Why is uranium stock dropping? (2024)

Why is uranium stock dropping?

Uranium Energy (UEC) reports lower revenues and earnings in the second quarter of fiscal 2024 due to the lack of sales of uranium inventory and higher exploration and development expenditures.

Why are uranium shares going down?

The slight miss in earnings and disappointing production performance was likely the reason for the 5% sell off in Cameco's shares post-announcement, but news of significant expansion plans, as well as a substantial increase in reserves (from resources) at Cigar Lake, was the likely catalyst for a 3.3% fall in the ...

Are uranium stocks a good buy?

Few stocks have huge, decade-long growth runways, but that's exactly what you're getting here. You won't be a millionaire overnight, but regular investments into Uranium Energy stock over the long term could help your portfolio surpass the $1 million mark.

What is going on with uranium?

Thanks to new interest in expanding nuclear power, the price of uranium is on a tear, making undeveloped and long-shuttered mines viable. Pinyon Plain, which has some of the highest-grade uranium ore in the country, is one of the first uranium mines to open in the United States in eight years. It will not be the last.

Will uranium stocks go up in 2024?

Uranium prices are very important to uranium miners, as in recent years levels have not been high enough for production to be economic. However, in 2024, prices spiked from the US$58 in August 2023 to a high of US$106 per pound U3O8 in February 2024. At this price level, uranium stocks remain highly undervalued.

What is the future of uranium stocks?

Uranium stocks are shares in companies that are involved in the mining and extraction of uranium, or in exploring or developing uranium deposits. Demand for uranium in nuclear reactors is expected to climb 28% by 2030 and nearly double by 2040 as governments ramp up nuclear power capacity to meet zero-carbon targets.

What are the predictions for uranium stocks?

The average price target for Uranium Energy is $10.21. This is based on 4 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $13.00 ,the lowest forecast is $7.60. The average price target represents 62.58% Increase from the current price of $6.28.

Is uranium the next big thing?

A global push to deliver a faster and cheaper clean energy transition is tipped to push uranium prices even higher as governments embrace the nuclear fuel to meet aggressive carbon emission reduction targets.

Who buys the most uranium?

Uranium consumption is the highest in the United States, China, and France, which are the world's leading nuclear energy producers. However, Kazakhstan and Canada are among the top global producers of uranium with around 21,227 metric tons and 7,351 metric tons produced in 2022, respectively.

Who is buying uranium?

Investor buying of physical uranium by publicly-traded funds and hedge funds represented nearly 15 million pounds of uranium oxide concentrate (U3O8), or about 26% of the total traded on the spot market in 2023, according to consultancy UxC.

Will uranium ever recover?

It is now primarily used as fuel for nuclear reactors that make electricity. Uranium can be recovered in two ways: by conventional mining of the rock (ore), or by using strong chemicals to dissolve uranium from the rock that is still in the ground and pumping it to the surface.

What is the outlook for uranium in 2024?

The team of analysts has increased their uranium spot price price targets to $105 per pound in 2024 and $115 in 2025. They outlined three near-term catalysts that could propel prices higher: Higher electricity prices make higher uranium prices more absorbable. Investment fund volumes continue to increase.

Will the US run out of uranium?

The demand for uranium continues to increase, but the supply is not keeping up. Current uranium reserves are expected to be depleted by the end of the century, and new sources of uranium are hard to find.

What stock will boom in 2024?

What is the long term forecast for uranium?

Despite supply-side challenges, uranium demand continued to expand in 2023 and is poised for significant growth in the coming years. The World Nuclear Association (WNA) forecasts robust demand for reactor-grade uranium, with reactor requirements projected to nearly double by 2040 compared to 2023 levels.

How many years will uranium last?

The world's present measured resources of uranium (6.1 Mt) in the cost category less than three times present spot prices and used only in conventional reactors, are enough to last for about 90 years. This represents a higher level of assured resources than is normal for most minerals.

Why buy uranium?

Uranium (UXM24) is an essential fuel required to power nuclear reactors, making uranium mining stocks quite attractive right now. Industry forecasts suggest the global uranium market size could grow to $3.27 billion in 2027, up from $2.65 billion in 2021.

Why are uranium stocks hot?

Amid increased interest and investment in nuclear power in many countries around the world, uranium has the potential to be an attractive long-term investment.

What is the uranium stock boom?

Uranium prices have been on the rise over the past several years. At the start of 2017, it was around $18 a pound. By mid-2020, uranium was about $33 a pound. Today, it's more than $100 a pound. And that has a lot of mining companies announcing new operations, or reactivating existing ones.

What will the price of uranium be in 2025?

The World Nuclear Association estimates the commodity's price would have to rise above $100 a pound and stay there for a while to have a considerable impact on operating costs. BofA Global Research forecasts that spot uranium prices will reach $105 a pound this year and $115 a pound in 2025.

What is the new replacement for uranium?

A thorium fuel cycle can offer several potential advantages over a uranium fuel cycle—including the much greater abundance of thorium found on Earth, superior physical and nuclear fuel properties, and reduced nuclear waste production. One advantage of thorium fuel is its low weaponization potential.

Is uranium demand growing?

This discrepancy explains why uranium prices have rarely exceeded $80, and few mines can make a profit at such low prices. As a result, capacity is now limited, while demand is rising rapidly and is expected to increase by 27% between now and 2030.

Is uranium demand going up?

Globally uranium demand is expected to rise by 28% by 2030 and to double by 2040.

How much uranium can you legally own?

You are allowed to own up to one ton of natural Uranium ore minerals in the United States. There is no limit on activity as long as the samples are naturally occurring minerals.

Where does USA get its uranium?

A Russian concern purchased a Canadian company that controls 20 percent of U.S. production. None of that production can leave the country. The U.S. imports the vast amount of our uranium from countries like Kazakhstan, China, Australia, and Canada.