The uranium market appears poised for a significant rebound according to recent analysis from Citi, despite experiencing a steady price decline since reaching over US$107/lb in February. Citi maintains a tactically bullish outlook for the market's potential in 2024 and beyond, attributing recent price stagnation to low trading volume and liquidity while anticipating a shift in investor focus that could drive prices higher. The financial institution forecasts uranium prices could rise to US$98/lb later this year with an average of US$94/lb, and by 2025, prices could reach US$110/lb, representing a potential 36% upside from current levels.
Increased uranium production has contributed to the recent price dip, with Kazakhstan's output expected to reach 59 million lbs this year. However, production growth is projected to slow sharply later in the decade, creating potential supply constraints. Simultaneously, inventories are forecast to fall by 20 million lbs by 2030, which would put uranium production back at the center of price determination according to Citi's analysis. On the demand side, the financial institution highlights the growing need for low-carbon energy and rising global power consumption as key drivers. While no new nuclear plants are currently planned, utilities are expected to focus on extending plant life and restarting shuttered facilities, potentially boosting uranium demand, particularly in the United States.
As the broader uranium market shows signs of potential recovery, companies like Generation Uranium are positioning themselves strategically. Generation Uranium is advancing its Yath Uranium Project in Nunavut, Canada, holding 100% interest in this project located in the prolific and under-explored Thelon Basin. The Yath project is strategically positioned along the trend of the Lac 50 uranium deposit, which contains 43 million lbs of uranium and is currently being developed by Latitude Uranium, a company recently acquired by ATHA Energy for $64.7 million in an all-share deal. Historical exploration at Yath has consistently indicated uranium concentrations between 1% and 10% U3O8, underscoring its significant potential.
In June, Generation Uranium expanded its portfolio by acquiring the Yellow Frog and Pink Toad Uranium Projects along the Angilak Trend in Nunavut, Canada. These acquisitions expanded the Company's Yath Uranium Project by over 45%, bringing total coverage to 123.45 km². The expanded Yath project now extends northward, coming within 3 kilometers of Atha Energy Corp's Angilak Project. To advance exploration efforts, Generation Uranium has partnered with APEX Geoscience, which will provide geological consulting services and assist in preparing and submitting exploration authorization applications for a planned diamond drilling campaign. This collaboration includes coordination with key regulatory bodies to ensure compliance with all regulations. Furthermore, Generation Uranium has launched an advanced airborne electromagnetic survey at the Yath Project in partnership with ATHA Energy Corp, with the survey being conducted by Expert Geophysics Ltd. using cutting-edge Mobile MagnetoTellurics technology to identify promising targets for future drilling.
