Citi Forecasts Uranium Price Rebound in 2024, Generation Uranium Advances Yath Project

Citi's latest research indicates a positive outlook for uranium prices in 2024, despite recent market stagnation. The financial institution forecasts that uranium prices could reach US$98/lb later this year, with an average of US$94/lb. By 2025, prices are projected to climb to US$110/lb, suggesting a potential upside of 36% from current levels.

The recent price dip has been attributed to increased uranium production, particularly from Kazakhstan, which is expected to reach 59 million lbs this year. However, Citi anticipates production growth to slow significantly later in the decade. Concurrently, uranium inventories are projected to decrease by 20 million lbs by 2030, placing uranium production at the forefront of price determination.

On the demand side, Citi highlights the growing need for low-carbon energy sources and rising global power consumption. While no new nuclear plants are currently in the pipeline, the financial institution expects utilities to focus on extending plant life and restarting shuttered facilities, potentially boosting uranium demand, especially in the United States.

As the broader uranium market shows signs of a potential recovery, companies like Generation Uranium (TSXV:GEN) (OTCQB:GENRF) are positioning themselves to capitalize on this trend through strategic projects and exploration initiatives. Generation Uranium is making significant progress with its Yath Uranium Project in Nunavut, Canada, where it holds a 100% interest.

The Yath project is strategically located in the prolific Thelon Basin, along the trend of the Lac 50 uranium deposit, which contains 43 million lbs of uranium. Historical exploration at Yath has consistently indicated uranium concentrations between 1% and 10% U3O8, underscoring its potential.

In June, Generation Uranium expanded its Yath Uranium Project by over 45% through the acquisition of the Yellow Frog and Pink Toad Uranium Projects along the Angilak Trend in Nunavut. This expansion brings the company's total coverage to 123.45 km² and positions Yath within 3 kilometers of Atha Energy Corp's Angilak Project.

To advance the Yath Project, Generation Uranium has partnered with APEX Geoscience for geological consulting services and assistance in preparing exploration authorization applications for a planned diamond drilling campaign. This collaboration includes coordination with key regulatory bodies to ensure compliance with all regulations.

Furthermore, Generation Uranium has launched an advanced airborne electromagnetic survey at the Yath Project in partnership with ATHA Energy Corp. The survey, conducted by Expert Geophysics Ltd., employs cutting-edge Mobile MagnetoTellurics (MMT) technology to identify electromagnetic anomalies across the property. This initiative aims to gather high-resolution magnetic and VLF data, covering 890 line-kilometers with a 150-meter line spacing.

The collaboration with ATHA Energy allows Generation Uranium to leverage economies of scale, potentially reducing costs and accelerating the exploration process. CEO Anthony Zelen expressed confidence in the project, emphasizing the strategic partnership and advanced technology as key factors in advancing Yath towards drilling.

As the uranium market shows signs of recovery and Citi maintains its bullish outlook, companies like Generation Uranium are well-positioned to benefit from the potential upswing in uranium prices. The company's strategic location, expansion efforts, and use of advanced exploration technologies could play a crucial role in meeting the growing demand for uranium in the coming years.