Uranium stocks soar on bullish Goldman Sachs call, Kazakhstan flooding

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Uranium stocks are having their best run in months on a combination of flooding in Kazakhstan, the world’s largest producer of the nuclear fuel, and a burst of bullish coverage from banks including Goldman Sachs Group Inc.

But this week, the stocks saw an added influx of demand. The $3.2 billion Global X Uranium ETF is up about 6.5%, for its best week since early February. The fund has benefited from gains in NuScale Power Corp., a nuclear power company trying to build small modular reactors, and small-cap miners including Mega Uranium Ltd. North America’s largest uranium miner, Cameco Corp., has climbed 15% this week, adding C$1.7 billion in market value.

“Goldman’s initiation opens the whole universe up,” said Michael Alkin, chief investment officer at Sachem Cove Partners. He started his fund, which invests in uranium miners and also in physical uranium, in 2018, at a time when he said the sector garnered little attention.

 

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