The uranium market, after experiencing a significant decline in prices, is showing signs of a potential rebound, according to recent analysis by Citi. The financial institution maintains a 'tactically bullish' outlook for the market's potential in 2024 and beyond, forecasting prices could rise to US$98/lb later this year, with an average of US$94/lb, and potentially reaching US$110/lb by 2025.
Recent price stagnation has been attributed to low trading volume and liquidity, but Citi anticipates a shift as investor focus changes. The analysis highlights increased uranium production, particularly from Kazakhstan, as a factor in the recent price dip. However, production growth is expected to slow later in the decade, with inventories forecast to fall by 20 million lbs by 2030, placing uranium production back at the center of price determination.
On the demand side, the growing need for low-carbon energy and rising global power consumption are key drivers. While no new nuclear plants are currently planned, utilities are expected to focus on extending plant life and restarting shuttered facilities, potentially boosting uranium demand, especially in the United States.
Companies like Generation Uranium are strategically positioning themselves to capitalize on this trend. Generation Uranium is advancing its Yath Uranium Project in Nunavut, Canada, located in the prolific Thelon Basin. The project is strategically positioned near the Lac 50 uranium deposit, which contains 43 million lbs of uranium. Historical exploration at Yath has indicated uranium concentrations between 1% and 10% U3O8, highlighting its potential.
In June, Generation Uranium expanded its Yath Uranium Project by over 45% through the acquisition of the Yellow Frog and Pink Toad Uranium Projects along the Angilak Trend in Nunavut. The company has also partnered with APEX Geoscience to advance the Yath Project, including preparing for a planned diamond drilling campaign. Additionally, Generation Uranium has launched an advanced airborne electromagnetic survey at the Yath Project in partnership with ATHA Energy Corp, conducted by Expert Geophysics Ltd.
For more information on the uranium market and Generation Uranium's projects, visit https://www.generationuranium.com and https://www.citi.com.
