"The uranium spot price has just ticked over US$66 a pound, its highest level in 12 years. And it’s up around 40 per cent this year alone.
Uranium’s reawakening after a 12-year slumber reflects surging demand as the world’s nuclear power capacity increases dramatically in response to electricity shortages and the global decarbonisation push.
Even amongst sceptics, nuclear energy production is increasingly becoming accepted as an environmentally friendly baseload power source in a decarbonised world.
The World Nuclear Association (WNA) recently predicted that uranium demand from utilities would nearly double by 2040. At the same time, supply is expected to fall away, especially with supply chain uncertainties such as the recent coup in Niger and, of course, Russia’s invasion of Ukraine.
The WNA forecasts that world reactor requirements for uranium will reach nearly 130,000 tonnes in 2040, up from an estimated 65,650t in 2023.
The capacity of operable nuclear power plants is predicted to be 686GW by 2040, an upward revision from the 615GW previously estimated in 2021.
China is a key driver of this rapidly expanding demand outlook, with the country overtaking France in 2020 to become the world’s second-largest producer.
Not surprising then that the price of yellowcake has outperformed most other metals so far this year.
So what does this mean for uranium stocks?
As veteran resources journalist and commentator Barry FitzGerald pointed out this week, physical uranium and uranium equities have demonstrated a capability to breakout to the upside in dramatic fashion once the uranium spot price starts to move.
“There’s no reason to think that won’t be the case this time around,” FitzGerald wrote"
I think its time to float off the uranium assets and raise funds to prove up a resource. .HAV has done a lot of the work already to achieve this.
Monetise an HAV asset which has no value in the current share price.
Issue shares on a 1:1 to existing shareholder and offer shares in the float.
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