Tuesday, October 21, 2025

Uranium Prices Sent Soaring as Investors Bet on Higher Demand, Depleting Supplies

The competition for uranium supplies among nuclear power providers has ramped up as of late, as an increasing number of financial investors bet on a bullish sector.

Raw uranium, also known as yellowcake, has seen prices skyrocket to the highest since 2014, as a newly-created investment trust from Canadian-based Sprott Asset Management snaps up uranium supplies. Since first launching an at-the-money program in August, the asset manager has bought over 10 million pounds of uranium via its Sprott Physical Uranium Trust (TSX: U.UN).

The trust plans to purchase even more uranium, upping its initial ATM financing from $300 million to $1.3 billion, helping push uranium prices even further upwards. When combined with previously purchased uranium from a former fund, Sprott’s total uranium holdings amount to over 28.3 million pounds of the metal, which could provide enough power for France’s entire nuclear industry for a year.

Sprott’s sharp buying tactics will likely create added pressure on utilities, many of which need to ensure adequate supplies necessary for vital energy generation. The latest demand for yellowcake also comes as China is expected to ramp up its nuclear power capacity for the next ten years. As of current, long-term contracts account for 98% of yellowcake required by utility companies in the US; however, that figure is expected to decline to 84% come 2022, followed by a decline to around 55% before 2025, according to projections from Yellow Cake.

According to data obtained from the World Nuclear Association, demand for yellowcake is expected to rise form 162 million pounds to around 206 million pounds before the end of the decade, followed by a further increase to 292 million pounds by 2040. Simultaneously, uranium supplies are expected to decline by about 15% by 2025, followed by a subsequent depletion of at least 50% by the end of the decade, as investment into new mines dries up.

The Covid-19 pandemic also helped erode uranium supplies, as Cameco, one of Canada’s largest mining companies, temporarily halted production at its Cigar Lake mine in response to labour shortages. Since the beginning of the year, Cameco shares have jumped by nearly 70%.

In the meantime, the Sprott uranium trust, which currently trades on the TSX, plans to make its public debut on the NYSE sometime in 2022, which according to Canaccord, could lead to additional purchases. The Sprott Physical Uranium Trust buys physical uranium stored in Canada, the US, and France via WMC Energy. In exchange, Sprott collects a 0.35% management fee, in addition to a 1% commission fee based on the gross value of purchases or sales of uranium.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Steadright Enters MOU To Acquire Historic Goundafa Polymetallic Mine In Morocco

Military Seizes Power in Madagascar After President Flees

Related News

Why Denuclearization is a Threat to Uranium Stocks | Lobo Tiggre

In this interview from Red Cloud’s pre-PDAC 2025 conference, investment expert Lobo Tiggre provides a...

Tuesday, March 4, 2025, 02:04:00 PM

Senate Passes ADVANCE Act, Allowing Biden to Sanction Rosatom

The US Senate has approved the ADVANCE Act, a comprehensive clean energy bill aimed at...

Wednesday, June 19, 2024, 11:27:00 AM

Cameco Places Cigar Lake Uranium Operation On Care And Maintenance Due To COVID-19

Cameco Corp (TSX: CCO) has placed its Cigar Lake mine on care and maintenance while...

Monday, December 14, 2020, 10:52:35 AM

Biden Signs Ban On Russian Enriched Uranium Imports

US President Joe Biden signed a bill on Monday prohibiting the import of Russian enriched...

Tuesday, May 14, 2024, 11:09:49 AM

Pegasus Resources Looks To Make Its Mark In The Uranium Space

On October 7, 2021, Pegasus Resources (TSXV:PEGA) announced that it has acquired several uranium properties...

Saturday, October 9, 2021, 02:21:00 PM