Breaking the significant $100 per pound milestone reflects a 100% increase from the 2023 low, and a whopping 300% climb on the 2020 low. As U shows no signs of slowing, analysts contemplate the extent of its potential ascent.
In the wake of its bullish run, its the juniors and speculative stocks which appear to be garnering the most market attention.
Figure 1: Uranium price chart – reaching $104 per pound (16/01/2024) . Source: Market Insider
Growing Demand for Uranium
The increasing demand for fresh uranium sources, ongoing volatility of fossil fuel prices and global pushes for decarbonisation has prompted substantial investments in nuclear power.
The recent Cop28 climate conference emphasised the need for nations to transition away from fossil fuels and accelerate development of low-emission technologies, such as nuclear energy.
With countries across the world committing to this transition, nuclear power was recognised for one of the first times as playing a fundamental role in combating climate change.
While grappling with supply shortages and the need for government and private sector funding support, the global backing for nuclear power suggests a promising outlook for sustained uranium demand in the years to come, reflected in the increased volume traded within speculative’s operating in the uranium space.
Enrg Elements Limited (ASX:EEL)
Enrg Elements is a company focused on the exploration and development of its uranium and copper projects, bolstering a market capitalisation of $10.09 million.
It’s flagship Agadez Uranium Project is located in the highly prospective Tim Mersoi Basin of Niger, with a JORC Resource of 10.7 million pounds of contained eU3O8 at 295ppm from the surface to only ~30 metres deep.
Figure 2: The Agadez Uranium Project
Enrg has completed extensive exploration across the Project’s three exploration permits, with its latest rock chip sampling retuning assays over 500ppm eU3O8, including highest values of 34.3% and 26.1% eU3O8.
EEL’s Australian Securities Exchange-listed share price is currently trading at $0.012 (8.45am UTC+ 8 hours).
Sabre Resources (ASX:SBR)
Sabre Resources is an exploration company focused on energy metals in Australia, hosting a market capitalisation of $10.50 million.
The Company’s uranium exploration is located in the Northern Territory, where it holds an 80% interest in the Ngalia Uranium-Vanadium Project, comprising of two granted exploration licences and five new applications in the highly prospective Ngalia Basin, near existing substantial uranium-vanadium Projects.
The Ngalia Basin is one of the most highly prospective and accessible uranium areas in Australia and is strongly supported by the Northern Territory Government.
Figure 3: Sabre’s major tenement holdings in the Ngalia Basin is near the high-grade Bigrlyi uranium deposit
SBR’s Australian Securities Exchange-listed share price is currently trading at $0.028 (8.45am UTC+ 8 hours).
Haranga Resources (ASX:HAR)
Haranga Resources is an African focused, multi-commodity company with a market capitalisation of $21.93 million.
Its flagship Saraya Uranium Project, located in Senegal, has benefitted from an excess of 65,000 metres of historical drilling.
The Company has significantly advanced this Project, finalising its Mineral Resource Estimate in 2023, based upon 541 drill holes, combining historic exploration programs with its more recent 2022 drilling campaign.
The Saraya Project MRE stands at an impressive 16.11 million pounds of eU3O8 at 587 ppm grade, underscoring the substantial mineralisation potential within the Saraya Uranium Deposit, which remains open along strike, down-dip, and down-plunge.
Figure 4: Haranga MRE Saraya Uranium Project
The 22 diamond core holes completed by Haranga for 3,021 metres have resulted in 45 uranium intercepts for 524 metres of mineralisation, with a weighted average grade of 775ppm eU3O8.
HAR’s Australian Securities Exchange-listed share price has risen 4.08% and is currently trading at $0.255 (8.45am UTC+ 8 hours).
Moab Minerals (ASX:MOM)
Moab Minerals is a junior uranium exploration company with a market capitalisation of $4.36 million. It is focused on the exploration and advancement of its REX Uranium-Vanadium Project, located in the famed Uravan Mineral Belt of Colorado.
Through its 60% ownership of the REX Uranium-Vanadium Project, Moab controls the many historic uranium mines located on the property, including Blackfoot/Rattlesnake, Wedge, Merry Widow, Sunbeam and Vanadium King.
These mines have remained untouched by exploration since the 1970s, except for initial sampling conducted by the Company, which returned high grade uranium and vanadium results.
The average grade of the 12 samples collected was 2,246ppm U3O8 (0.22%) with a peak value of 5,280ppm U3O8 (0.53%).
The underexplored nature of the property offers significant upside potential for Moab, as it endeavours to conduct a focused exploration campaign aimed at delving deeper into the potential of the REX Project.
Figure 5: Moab Mineral’s REX Project
MOM’s Australian Securities Exchange-listed share price is currently trading at $0.006 (8.45am UTC+ 8 hours).
Valor Resources (ASX:VAL)
Valor Resources (ASX:VAL) is a multi-commodity junior exploration company with a market capitalisation of $16.69 million.
Figure 6: Valor Resources Canadian Projects
Throughout 2023, Valor made a move to shift its exploration focus to uranium in Canada’s Athabasca Basin, acquiring several key tenements to expand its land holding.
Historically, Athabasca has produced 20% of the world’s primary uranium supply throughout 60 years of mining history, with Saskatchewan consistently ranking in Top 10 of Global Mining Investment Jurisdictions.
The Company believes the basin, which hosts an average grade of ~2% U3O8, significantly higher than the global average, positions itself in the booming uranium market as demand soars and prices continue their bullish run.
VAL’s Australian Securities Exchange-listed share price is currently trading at $0.004 (8.45am UTC+ 8 hours).
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