United States and Canadian-based uranium companies are set to soar on a coming Russian production ban in the Western world, GoldSilver.com鈥檚 senior precious metals analyst, Jeff Clark, told an industry audience at the VRIC conference in Vancouver on Tuesday.
鈥淯ranium is already in a bull market,鈥� Clark said. 鈥淵es, those prices have come down just like the others have, but for fundamental key reasons such as supply-demand 鈥� growing globally for uranium and nuclear power,鈥� he said.
He believes Russian uranium, which still accounts for about 50% of U.S. consumption, will soon be banned in retaliation for Russia鈥檚 invasion of Ukraine. 鈥淭hey鈥檝e done it for oil and gas, but they haven鈥檛 done it for uranium. But that is coming. That is a done deal. It鈥檚 going to happen,鈥� he said.
According to Clark, in the US, there鈥檚 widespread political support for a ban from every party except for a minority. 鈥淚t will lift and make the U.S. and Canadian uranium companies very, very attractive,鈥� the analyst pointed out.
鈥淭hey鈥檙e still reliant on Russian uranium, yet the ban is coming. It will make U.S. and Canadian companies all that more attractive,鈥� he said.
Clark said likely to benefit from the move are Uranium Energy Corp (NYSE American: UEC) and enCore Energy (TSXV: E.U.; USOTCQB: ENCUF). He holds large positions in both companies, which are in pre-production.
鈥淣ot only are they going to be more favoured because of bandwidth, whenever it comes, but they鈥檙e also going to be in production next year,鈥� said Clark.
Clark also highlighted Boss Energy (ASX: BOE) in Australia and Fission Uranium Corp. (TSX: FCU) in British Columbia, both projected to go into production in the next year.