Demand for uranium in nuclear reactors is expected to increase by 28% by 2030, and nearly double by 2040, says the World Nuclear Association (WNA), as noted by Reuters. All as global governments ramp up their nuclear capacity to meet zero-carbon targets. That, coupled with supply issues could boost uranium stocks like Kraken Energy Corp. (CSE: UUSA) (OTCQB: UUSAF), Uranium Energy Corp. (NYSE: UEC), Energy Fuels Inc. (NYSE: UUUU) (TSX: EFR), Cameco Corp. (NYSE: CCJ) (TSX: CCO), and Denison Mines Corp. (NYSE: DNN) (TSX: DML).
In fact, “Uranium prices have reached their highest level in more than a decade as a global supply shortage persists, with the bull market for uranium investments still in its ‘earliest days.’ The market is ‘definitely in a structural deficit as demand is growing at a 5% annual rate and the current (2023) gap between global production and consumption remains at over 50 million pounds, said Scott Melbye, executive vice president at mining company Uranium Energy Corp.,” as quoted by MarketWatch.com
Look at Kraken Energy Corp. (CSE: UUSA) (OTCQB: UUSAF), For Example
Kraken Energy Corp. reported that the Company has received permits to drill our 100%-owned, past-producing flagship Apex Uranium Property located in central Nevada.
On August 28th, 2023, Kraken reported a significant expansion of the Apex Property on Nevada Bureau of Land Management ground that covers the potential northwest extension of uranium mineralization from the historic Apex Uranium Mine. On October 17th, 2023, the Company reported on the identification of multiple high priority drill targets comprising coincident geophysical and radon anomalies along a 2.0 km trend northwest of the Apex Mine and within the newly expanded BLM ground.
Kraken has received approval from the Nevada BLM to drill up to 2,200 m (7,217 ft) in 24 holes from 8 pads and expects to commence drilling before the end of 2023. This inaugural drill program will test high priority targets immediately northwest and along trend of the historic Apex Uranium Mine in central Nevada.
Highlights:
- Priority drill targets over strong radon anomalies coincide with geophysical signatures outlining the mineralized contact at the historic Apex Uranium Mine.
- The BLM has approved permit to drill up to 2,200 m (7,217 ft) in 24 holes from 8 pads with an objective to commence drilling before the end of 2023.
- Interpretation of the recently flown VTEM and UAV magnetic surveys shows a geophysical signature associated with uranium mineralization at the Apex Mine that appears to be offset to the north where it continues trending northwest. This geophysical signature coincides with strong and consistent, recently identified radon anomalies.
- Over 2 km of new high priority target potential has been identified on the recently staked BLM ground that follows the northwest mineralized trend from the Apex Mine.
- Newly defined and previously undrilled target area with projected target depths ranging from 50 m to 200 m (164 ft to 656 ft).
“The emergence of this 2 km long, high priority target area along trend of the historic Apex Uranium Mine is very exciting for the Kraken team. With an approved drill permit now in hand and the environmental bond paid, we are ready to commence our maiden drill program at the Apex Uranium Property” Matthew Schwab, CEO of Kraken Energy, stated. “As our understanding of the property has continued to develop, the multi-layered anomalies from radon and geophysical surveys (electromagnetic and magnetic) combined with our ground truthed geological model presents excellent discovery potential for the upcoming drill program at our flagship uranium property in Nevada.”
Other related developments from around the markets include:
Uranium Energy Corp.’s. Amir Adnani, CEO and President stated: "Fiscal 2023 proved to be a year of significant achievements in executing on our strategy and building the premier North American focused uranium company. We continued to make accretive acquisitions and advance our projects with resource expansions and extraction/production restart programs. Our strategy is aimed at a robust uranium supply from the stable and secure jurisdictions of the U.S. and Canada, with near term U.S. ISR production and a pipeline of high-grade Canadian projects with exceptional growth potential. UEC remains 100% un-hedged, at a time when the need for new production is becoming acute in the global market and particularly for Western utilities seeking supply assurance. Our balance sheet is debt free with $192.3 million in cash and liquid assets, providing the financial strength to advance projects towards production and support further accretive acquisitions."
Energy Fuels Inc.’s Mark S. Chalmers, President and CEO, recently stated, "Energy Fuels continued to make excellent progress on all aspects of our core uranium and rare earth businesses during Q2-2023. We completed the sale of 80,000 pounds of uranium to one of our utility customers under one of our long-term contracts. We expect to make another sale of 180,000 pounds of uranium under another long-term contract later this year. Depending on inflation and spot price activity, we expect that sale to be at a price of $54 - $58 per pound. We also continued preparing four (4) of our conventional uranium mines for production, and we expect at least one to be ready to commercially produce uranium ore later this year.
Cameco Corp. provided a market update regarding challenges at the Cigar Lake mine and Key Lake mill that are expected to impact its 2023 production forecast. At the Cigar Lake mine, it now expects to produce up to 16.3 million pounds of uranium concentrate (U3O8) (100% basis) this year, a reduction from the previous forecast of 18 million pounds U3O8 (100% basis). Production from the McArthur River/Key Lake operations for 2023 is anticipated to be 14 million pounds U3O8 (100% basis), down from the previous forecast of 15 million pounds U3O8 (100% basis). As previously reported, mining activities at the Cigar Lake operation were initiated from a new zone in the orebody (west pod) in the second quarter of this year, which impacted productivity. As mining activities continued in the west pod during the third quarter, equipment reliability issues emerged which further affected performance. The mine is scheduled to enter its planned annual maintenance shutdown that will run through most of September. At the Key Lake mill, ramp up activities remain ongoing. However, as noted in our second quarter MD&A, there is continued uncertainty regarding planned production in 2023 at Key Lake due to the length of time the facility was in care and maintenance, the operational changes that were implemented, availability of personnel with the necessary skills and experience, and the impact of supply chain challenges on the availability of materials and reagents.
Denison Mines Corp.entered into a binding agreement with F3 Uranium Corp. to make a $15 million strategic investment in F3 in the form of unsecured convertible debentures David Cates, President and CEO of Denison commented, "F3's technical team has an incredible track record of exploration success including the discovery of the JR Zone on the Patterson Lake North property, which represents one of the top new uranium discoveries globally. We are pleased to be investing in F3, supporting the further assessment of the PLN property, and providing Denison shareholders with exposure to this exciting new discovery in the Athabasca Basin."
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