That's in stark contrast to the rest of the energy market, which has seen prices sink with crude oil leading the way. There's a supply shortage of just as demand continues is increasing, said Amir Adnani, CEO of Uranium Energy (UEC).
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Uranium has been in a multi-year bear market, but is finally starting to move to the upside.
Adani said that there's demand for cleaner fuel and a desire to curb carbon emissions.
Uranium Energy Corp. UEC data by YCharts
For example, Japan has received regulatory approval to restart four nuclear reactors this year, with more expected to come on line in the future.
Asia, particularly China, also remains a large nuclear power generator and the expectations are for more reactors on the continent to come on line in the future.
Growth in other parts of the world would compensate for countries like Germany, which does not rely as heavily on nuclear energy, he said.
Regarding Uranium Energy Corp., Adnani said the company is uniquely positioned to take advantage of an increase in uranium demand.
It's in an "elite class" among its peers, as it's the only producer in the world that doesn't hedge against price movements, he said. So if uranium prices continue to increase, the company will continue to benefit.
The uranium market is in the early innings of what appears to be a long-term turnaround. Uranium Energy Corp. has a low cost structure and is well-positioned for that turnaround, Adnani said.
