Uranium names jump as BofA sees benefits from delaying nuke plant closures

Feb. 1, 2021 10:58 AMCameco Corporation (CCJ)FCUUF, URG, NXEBy: Carl Surran, SA News Editor

Cameco (CCJ +12.3%) shoots higher after a bullish note from Bank of America says if expected closures of U.S. nuclear plants are delayed past 2030, the firm estimates an additional 26M lbs of global uranium demand over the period.

Also: OTCQX:FCUUF +13.9%, URG+11.1%, NXE +8.5%, UUUU +7.9%, DNN+7.1%, UEC +1.8%.

"With Pres. Biden's inclusion of nuclear in his clean energy plan, the Democratic party increasingly embracing nuclear and Republican support... U.S. nuclear plants that are planned for closure could receive federal government help to continue operating," BofA analysts believe.

The report also notes the U.S. Nuclear Regulatory Commission is studying the feasibility of extending nuclear power plant licenses to 100 years, saying such extensions would allow all 94 U.S. nuclear plants currently in operation to continue until at least 2069.

ETFs: URA, URNM

The U.S. government funding deal passed near year-end 2020 provides $75M to begin a national uranium reserve sought by the White House as way to help domestic uranium producers.