Big Tech Targets Nuclear Energy to Support AI Ambitions

Sprott Uranium Report

Big Tech Targets Nuclear Energy to Support AI Ambitions

Big tech is turning to nuclear energy to fuel the massive power needs of AI-driven data centers. They're striking bold deals to develop small modular reactors (SMRs), sparking a surge in uranium demand and helping to support clean energy innovation. At the same time, global uranium supply remains inadequate to meet both current and future reactor requirements.

Uranium Markets Shake Off Summer Doldrums

Sprott Uranium Report

Uranium Markets Shake Off Summer Doldrums

The uranium market has faced short-term volatility, including price declines driven by geopolitical tensions and economic concerns. Despite these challenges, the long-term outlook remains strong. Supply uncertainties from key producers like Kazakhstan and Russia are contributing to this volatility, but the fundamental supply-demand imbalance suggests further growth potential.

Uranium Case Strengthens

Sprott Uranium Report

Uranium Case Strengthens

The uranium spot price has remained range-bound between $85 and $95 per pound, and ended the first half at $85.34 (June 30, 2024). Uranium miners fell in June, but bounced back in early July, outperforming the commodity YTD. Over the longer term, physical uranium and uranium miners have demonstrated significant outperformance against broad asset classes, particularly other commodities.

Uranium Miners Lead Market Higher

Sprott Uranium Report

Uranium Miners Lead Market Higher

Thus far in 2024, the uranium spot price has stabilized between $85 to $95 per pound after a significant 88.54% increase in 2023. This phase indicates a healthy correction within a bullish market cycle. Uranium miners have shown improved performance, catching up to gains in the spot price. 

Nuclear Revival: A Resurgence for Uranium Miners

Special Report

Nuclear Revival: A Resurgence for Uranium Miners

Rising global commitments to nuclear energy are helping to make uranium a compelling investment. While spot uranium prices have come down slightly after a significant rise, we believe there is room for growth given that demand is expected to climb as the need for low-carbon energy sources intensifies. We believe that uranium miners can add growth potential and diversification to investor portfolios.

Miners Ignore Softer Uranium Price

Sprott Uranium Report

Miners Ignore Softer Uranium Price

The uranium market showed mixed performance in March: the spot uranium price fell but miners' stocks rose due to long-term positive outlook for uranium demand. With no meaningful new supply on the horizon for three to five years, we believe the uranium bull market has further room to run.

 Uranium Bull Market Takes a Healthy Pause

Sprott Uranium Report

Uranium Bull Market Takes a Healthy Pause

Uranium markets pulled back in February after a rapid rise—in our view, this is a healthy pause in the ongoing uranium bull market. Announcements from Kazatomprom and Cameco underscored the uranium markets' structural supply deficit, while global governments continued to champion the benefits of nuclear energy.

Uranium Price Returns to Triple Digits

Sprott Uranium Report

Uranium Price Returns to Triple Digits

Uranium price surged 11% in January to $101 per pound, fueled in part by Kazatomprom's cut in guidance for 2024 production by ~14%. Junior uranium miners were top performers for the month, climbing 18.78%. Supply uncertainties continue to dominate markets, given the situation in Niger and possible bans on Russian uranium. 

What a Year for Uranium and Nuclear Energy

Sprott Outlook

What a Year for Uranium and Nuclear Energy

2023 provided the long-awaited inflection point for the uranium contracting cycle whereby we have finally achieved replacement rate levels. We believe the era of uranium inventory destocking and utility complacency is over. Long-term security of supply concerns, fanned by lingering geopolitical risks and the challenges of expanding primary production, are likely the key themes to watch.

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