We view a positive short-and-long-term outlook for nuclear power and SMRs given proactive government policies, public acceptance, better economics, climate change impacts, and security of supply. This positive outlook resulted in additional uranium demand and higher prices. We saw an evolution of uranium price appreciation drivers during 2023, with consistent price gains at first, gaining more speed by Sep-23 through Q4/24, with ongoing price spikes continuing into 2024. Uranium companies need incentives to develop new mines, accelerate development and make discoveries. Failing that, not all nuclear utilities will receive uranium that they need to keep their reactors in operation. Fortunately, we are starting to see the much-needed uranium price incentive, leading to exploration and mining projects being taken off the shelf, new exploration companies are emerging, and equity investment into uranium stocks continues at a torrid pace.
West Red Lake Gold Mines Ltd. (TSXV:WRLG) – Restarting the High-Grade Madsen Gold Mine in Red Lake
We are initiating coverage of West Red Lake Gold Mines Ltd. (TSXV:WRLG) with a BUY rating and C$1.85/sh target price. West Red...