Denison Mines gains from the new trend towards Nuclear Energy

Many global leaders have made announcements stating that they approve and support nuclear energy.The latest announcement comes from several global leaders at several international conferences.At the same time  the nuclear industry has made improvements in the nuclear reactors.Their new advanced reactors is more efficient while producing more power.  Now nuclear energy produces 10% of global electricity.As there are 440 nuclear reactors worldwide.And the new advanced reactors are smaller,less expensive and safer;they are called tiny nuclear reactors .This has created new demand for these advanced reactors.And while the demand for electricity has been stable for the last decade it has increased with the advent of electric vehicles and data centres and semiconductors.                          

   Denison Mines

     Denison Mines is one of the most established  uranium stocks on the TSX..It has been in business since 1954.It's assets are focused on the eastern Athabasca region of Saskatchewan but it has mines and unexplored deposits in at least 8 or 9 areas.One of it's principal assets is it's 22% interest in the Mclean Lake joint venture and the Mclean uranium mill in Saskatchewan.But it does have several other deposits plus 385,000 hectares of land in the eastern Athabasca region. 

    The trend towards Uranium 

    Not only is there a push towards nuclear energy there is also an increase in demand for electicity.But by far the biggest reason for the increase in the price of uranium stocks is the increase in the price of uranium.There has been a large increase in price over the last 5 years plus a substantial increase in the last year.Consequently only a slight increase in the production of uranium from 5 years ago has had a substantial increase in the revenue.This has increased the margins on the production of uranium.

   Forecast for 2024

   5years ago the price of uranium was about $25 a pound and this year the price went to $107/pound.Now it has moved below $100 a pound but most analysts forecast  a return to the $100-$110 per pound area as there is still quite a tight supply of uranium.Production will largely be the same as last year.However these factors should be enough to send DML to the $3.25-$3.40 area by the end of summer.                                                                                    

                                                                      

www.marketbeat.com           Dale Mcintyre (M.S.Sc(econ)) is a freelance writer that writes blogs for several technical financial services.