regain Its Footing
CCJ, UEC, UUUU, UROY Price Action: According to Benzinga Pro, shares of Cameco are up 8% at $50.42, shares of Uranium Energy are up 10% at $7.63, Energy Fuels shares are up 8% at $7.62 and Uranium Royalty shares are up 13.6% at $3.09 at the time of publication.
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