Citi Predicts Uranium Price Rebound in 2024, Highlights Strategic Moves by Generation Uranium

Uranium has been a significant investment theme over the past 18 months, with prices rising from below US$60/lb to over US$107/lb earlier this year. Despite a recent market decline, Citi maintains a "tactically bullish" outlook for uranium, forecasting a price rebound in 2024 and beyond. This forecast is crucial as it suggests a potential upside of 36% by 2025, with prices expected to reach US$110/lb.

Citi attributes the recent price stagnation to low trading volume and liquidity but anticipates a rebound as investor focus shifts. The financial institution forecasts uranium prices to rise to US$98/lb later this year, averaging US$94/lb. Increased uranium production, particularly from Kazakhstan, has contributed to the current price dip. However, production growth is expected to slow later in the decade, and inventories are projected to fall by 20 million lbs by 2030.

On the demand side, the growing need for low-carbon energy and rising global power consumption are notable factors. While no new nuclear plants are currently planned, Citi expects utilities to extend plant life and restart shuttered facilities, especially in the US, potentially boosting uranium demand.

Companies like Generation Uranium (TSXV:GEN) (OTCQB:GENRF) are well-positioned to capitalize on this trend. Generation Uranium is making significant strides with its Yath Uranium Project in Nunavut, Canada, holding a 100% interest in this strategically located project. Historical exploration at Yath has consistently indicated uranium concentrations between 1% and 10% U3O8, underscoring its potential.

In June, Generation Uranium acquired the Yellow Frog and Pink Toad Uranium Projects along the Angilak Trend in Nunavut, expanding the Yath Uranium Project by over 45% to a total coverage of 123.45 km².

To advance the Yath Project, Generation Uranium has partnered with APEX Geoscience for geological consulting services and regulatory compliance. This collaboration builds on historical data pointing to significant uranium potential at Yath. Additionally, an advanced airborne electromagnetic survey has been launched in partnership with ATHA Energy Corp. The survey, conducted by Expert Geophysics Ltd., will use cutting-edge technology to identify electromagnetic anomalies across the property, covering 890 line-kilometers with a 150-meter line spacing.

These strategic moves by Generation Uranium, coupled with Citi's optimistic forecast, highlight a potentially lucrative period for the uranium market. As global demand for low-carbon energy sources grows, companies well-positioned in uranium exploration and production stand to benefit significantly.