Recent posts on Reddit's WallStreetBets forum have raised bullish views on uranium prices and related mining stocks.

The price of this physical metal, which is mainly used for fuel in nuclear power plants, has risen sharply recently. Uranium futures traded on the new York market have surged about 40 per cent in the past month to $42.40 a pound, the highest level in about seven years.

Shares of uranium mining companies in the United States, Britain and Australia have also soared in recent days.

On Monday, September 13, uranium miners listed in Sydney$PENINSULA ENERGY LIMITED (PENMF.US) $、 Energy Resources of Australia Ltd. And$BANNERMAN ENERGY LTD (BNNLF.US) $All of them received more than 25% higher. British listed mining company Aura Energy Ltd. The share price rose by more than 35%.

Meanwhile, the Canadian uranium mining company$Cameco Corp. (CCJ.US) $Has become the most discussed company on WallStreetBets, second only to the tech giant$Apple Inc (AAPL.US) $. The uranium miner's share price has risen continuously for more than half a month, rising about 50% since its low on Aug. 20.

Another American nuclear energy concept stock$URANIUM ROYALTY CORP (UROY.US) $Shares soared 24% on Monday.

Why uranium?

Uranium is the most widely used fuel for nuclear fission in nuclear power plants. Uranium is considered a non-renewable source of energy, although it is a common metal in rocks around the world.

At the same time, traditional demand for uranium remains strong, long-term growing interest in nuclear energy will require more supply, and the current price environment cannot meet future demand given the high capital expenditure and long delivery cycle for developing new uranium projects.

Investors are also betting that demand for metals will rise as the world shifts to less carbon-intensive energy. Andre Liebenberg, chief executive of Yellow Cake, a uranium mining company, said governments, including the US and China, had pushed nuclear power to play a role in global climate change mitigation efforts, helping to expand the attractiveness of uranium among investors.

GlobalCurrent situation of nuclear power

The first commercial nuclear power plant began operation in the 1950s. About 10% of the world's electricity is generated by about 445 nuclear power reactors. About 50 reactors are under construction, equivalent to about 15% of existing capacity.

There is a clear need for new power generation capacity around the world to replace old fossil fuel units, especially coal-fired units that emit large amounts of carbon dioxide, and to meet the growing demand for electricity in many countries. In 2018, 64% of electricity came from the burning of fossil fuels. Despite the strong support and growth of intermittent renewable energy in recent years, the contribution of fossil fuels to power generation has remained virtually unchanged over the past decade or so (66.5% in 2005).