Uranium shares slide even as analysts see tighter supply

Stocks of uranium companies are falling despite the strongest long-term fuel prices in more than 18 years, as investors weigh an expected tightening of supply against rising costs and the difficulty of bringing new projects into production. The VettaFi Global Uranium Mining Index, a benchmark tracking uranium mining shares worldwide, dropped 16% in September and the Nasdaq Sprott Junior Uranium Miners Index lost 22%, while spot uranium prices barely moved. Financial-market pressures appear to be overwhelming an improving fuel-market outlook, Sprott market strategist Paul Wong wrote in an Oct. 28 analysis .