The situation with uranium as a raw material

Compared to the last ten years, the uranium price is still high at around USD 77 per pound, even if it has fallen somewhat from its high of USD 83 this fall. There has been a lot of news in the uranium sector this year. Of particular note was the announcement in August by Kazatomprom, the world’s largest uranium producer, that its forecast for uranium production in 2025 would have to be significantly downgraded. In mid-August 2023, Kazatomprom was still talking about a 45% increase in production for 2025. That would have been around 80 million pounds of uranium. The deficit on the global uranium market is therefore worsening and this is likely to continue until 2030 in any case. Stockpiles at Kazatomprom also fell significantly in 2024 compared to the previous year. This suggests that much of the planned production increases were sold through contracts. Today, the uranium giant’s uranium reserves amount to around 16 million pounds of uranium. That is around 40 percent less than five years previously.

The fact that large technology companies such as Microsoft, Oracle and Google now want to invest in small modular reactors (SMRs) to cover their hugely growing electricity requirements will make uranium even more sought-after. One of the techs also wants to put a decommissioned reactor in the USA back into operation. SMRs could dominate the nuclear industry in the future. They are energy-efficient and can replace energy generation from coal in a climate-friendly way. In any case, the energy-intensive global economy is striving to secure the energy it needs. Nuclear energy offers the solution to supplying data centers with clean energy without using fossil fuels. Investors should therefore keep uranium on their radar, as should companies in the sector.

These include Uranium Energy – https://www.commodity-tv.com/ondemand/companies/profil/uranium-energy-corp/ – with its environmentally friendly and cost-effective ISR uranium projects in the USA and other projects in Canada.

Uranium Royalty – https://www.commodity-tv.com/ondemand/companies/profil/uranium-royalty-corp/ – is the only royalty company in the uranium sector and scores with a diversified and impressive portfolio.

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

In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.

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