Canada’s Cameco Corp, one of the country’s biggest mining companies, is experiencing a surge in valuations as uranium gains popularity. The resurgence in uranium can be attributed to the increasing adoption of nuclear power by countries looking to reduce carbon emissions and concerns over supply shortages. Shares of Cameco Corp reached a trading value of around $54.25, not far from their all-time high in 2007.
The focus on cutting carbon emissions to combat climate change has brought attention back to nuclear power, which generates no CO2 emissions. The demand for uranium is expected to grow further as nuclear power is embraced as a “green” power source. The nuclear industry previously experienced a slump after the Fukushima power plant disaster in 2011, causing many projects to be cancelled and prompting Germany to phase out nuclear power.
The war in Ukraine has also disrupted the global market for nuclear fuels, leading several countries to seek alternative supply chains that do not include Russia. Amidst these developments, Cameco Corp has faced production issues, with a recent cut in its production forecast for the year due to operational problems at its mines.
Analysts predict potential impacts from the political uncertainty in Niger and the ongoing refurbishments of nuclear power plants in countries like Canada and France. Despite these challenges, the world’s nuclear reactor fleet, which relies primarily on mined uranium, has recently seen a decline in operation. However, countries like France, Japan, and Russia have extended the operating lives of their plants.
It is expected that intense development of new uranium projects will be necessary to avoid future supply disruptions. Although the price of uranium has tripled over the past five years, it remains significantly below its all-time high. Concerns still exist regarding the long-term storage of radioactive waste and the possibility of accidents at power plants.
– The Globe and Mail