US, Canadian companies set to soar on Russian uranium ban

“Uranium is already in a bull market,” Clark said. “Yes, those prices have come down just like the others have, but for fundamental key reasons such as supply-demand … growing globally for uranium and nuclear power,” he said.

He believes Russian uranium, which still accounts for about 50% of U.S. consumption, will soon be banned in retaliation for Russia’s invasion of Ukraine. “They’ve done it for oil and gas, but they haven’t done it for uranium. But that is coming. That is a done deal. It’s going to happen,” he said.

According to Clark, in the US, there’s widespread political support for a ban from every party except for a minority. “It will lift and make the U.S. and Canadian uranium companies very, very attractive,” the analyst pointed out.

“They’re still reliant on Russian uranium, yet the ban is coming. It will make U.S. and Canadian companies all that more attractive,” he said.

Clark said likely to benefit from the move are Uranium Energy Corp (NYSE American: UEC) and enCore Energy (TSXV: E.U.; USOTCQB: ENCUF). He holds large positions in both companies, which are in pre-production.

“Not only are they going to be more favoured because of bandwidth, whenever it comes, but they’re also going to be in production next year,” said Clark.

Clark also highlighted Boss Energy (ASX: BOE) in Australia and Fission Uranium Corp. (TSX: FCU) in British Columbia, both projected to go into production in the next year.