Uranium futures skyrocketed to almost $50 a pound, the highest since August 2012 after Sprott Physical Uranium Trust resumed purchases after Canadian securities regulators approved the expansion of the equity sales program allowing the fund to purchase up to $1 billion in additional uranium in the next few months. The futures are up more than 50% since the beginning of August after the fund started aggressively buying physical uranium. The commodity is projected to be in high demand as governments from the US to China see a role for nuclear power in their clean energy programs. Meanwhile, the supply remains tight. Euratom Supply Agency said that the Coronavirus pandemic has significantly influenced the market as several companies announced in the second quarter of 2020 measures leading to an important decrease in production and related services. Also, Kazatomprom, the world's largest uranium producer decided to keep production flat in 2022 and 2023.
Historically, Uranium reached an all time high of 1349 in September of 2020. Uranium - data, forecasts, historical chart - was last updated on September of 2021.
Uranium is expected to trade at 50.05 USD/LBS by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 47.88 in 12 months time.