Despite changing macroeconomic conditions, many think the uranium bull market is still alive. Sprott analyst Jacob White believes that current uranium conversion demand, along with a shift away from Russian suppliers, would support higher uranium spot prices.
The uranium spot price was $ 48.38/pound at the end of last month, with uranium future prices now at $ 53.05/pound. Uranium is exchanged through private contracts because it is not generally traded like other commodities. The political upheaval in Kazakhstan and the Russian Ukraine war are driving up uranium prices.
The worldwide interest in shifting away from traditional oil and gas has brought nuclear energy back into the limelight for major countries. Renewable energy, as the ultimate green source, has the greatest challenge of being unreliable, prompting nations to explore nuclear as a superior alternative to cut emissions. France has announced plans to build six to eight new nuclear power plants, Germany plans to prolong the life of its existing two nuclear power plants, and Japan plans to reactivate seven nuclear reactors by next summer using innovative next generation reactors. The G7 countries have resolved to lessen their reliance on Russian nuclear supply by making large investments in nuclear technology and uranium mining.
Cameco, a Uranium Miner, has not only exhibited two-digit increases in 2022, but has also acquired Westinghouse through a strategic alliance with Brookfield Renewables. Westinghouse Electric is the OEM for the majority of the world's nuclear fleet, as well as the owner of many intellectual rights and the manpower required to navigate the sensitive markets. Because of this, Cameco will have the chance to enter Europe's unstable nuclear market.
Regardless of the short-term setbacks, the fundamentals of uranium appear to be rather robust and continue to improve as a greater number of nations acknowledge nuclear as a viable choice. Trading economics predicts that uranium futures will trade at $54.09 in the next 12 months. According to Australia's Department of Industry, Science, and Resources, the price of uranium in 2024 will be roughly $59.6 per pound. Despite changing macroeconomic conditions, many think the uranium bull market is still alive. Sprott analyst Jacob White believes that current uranium conversion demand, along with a shift away from Russian suppliers, would support higher uranium spot prices.