The uranium price may be down this year, but my long-term bullish outlook on uranium hasn’t changed… In fact, I’m more bullish now than ever! After all, the number of countries and companies looking to adopt nuclear power continues to soar. And that ultimately means one thing…
Demand for uranium will boom!
Of course, demand is just one side of the equation.
What about uranium supply?
Well, that’s where the catalyst for higher prices in 2025 will come from.
Let me explain why…
Uranium mining is hard…
Back in May 2024, President Biden signed a bill which prohibited enriched uranium imports from Russia. However, there were exceptions. Under a system of waivers, the bill allowed certain companies – such as Centrus – to import from Russia.
Interestingly, these exceptions underscored a major issue facing the US nuclear/uranium industry: The US doesn’t produce enough enriched uranium.
And that’s a BIG problem.
After all, nuclear provides almost 20% of the US’s electricity. So, it desperately needs to find supply.
Sure, US uranium players have recently reopened mines, and in some cases, already started production. But the reality is uranium mining is far from easy.
Consider that not a single US uranium mine restart has hit their production targets yet!
Simply put – US uranium supply is not coming to the country’s rescue anytime soon. And don’t expect Russia to help.
More than a quarter of enriched uranium supply to the US – GONE!
That right…
In mid-November 2024, Russia announced it would limit the supply of enriched uranium to the US. While the Russian government didn’t provide details of the restrictions or their duration, they did reveal it was in response to the ban imposed by the US.
It’s a big deal…one that will worsen the US uranium supply dynamics in the medium-to-long-term. After all, Russia supplied around 27% of the US’s enriched fuel in 2023.
Because nuclear utilities tend to buy uranium in advance, the ban in the short-term is negligible.
However, I think we’ll start to see real pressure in the uranium market in mid-2025, as utilities struggle to find alternative suppliers.
Sprott also confirmed there will not be enough uranium supply coming online to meet demand in 2025 and beyond. While Cameco – one of the world’s biggest uranium miners – thinks Russia’s ban poses significant risks to uranium supply.
Ultimately, that’s a recipe for higher uranium prices in 2025.
How high?
Well, conservative experts see uranium prices blowing past the $100 level it achieved in 2023.
While bullish experts think $150 uranium in 2025 is not out of the question.
Either way, the nuclear/uranium markets remain one of my top investment destinations in 2025.
PS. To know what I’m buying in the nuclear space for South African Investor, make sure you get our exclusive Nuclear Renaissance report – just go here to claim a copy.
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