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VIDEO — Energy Fuels: Nuclear Power is Making a Comeback, Higher Uranium Prices Needed

Energy Fuels: Nuclear Power is Making a Comeback, Higher Uranium Prices

Uranium prices are back above the US$50 per pound level, and even though they have pulled back from their highest level hit this year at above US$60, market fundamentals remain strong.

Demand for alternative energy sources has become a key push for governments around the world, with nuclear power being at the center of discussions. But building domestic sources of uranium will not happen overnight, in particular in the US.

Last month, the US Biden administration was looking for support for a US$4.3 billion plan to boost enriched uranium purchases from American producers. Uranium stocks jumped as a result.

Speaking at the Prospectors & Developers Association of Canada (PDAC) convention, Mark Chalmers, president and CEO of Energy Fuels (TSX:EFR,NYSEAmerican:UUUU), said the US has come to a realization that it is overly dependent on countries such as Russia and China — but there’s a lot of work to do to catch up.

“We really have to put the nuclear fuel cycle back together in the United States, it was a national priority for decades and then for the last three, four decades, it has not been a national priority,” he said. “So there’s a number of steps starting from the mining of uranium in the US, the conversion, which has been shut down for a number of years, and moving forward with more enrichment.”

Commenting specifically on what he sees currently in the uranium market, fundamentals are the best they have ever been, the CEO said.

“Higher prices drive the market, and we saw a nice run up a few months ago,” he said. “It’s come back a little bit, but the price of producing a pound of uranium is higher than the current spot price, so prices have to go up globally.”

Chalmers also talked about his company, which recently signed three uranium contracts with nuclear utilities in the US.

“The financial markets are in a bit of a turmoil, but we’re funded for activities for the next few years without any trouble,” he said.

Watch the interview above for more from Chalmers on Energy Fuels and the uranium, rare earth and vanadium sectors. You can also click here for our recap of PDAC, and here for our full PDAC playlist on YouTube.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Energy Fuels is a client of the Investing News Network. This article is not paid-for content.

The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

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