He believes Russian uranium, which still accounts for about 50% of U.S. consumption, will soon be banned in retaliation for its 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 stressed.
According to Clark, in the U.S., there’s widespread political support for a ban from every party except for a very tiny minority of people. “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 highlighted two companies likely to benefit from the move Uranium Energy Corp (NYSE American: UEC) and enCore Energy (TSXV: E.U.; USOTCQB: ENCUF), in which he has large positions.
“These companies are in that pre-production sweet spot. 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.
He also likes Boss Energy (ASX: BOE) in Australia. “They’re the same spot. They’re going to be in production within a year. I also think Fission Uranium Corp. (TSX: FCU) is just an automatic buy.”
