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Shares of uranium producers extended their impressive September rally on Monday, as many governments and influential groups that had fiercely opposed nuclear power now openly embrace nuclear power as a necessary player in the global drive toward electrification and decarbonization of the economy.
And While demand is rising, global uranium production has fallen 25% since 2016 thanks to low prices, before recovering slightly last year to 49,355 tonnes.
The coup in Mali, which produces about 4% of the world’s total, and that of Cameco (NYSE:CCJDeclining production due to problems at the Cigar Lake mine and Key Lake plant in Canada have also limited supply.
In its latest biennial report, the World Nuclear Association says demand for reactors will rise 28% by 2030 and almost double by 2040.
New 52-week highs hit in today’s trading: Energy Fuels (UUUU) +8.5%Uranium Royalty (UROY) +7.5%Fission uranium (OTCQX:FCUUF) +5.1%NexGen Energy (NXE) +4.9%Denison Mines (DNN) +4.6%Cameco (CCJ) +4%Ur-Energy (URG) +3.8%; narrowly missing a new high is Uranium Energy (UEC), +3.6%.
The sector’s two leading ETFs – GlobalNYSEARCA: CAREER) +4.5% and VanEck Uranium+nuclear (NYSEARCA: NLR) +3.4% — have also risen to new 52-week highs.