Is the uranium super cycle coming?

Shaw and Partners is a leading asset management and investment company in Australasia. Its analysts predict that uranium prices will double to US$200 per pound by 2028. In 2027, the price of uranium is expected to rise to US$175 and in 2028 to US$200 per pound of uranium. This is because there are structural supply bottlenecks and demand for nuclear energy is increasing. In addition, fuel delivery cycles will shorten. All of this will result in a revaluation of the uranium market.

There is a growing gap between uranium supply and demand. Currently, global nuclear energy capacity consumes approximately 180 million pounds of U₃O₈ per year, while existing mine production is only about 150 million pounds. And the World Nuclear Association believes that uranium consumption could reach around 390 million pounds per year by 2040. This would require large-scale projects to be commissioned in order to enable large uranium deliveries. Although there are a number of projects in the planning stage, these projects take time and require a lot of capital, and they are often located in problematic legal jurisdictions.

Rising electricity demand (artificial intelligence, data centers, and increased electrification) and the pursuit of energy security and decarbonization make nuclear energy a necessary energy source. In 2025, utilities ordered less uranium than annual reactor consumption requires, which means that inventories have been depleted. This is unlikely to work in the medium term. As a result, utility activity could increase this year. This is likely to have an impact on uranium companies and lead to a corresponding development.

Uranium Energy – https://www.commodity-tv.com/ondemand/companies/profil/uranium-energy-corp/ – has diversified uranium holdings and ISR uranium projects in the US, with additional projects in Canada. Uranium mining, processing, refining, and conversion are part of the business. The company is debt-free and is now the only US supplier that can deliver uranium and uranium hexafluoride (used in uranium enrichment). New uranium production capacity has been established in Wyoming and Texas. The company has sold uranium at US$101 per pound, demonstrating the strength of Uranium Energy’s strategy. The completion of Burke Hollow, the newest ISR uranium mine in the US, represents a significant milestone.

IsoEnergy – https://www.commodity-tv.com/ondemand/companies/profil/isoenergy-ltd/ – is considered a uranium producer that could go into production in the near future and has high-grade uranium properties in Saskatchewan, besides other uranium projects in Australia, Argentina, and the US. The Larocque East project in the Athabasca Basin in Saskatchewan is particularly high-grade. It has also fresh cash in the coffers. And according to a survey by the Fraser Institute, several areas in IsoEnergy’s portfolio are among the world’s leading regions.

Current company information and press releases from IsoEnergy (- https://www.resource-capital.ch/en/companies/iso-energy-ltd/ -) and Uranium Energy (- https://www.resource-capital.ch/en/companies/uranium-energy-corp/ -)

Further information is also available in our new uranium metal report at the following link: https://www.resource-capital.ch/en/reports/view/uran-report-2022-11-update/

Sources: IsoEnergy, Uranium Energy,

https://stockhead.com.au/resources/monsters-of-rock-shaw-and-partners-sees-uranium-doubling-to-us200-by-2028/;

https://www.resource-capital.ch/en/reports/view/uran-report-2022-11-update/

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