Uranium mining sector-related exchange traded funds have enjoyed a stellar month after the U.S. Senate Committee on Environment and Public Works approved a bipartisan American Nuclear Infrastructure Act that includes a national strategic reserve of uranium.
Over the past month, the North Shore Global Uranium Mining ETF (NYSE: URNM) increased 44.2% and the Global X Uranium ETF (URA) advanced 29.2%.
“The American Nuclear Infrastructure Act will promote U.S. international leadership, preserve America’s nuclear fuel supply chain, prevent more carbon emissions from entering our atmosphere, and protect our economic, energy, and national security,” EPW Senate Committee Chairman, Senator Barrasso, stated:
The legislation has helped fuel momentum in uranium stocks. Uranium company CEOs are hopeful that an injection of funds from the federal government purchasing uranium for its reserve stockpile will support uranium companies from their present “high risk of insolvency.”
“The bipartisan Nuclear Infrastructure Act is broad reaching legislation, important for supporting the U.S. nuclear fuel industry, national security and clean energy. The legislation will provide a clear path for implementation of the U.S. Uranium Reserve and provide a strong platform to revitalize the U.S. Uranium Industry,” UEC CEO and President, Amir Adnani said in a note.
Further adding to the rally in the uranium mining space, Cameco, Canada’s largest uranium company, announced another shutdown at its Cigar Lake operation. It is temporarily suspending operations at its Cigar Lake uranium mine in northern Saskatchewan after employees tested positive for Covid-19, Mining-Journal reports. Cameco warned that Saskatchewan is in the midst of a serious COVID-19 outbreak.
Cameco said any decision on restarting production “will depend on how the COVID-19 pandemic is impacting the availability of the required workforce at Cigar Lake, how cases are trending in Saskatchewan, in particular in northern communities, and the views of public health authorities.”
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