In June the spot price of uranium was around $40/lb and over the last few months we have seen a steady surge with the current spot being $61/lb. Several commentators have suggested that the price rise is due to China stockpiling large amounts in preparation for its rapid nuclear plant roll out. China has 13 plants at the moment and is said to be targeting 80 plants by 2020. Europe is also contemplating going nuclear and even Australia is starting to have the discussion it needs to have.
So much more demand and consequently we can ask the question: Has the increased demand translated to increased share prices for our ASX listed uranium plays.
Well according to the Australian Uranium Share Index : which tracks the performance of all companies listed on the Australian Stock Exchange that have a primary focus on the exploration and production of Uranium, the answer is yes.
This also seems to be reflected in the Global Uranium Share Index
If you look at the GURAF and the Uranium futures you will see that Marketclub has given them a buy trade triangle… the highest rating.
Personally I have found the GURAF to be an excellent forward indicator for our ASX listed uranium companies.
(if you are looking for Australia’s cheapest uranium play by far check out AEE)