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Uncovering The New Uranium Bull Market

October 3, 2023
x min read

The price of physical uranium is on a tear, hitting its highest levels in over a decade.

And it’s ushering in a bull market for publicly listed uranium companies.

What’s happening:

  • Physical spot uranium is at its highest price in more than a decade

Why it matters:

  • There is a race for nuclear energy infrastructure underway being driven by global governments which is causing the demand for uranium to soar
  • Nuclear energy has enormous promise as a low emission, carbon free source of power for the future
  • Physical uranium is a foundational aspect of nuclear power and there is a growing dislocation between supply and demand

Who is making moves:

  • Yellow Cake (AIM: YCA) raised £103M in a oversubscribed financing to continue buying up physical uranium
  • Sprott Physical Uranium Trust (TSX: U-U) has filed a $125M CAD capital raise in order to purchase more physical uranium
  • NexGen Energy (NYSE: NXE) closed a $110M USD to fund exploration and development of their properties in the Athabasca Basin in Saskatchewan

Going deeper:

  • IsoEnergy (TSXV: ISO) just announced a merger with Consolidated Uranium (TSXV: CUR) to create one of the largest uranium companies in the world with projects in Canada and mines in the United States
  • After announcing the merger, IsoEnergy launched a $35M CAD financing
  • This is the first major merger and acquisition play for uranium public companies and could be a signal that more consolidation is coming with rising uranium spot prices

The fine print:

  • Many publicly traded uranium companies have been under funded over the past few years due to the prices of physical uranium and are now racing to find growth capital
  • In the public markets many uranium companies are early stage explorers who are yet to find a major discovery and need to raise funding based largely on speculation

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