Uranium prices: 700% increase in the stock’s value

Planting seeds in uranium when it was cheap and off the radar of everyone allowed us to harvest enormous gains later on

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Cameco-part-opportunity-featured

Cameco is the 2nd largest uranium producer worldwide and operates the 2 highest grade uranium mines in the world. In 2011 following the Fukushima nuclear power plant accident uranium went into a decade long bear(down) market. Japan shut down all their reactors and supply from mines was greater than demand causing the prices of uranium per pound to drop to 17 dollars a pound. The industry needs to sell uranium at $70 a pound on average to make money so it was easy to see that the price of uranium had to go up or we would run out of it. The price did in fact go up in 2020 and we have had a bull market in uranium since then with amazing gains in many of the uranium stocks.

Uranium prices were as low as $17 per pound, while the all-in production cost ranged between $60 and $75 per pound. The price had to increase to avoid significant supply shortages. In 2020, uranium prices began to surge amid projections of a prolonged deficit. This led to a 700% increase in the stock’s value from its lowest point to its peak.

Here is a chart of cameco the blue chip uranium stock