Nick Hodge,
Publisher
Dec. 29, 2023
The uranium market and related stocks continue to look strong.
The spot price of uranium is now at 16-year highs above $90 per pound, and has clearly broken out into a new bull market.
It looks like it’s going to get from $60 to $100 much faster than it got from $20 to $60.
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View ReportsCompanies like enCore Energy (NYSE: EU)(TSX: EU) are starting to turn on production that has been idled for years now that the price is finally high enough to turn a profit.
Energy Fuels (NYSE: UUUU)(TSX: EFR) announced recently that they're turning three mines back on and they're preparing two for production as well in multiple jurisdictions — in Wyoming, in Arizona, in Utah, in Colorado. They've got a mill, where not only are they looking to process their own ore, but they're going to be doing some toll milling in 2024. And they can do rare earths as well.
Both of those uranium stocks are large holdings in the Global X Uranium ETF (NYSE: URA). It’s worth looking at a chart of that uranium ETF for a second to assess where we are in the bull market.
You can see that it is now consolidating gains from the first wave of the bull market in 2021 near the $28 level. I would say this is part of gaining energy for the next leg higher.
Consider the run in 2021 the first of three phases of this uranium bull market.
That ETF quickly took off from $8 to over $30. And then it had a correction and consolidation throughout 2022. It started to take back off in the second half of 2023. And now it’s putting in a base at those higher prices notched in the first phase ahead of a second phase that’s soon to begin.
That makes now a great time to get into uranium stocks before they take off again. We’ve outlined our top uranium stock picks here.
Like I said, the first phase is now complete. And I expect the second phase to kick off in 2024.
Many uranium stocks are at or near 52-week highs, and yet they are still nowhere near the highs they reached at the peak of the last uranium cycle.
Take the aforementioned Energy Fuels as a prime example.
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View PublicationsSo far in this new uranium bull market it is up some 275% to trade just over C$10.00. But during the last uranium cycle, it climbed to over $240.
Despite tripling in the past two years, it would still need to go up more than 24X to reach its highs from the previous cycle.
And if we just completed the first of three phases, it still has plenty of time to deliver those gains, which is why you should start looking at uranium stocks now if you haven’t already.
Click here for our video on how to capture the most profits during uranium bull markets.
Nick Hodge
Publisher, Daily Profit Cycle