Nuclear Power Boom to Fuel 50-100% Uranium Price Surge Through 2025, Boosting Miners

• Uranium prices are rising rapidly due to increasing demand and constrained supply. New nuclear power plants being built globally will require more uranium fuel.
• Copper prices breaking above $4.50/lb could signal rising industrial inflation globally. Other commodity prices may also increase.
• Oil demand continues growing globally, with record gasoline demand in 2024. Prices could break above $85/barrel soon.
• The Fed is likely to raise rates in 2024 or hold them higher for longer to drain global dollar liquidity. Seven rate cuts this year are unlikely.
• Inflation may heat up again in the U.S. if wholesale gasoline prices sustain at higher levels for several months. This could negate recession fears.

The Global Nuclear Power Boom Makes a Compelling Case for Uranium

Nuclear power is undergoing a global renaissance as countries in Asia and elsewhere invest heavily in new nuclear electricity generating capacity. This is creating massive demand for uranium fuel while supply remains constrained. Prices are already rising rapidly as a result.

The situation in uranium is getting really interesting for investors. Soaring demand from the dozens of new nuclear reactors being built by Russia's state-owned Rosatom overseas and China's incessant power needs. Most of these plants will be fueled by Rosatom under +0 year build-operate-transfer contracts before ownership transfers eventually. The Russians are going to make so much money building nuclear power plants for people. Given Russia’s existing dominance in processed uranium fuel and enrichment services globally, surging demand promises huge profits.

Rising Asian nuclear power demand is a primary catalyst. Plants under construction will need Russian-supplied fuel, likely under long-term contracts. With limited global supply and few major uranium deposits left, prices are reacting. Investor speculation has also poured into uranium stocks. Dramatic uranium gains will continue. Such confidence in growth underlines the opportunity. However, risks certainly remain given uranium’s volatility.

Nuclear Expansion Driving Uranium Higher, Fueling Miners Up 40-50%

Rising global demand for emission-free nuclear energy poses a compelling investment case for uranium producers. Dozens of new reactors slated for emerging economies require vast uranium fuel. This intensifying appetite colliding with constrained mine output has sent uranium prices surging.

Uranium dynamics continue looking abundantly bullish through 2025. Given relentless nuclear power growth overseas, scarcity promises much steeper spot price gains. Related mining stocks and ETFs like the Global X Uranium Fund could still accumulate 40-50%.

One catalyst is the state-owned Russian company Rosatom constructing reactors abroad under long-term fuel supply contracts. With Russia dominating processed uranium capacity globally, more builds pad its profits. Especially as most new nuclear plants arise in Asia, Russia is well-positioned to service this demand from its steadfast client Kazakhstan. Tight supply elsewhere compounds the investment opportunity.

Inflation Concerns Return Spotlight to Gold

While recession debates simmer, indicators highlight gathering inflationary risks which favor gold. Copper breaking above $4.50 per pound foreshadows broad global inflation. This essential industrial input features ubiquitously in manufacturing and construction. If sustained copper price gains materialize, other commodities often follow its lead upwards.

Relatedly, crude oil hitting $85 per barrel tends to drive general inflation higher, with potential to reach perhaps $90 per barrel in 2024 given relentlessly robust consumption metrics. Despite ecological pressures, world demand for transport fuels like gasoline set fresh annual records last year, counter to peak oil expectations. Surging post-lockdown mobility in developing economies underpins this unslakable thirst.

In the past, oil exceeding $85 igniting wider inflation has spurred safe-haven gold buying to protect against fiat erosion. Its role as a non-correlated store of value theoretically hedges currency debasement risk. And since rising raw material costs may overwhelm central bank policies, gold merits portfolio inclusion today. Investors can deploy miners and ETFs like GLD or IAU to harness secular gains if inflation indeed sticks at higher levels.

The Investment Thesis for Uranium and Gold

• New nuclear electricity demand should drive uranium prices much higher through 2025, creating an opportunity to profit. Investors might consider uranium miners and the Global X Uranium ETF on price dips.
• Gold should benefit if the global economy sees sustained higher inflation from rising oil and copper prices. Exposure to gold and gold miners makes sense as a hedge against potential currency debasement.
• Geopolitical tensions, war impacts, and supply chain issues add to commodity volatility. This instability tends to spur demand for gold and other perceived safe assets.
• Central bank tightening may slow if recession risks mount globally. However, an inflationary mindset shift could overwhelm policies seeking to temper commodity prices longer-term.
• Investing based on historically informed supply/demand fundamentals can offer resilience against unpredictable economic data. Uranium and gold investing check these boxes given their narrow markets.

In summary, compelling upside exists for uranium as more nuclear plants get built worldwide. Copper and oil price signals point to gathering inflation too, which favors gold investing to offset currency risk. Value investors or inflation hawk traders should evaluate buying into price weakness.

Companies to Watch‍

‍Bannerman Energy

Bannerman Energy is an Australian uranium development company focused on advancing its flagship 3.5Mlb pa open pit uranium project in Namibia, a major global uranium producer. Bannerman is currently working on Front End Engineering and Design (FEED) and financing for the Namibia project. The company also holds a significant 41.8% stake in Namibia Critical Metals, developer of the large-scale Lofdal heavy rare earths project in Namibia, one of only a few heavy rare earth deposits outside China.

Ur-Energy

Ur-Energy is a U.S. uranium mining company well positioned to benefit from rising uranium prices driven by growing demand for nuclear power. Within-situ recovery operations in Wyoming, Ur-Energy has been producing from its Lost Creek facility since 2013 and can now effectively double licensed annual production capacity to 2 million pounds with its permitted Shirley Basin project. With over $70 million in cash, Ur-Energy is funded to ramp up low-cost production from its Wyoming hub as it restarts wellfield construction. The company utilizes mining methods with a light environmental footprint and advancing next-generation technologies to further reduce costs. If uranium prices continue strengthening, Ur-Energy offers leverage as an experienced producer with scalable, permitted projects in a rising uranium market.

Global Atomic

Global Atomic Corporation is a publicly traded company with two main divisions - a Uranium Division that is developing the large, high-grade Dasa uranium project in Niger, which is now fully permitted with excavation underway, and a Base Metals Division that holds a 49%stake in a zinc production joint venture in Turkey operated by Befesa. The joint venture recycles Electric Arc Furnace Dust to produce zinc oxide concentrate sold to zinc smelters globally. Global Atomic’s unique combination of uranium production and cash-flowing zinc operations positions it well for growth.

Energy Fuels

Energy Fuels is the largest uranium and advanced rare earth element producer in the United States. The company has significant uranium production capacity and long-term sales contracts with U.S. nuclear utilities that it expects to fulfil starting in 2023-2024. Energy Fuels is also quickly moving to establish a domestic rare earth element supply chain, with plans to produce high-value separated REE oxides by late 2023 or early 2024. The company additionally produces vanadium when conditions warrant, recycles materials to recover uranium, vanadium and medical isotopes, and is advancing capabilities for medical isotope production. Overall, Energy Fuels is a major U.S. producer of strategic minerals like uranium and rare earth elements that are critical for energy, technology, and medical applications.

American Lithium

American Lithium is developing large-scale lithium projects in Nevada and Peru as well as one of the world's biggest uranium projects, with the goal of playing a major role in the transition to sustainable energy. The company's assets are the advanced-stage TLC lithium project in Nevada and the Falchanilithium project in Peru, which have robust preliminary economic assessments. American Lithium also owns the Macusani uranium project in Peru, which has seen significant historical development. With assets at various stages of pre-feasibility and feasibility studies, American Lithium is positioned to be a major player in lithium and uranium mining.

Deep Yellow

Deep Yellow has systematically built a portfolio of high-quality uranium assets to establish a significant production platform and realize its vision of becoming a leading international uranium mining company. With its experienced leadership team at the helm, Deep Yellow has set its sights on diversified production of over 10 million pounds per year, capitalizing on forecast supply squeezes. Its flagship Tumas mine in Namibia already claims one of the world's largest undeveloped uranium deposits as Deep Yellow advances toward a 2024 construction decision. Meanwhile, its Mulga Rock project in Western Australia progresses through feasibility studies for targeted development. Beyond existing core assets, Deep Yellow has accumulated extensive exploration ground at two prime locations in Namibia and Australia's Northern Territory through strategic acquisitions. These prospects provide substantial opportunities for unlocking further discoveries to continually expand its project pipeline over time. As energy security needs escalate globally, Deep Yellow stands ready to deliver the reliable uranium production that transitioning electricity grids urgently demand. With its production timeline aligned with major forecast supply deficits, Deep Yellow aims to cement itself as the go-to uranium supplier of choice for nuclear utilities worldwide seeking security and diversity of supply. Backed by disciplined leadership, Deep Yellow represents an emerging industry force promising investors exposure to the full lifecycle of value creation across resource discovery, project development and multi-decade uranium production. By targeting low-cost mining jurisdictions, adopting proven processing technologies and securing key infrastructure advantages, Deep Yellow has systematically built itself to deliver sustainable investor windfalls as the uranium bull market unfolds.

Baselode Energy

Baselode Energy is a Canadian uranium exploration company focused on the Athabasca Basin area in northern Saskatchewan. The company controls over 264,000 hectares of land that is free of any option agreements or underlying royalties. In September 2021, Baselode discovered the near-surface ACKIO uranium prospect on its exploration properties. The ACKIO prospect measures over 375 meters long and over 150 meters wide, with at least 9 separate uranium mineralized zones. Mineralization starts as shallow as 28 meters and 32 meters beneath the surface, extending down approximately 300 meters depth, with most mineralization occurring in the top 120 meters. The ACKIO prospect remains open at depth and to the north, south and east for further expansion. Baselode's exploration strategy centers on discovering high-grade uranium deposits outside of the Athabasca Basin near the surface in basement rocks. The company uses innovative and established geophysical survey methods to identify prospective shallow drill targets for high-grade uranium mineralization related to underlying structural controls. This technique has led Baselode to the discovery of the ACKIO prospect.

Nucelar Fuels

‍Nuclear Fuels Inc. is a Canadian uranium exploration company focused on in-situ recovery (ISR) projects in Wyoming and other proven jurisdictions globally. The company's priority asset is the Kaycee project in the Powder River Basin of Wyoming. This project has historical uranium resources distributed along a 33-mile mineralized trend with over 110 miles of mapped roll fronts. The property has been drilled extensively with over 3,800 historical drill holes. Nuclear Fuels has consolidated control of the Kaycee district, acquiring multiple historical uranium deposits and exploration targets. This positions the company to potentially advance the project portfolio into production. Beyond Kaycee, Nuclear Fuels plans to leverage its technical expertise to explore additional uranium properties and opportunities in established mining districts globally. Through aggressive exploration and consolidation of historical resources, the company aims to develop a pipeline of projects, prioritizing those that can be fast-tracked to production using the in-situ recovery mining method.

IsoEnergy

‍IsoEnergy is a Canadian uranium exploration and development company with projects focused in the Athabasca Basin of Saskatchewan. The company's flagship property is the Larocque East project in the eastern Athabasca Basin. This project hosts the high-grade Hurricane uranium deposit, which has the highest grade Indicated uranium resource globally. In addition to its exploration projects, IsoEnergy owns several permitted, past-producing uranium and vanadium mines in Utah. These mines are currently on standby but can be rapidly restarted to position IsoEnergy as a near-term uranium producer. The company has a toll milling agreement in place with Energy Fuels Inc. to process ore from its US projects. Beyond its Canadian and US assets, IsoEnergy holds uranium projects in various stages of exploration and development in Australia and Argentina. This diversified portfolio provides leverage to rising uranium prices across different jurisdictions. The company is advancing its Athabasca Basin projects while continuing the exploration on its global assets to drive future production growth.

Atha Energy

ATHA Offers Leveraged Exposure to World-Class Uranium Districts Athabasca Uranium Inc. (ATHA) provides investors with targeted leverage to potentially significant uranium discoveries across some of the world’s most prolific regions for new supply. As a focused mineral exploration company, ATHA has methodically accumulated the single largest exploration package covering the renowned Athabasca Basin. Spanning over 6 million acres, their claims provide unrivalled exposure to this district which has historically produced high-grade uranium deposits. Additionally, ATHA holds extensive prospective ground in the similarly uranium-rich Thelon Basin. Between these two core holdings in prime Canadian uranium provinces, the company has positioned itself amongst acreage with a proven exploration upside. Importantly, a subset of ATHA’s Athabasca land package involves a 10% carried interest in claims operated by sector leaders NexGen Energy and IsoEnergy. With ATHA carried through key exploratory expenditures, this allows leveraged participation alongside seasoned management advancing projects in the basin. For investors, ATHA brings focused leverage to maximizing discovery potential across districts that have delivered huge economic uranium resources. As sentiment improves around uncovered uranium value still unearthed in these Canadian districts, ATHA offers a targeted way to ride the upside. Their vast claim packages in underexplored but prolific terrain form the springboard for potential mineral discovery and resource growth in the coming bull cycle.