“You’ve got a very focused supply of uranium in a country which has significant sovereign risks surrounding it,” added Leigh Curyer, the CEO of NexGen Energy, a uranium exploration company.
“(Nuclear power) is undergoing quite a resurgence. A lot of countries are recognizing that nuclear power is the baseload supply of electricity that is emissions-free,” he added.
This is particularly in China where air pollution from coal-powered plants have become a social and political issue.
There are some 61 nuclear plants being built globally with another 150 being planned, so the demand outlook for uranium is much stronger than that for other fossil fuels, said Mark Jolley, equity strategist at CCB International Securities.
Macquarie Bank was more circumspect on the current rally, noting that the jump was from a low base as prices tanked to a 12-year low of $18 per pound low in November, with the run-up lagging gains in the energy complex.
