Will uranium stocks be converted to nuclear?

Think back to 1986 and 2011. Any experienced uranium futures trader will know the importance of this period, even if most people have no idea about it. If current trends for uranium continue, 2024 could be another historic year for uranium, which normally goes unnoticed but suddenly finds its way into the headlines.

To summarize, the Chernobyl nuclear accident occurred in Russia (then the Soviet Union) in 1986 and the Fukushima nuclear accident occurred in Japan in 2011. Goes.

We could debate all day whether this “bad rap” is deserved or not, but today’s focus will be on investment opportunities. Are there any current value in recently exploded uranium stocks? Since this is a billion-dollar question, let’s start by looking at recent movements in uranium spot prices, which will naturally impact all uranium market stocks and exchange-traded funds (ETFs) in 2024.

Take an unexpected trip abroad

To understand what’s happening in the uranium and nuclear energy sector, you have to look outside of North America. It may not be a very fun trip, but when you do your due diligence, you should go wherever the action is.

Our first stop will be France, which has traditionally not been receptive to nuclear proliferation. In fact, France is one of the leading countries promoting solar, wind and other clean energy sources.

But France may be on the way to redefining clean energy sources to include nuclear power. Although difficult times require some flexibility, France’s recent change of course regarding nuclear energy is virtually unprecedented.

Believe it or not, a high-profile pro-nuclear bill is currently making its way through the highest levels of the French government. The bill provides for six to 14 new nuclear reactors and promotes “sustainable choices that use nuclear energy as a competitive, carbon-free power source.”

There is no guarantee that the bill will become the law of the land, but it is a sign that governments in Europe and elsewhere may turn to nuclear power to strengthen their energy independence. But while global demand for uranium may soon increase, it is the supply side that is really causing spot uranium prices to skyrocket.

Now is the time to visit the eastern European country of Kazakhstan, where NAC Kazatomprom, the largest uranium producer on the planet, has warned that it will find it difficult to meet its uranium production targets for 2024 and 2025. The company has not updated its production guidelines, but has observed difficulties in procuring the sulfuric acid needed to extract uranium.

Uranium: “The squeeze has begun”

So we learned two things from our unusual two-stop jaunt. First, if generally reluctant governments change their stance on nuclear power, global demand for uranium could increase. Second, major uranium producers will probably not achieve their previously stated production targets.

These factors were enough to push spot uranium prices above $100 not long ago. Accurate prices are a constantly moving target, but uranium watchers lit up social media on Monday with breathtaking posts like these: