However, some observers warn that current uranium prices are not high enough to boost output from existing mines, so the gains in the uranium miners space may be short-term unless the fundamentals change.
“The near-term outlook for uranium is mixed, with production costs higher than selling prices—an unsustainable condition,” Rick Rule, founder of Sprott Global Resources Investments, said in the WSJ article.
For instance, Alexander Molyneux, chairman of Azarga Resources Ltd., believes uranium prices will have to reach $70 per pound before mines are sustainable.
Global X Uranium ETF
For more information on the uranium market, visit our uranium category.
Max Chen contributed to this article.