Why are Utility Companies Striking Deals with Uranium Companies?

What's the potential outlook for uranium miners? Are there new mines on the way, and will other operations be restarted? How could this be an investment opportunity?

Just a few years ago, there was very little interest in this space because pricing was not economic. Just at the conference last week, one of the uranium development companies announced an agreement with a utility to deliver uranium, and we're seeing more and more of these announcements. They're really important because what's happening is these utilities realize they need to secure supply from multiple sources.

They are willing to help fund the construction of these new uranium deposits, which is very important for these companies to get to revenue and cash flow. We think we're going to see more and more of these development companies bring their production to market in the next few years, helped in part by capital from the utilities.

So, it's a very strong backdrop in terms of pricing, and obviously the demand is there. Utilities are willing to write checks to get these projects to market.