Making sense of the market for uranium

As the world’s energy networks continue to shift, uranium offers investment opportunities that are not always easy to discern.

Uranium spot prices have multiplied in the past few years as governments have scrambled to meet net-zero targets, and Russia, a major supplier, has been shut out of western markets following the Ukraine invasion.

The enigmatic radioactive element has presented a solid investment for some time now, but the nature of the opportunity continues to shift as the world rewires its energy networks.

Uranium’s supply, compromised by years of low investment in the wake of the 2011 Fukushima disaster, is highly concentrated: four countries produce 75% of the world's uranium, and just five mines produce 50%. Kazakhstan’s national nuclear company, Kazatomprom, and Canadian giant Cameco Corporation are the two big global producers. The World Nuclear Association forecasts demand for uranium will double to 130,000 tonnes by 2040. Spot prices, which bumped along at $20 to $30 in the wake of Fukushima, have risen by as much as 50% in the past 18 months, peaking at over $100 per pound earlier this year.