DNN - Why Uranium Energy Cameco and Denison Mines Stocks All Popped Today
2024-01-12 14:08:53 ET
Bad news out of Kazakhstan sparked a surge in the share prices of multiple uranium stocks on Friday, with shares of companies such as Cameco (NYSE: CCJ) and Denison Mines (NYSEMKT: DNN) rising 9.6% and 9.7% through 1:15 p.m. ET, while Corpus Christi, Texas-based uranium producer Uranium Energy (NYSEMKT: UEC) beat them both with a 12.1% gain.
As the Financial Times reported this morning, Kazakh uranium mining company Kazatomprom has warned that a lack of supply of sulfuric acid, used in the extraction of uranium metal from uranium ore, will cause it to miss production targets for as much as the next two years.
Kazatomprom (short for "Kazakh atomic industry") produces roughly 20% of all uranium metal mined all around the world in a given year. Worries that other uranium companies may not be able to pick up the slack are driving uranium prices to, if not an all-time historical high, then at least the highest prices we've seen in 16 years. Prices on the spot uranium market have tripled since early 2021, and topped $100 per pound on Thursday.
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Why Uranium Energy, Cameco, and Denison Mines Stocks All Popped Today