It's been a while since I've written about uranium, but I continue to be a shareholder in Uranium Energy (NYSE: UEC) and NexGen Energy (TSX: NXE). Like other key resources, the idea that there is not enough uranium ready to meet demand in the long-term remains in play. However, I am careful here as being early is the same as being wrong. I haven’t yet seen enough signs of life to bring me back to uranium, but that’s starting to change.
In a Uranium Sector Update from May 8, 2018, Haywood analysts wrote that this is "the best fundamental position we have seen since pre-Fukushima". The demand side is looking good as the global reactor pipeline is "now exceeding the pre-Fukushima level" and the supply side finally looks like it is figuring out how to squeeze a rally out of the spot market, with prices now rising for the third time in a year.
We haven’t seen a significant lift in uranium term prices yet, but it may be coming.