The Oregon Group Report Forecasts 10-year Bull Market for Uranium

TORONTO, Nov. 10, 2022 /PRNewswire/ - Uranium is at the start of a 10-year bull market, according to a new report. The Oregon Group forecasts the uranium market will be positively impacted by a large net increase in global nuclear reactors, which require uranium as fuel. The report examines key drivers behind this growth, including decarbonization, commercialization of small modular reactor technology, and energy security. Additionally, analysis of the uranium market points to a major reduction in current global stockpiles, a lack of near-term uranium production, and the potential for a supply crunch.

The uranium market has recently exited a 10-year downturn, during which mines were shut down, development projects stalled, and numerous exploration companies ran out of money.  As uranium prices have risen, mine restarts have been announced. However, dwindling reserves and grades at existing producers, and the lack of advanced development projects, means that  supply is poorly placed to keep up with expected demand over the coming years. Producers have made clear that new production will require much higher incentive pricing.

This growth will benefit a number of players in the uranium sector. In particular, existing producers like Kazatopmprom (LSE:KAP) and Canadian-based Cameco (TSX:CCO) will have the advantage of being able to increase contract pricing – a trend already apparent in the pricing curve. Advanced development plays like NexGen Energy (TSX:NXE), Denison Mines (TSX:DML) and Fission Uranium (TSX:FCU) stand to benefit when they look to raise the funds for construction.

In addition, ETFs and physical uranium trusts, such as the Sprott Uranium Miners (NYSE:URNM), Global X (NYSE:URA), and Sprott Physical Uranium Fund (TSX:U.UN) are directly linked to the price of uranium and will see their holding grow in value in a higher priced market.

Uranium is one of the most energy dense fuels in existence and is used by nuclear reactors to produce emission-free energy – just some of the reasons the European Union recently classified nuclear as green energy and opened the sector up to $multi-billion green financing. The same reasons have played a major role in the sentiment shift worldwide in favor of nuclear energy and uranium. Nowhere is this more evident than in Japan, where the majority of the public now support restarting the country's reactor fleet.

The uranium market is also being affected by the major geopolitical shifts related to the Ukraine invasion and the subsequent energy war. Security of supply is now changing the way that uranium consumers (power utilities) view jurisdiction. The largest suppler – Kazakhstan – sits adjacent to Russia, and The Oregon Group believes this, and related issues, will affect supply dynamics going forward.

To learn more about the uranium market, key trends, and players, you can access The Oregon Group's new report, "The Start of the Uranium Bull Market and the Coming of the Second Atomic Age" by visiting our dedicated website section for the uranium market report.

The Oregon Group is an investment research company founded by independent capital markets experts, Anthony Milewski and Justin Cochrane. The company is focused on a variety of key investment trends related to commodities and energy transition.

Legal Notice

The Oregon Group's publications are not and should not be construed as financial or investment advice nor as a solicitation, recommendation, endorsement, or offer to purchase or sell any securities or commodities in any jurisdiction. Reports produced by the The Oregon Group are information of a general nature and do not address the circumstances of any particular person, and readers are cautioned to do their own research, review publicly available information, and to consult their professional and registered advisors before purchasing or selling any securities or commodities. The Oregon Group and its directors, officers, partners, employees, authors, or members of their families, may have a position in securities or commodities referred to in publications of The Oregon Group and may from time to time make purchases and/or sales of those securities and commodities, and readers are cautioned to assume that all of the foregoing persons may have a financial interest in all securities and commodities referred to in such reports. The Oregon Group does not receive or solicit any compensation or other remuneration in respect of any recommendations contained in its publications nor does it receive any broker fees, finders fees or warrants from any third parties.

For more information, please visit theoregongroup.com or email [email protected]

SOURCE The Oregon Group