Nuclear and Renewable Resources

Key messages:

• Nuclear reactors offer stable base load power that is not weather dependent and complements renewable power such as wind and solar.
• The uranium market is faced with a pronounced structural supply/demand deficit that is expected to grow significantly.
• The uranium required to meet the fuel demand for current nuclear reactor construction, or planned and proposed reactor construction, challenge the uranium mining production and inventory.
• Governments globally recognize nuclear power's role in providing dependable electricity for combatting climate change.

Description

Investing in uranium presents an exciting opportunity to be part of the global energy transformation. The world demands cleaner and more sustainable power sources, and uranium, the only fuel essential for nuclear power, emerges as a compelling investment choice. Here are some key reasons why you should consider investing in our Uranium Investment strategy

1. Nuclear Power Demand: Nuclear power offers a dependable source of electricity, vital to fulfilling the escalating global need for stable baseload power. This demand, arising from the limitations of intermittent and unreliable renewables like wind and solar, accentuates the growing significance of uranium. As nations pursue sustainable energy alternatives, nuclear power emerges as a pivotal player, capable of meeting the rising energy consumption trends. With the trend toward increased electrification world-wide, nuclear power will command a vital role, driving the demand for uranium..
2. Supply and Demand Dynamics: The uranium market has grappled with a pronounced structural supply deficit since 2020. This imbalance has been driven by increasing demand and limited production capacity, and is compounded by geopolitical tensions. Uranium production is highly concentrated in politically sensitive regions, including Kazakhstan, Namibia, Uzbekistan, Russia, and Niger, collectively accounting for over 65% of global reserves. The danger of potential supply disruptions looms large, exerting a significant impact on uranium prices. This dynamic further underscores the investment strategy's objective of leveraging substantial price appreciation opportunities.
3. Nuclear Revival: Several countries, including China, India, Russia, and European nations, and even middle- eastern oil countries such as UAE and Saudi Arabia , are actively investing in nuclear power to reduce fossil fuel dependence and ensure stable electricity supply. China, for instance, plans to double its nuclear capacity by constructing over 150 reactors by 2035, potentially surpassing the world's cumulative reactor construction of the past 35 years. Fulfilling this ambition necessitates a decade of substantial uranium inventory, thereby contributing to additional demand.
4. Small Modular Reactors  (SMRs): Nuclear technology is undergoing a transformative shift with the development of modular reactors (SMRs). SMRs stand out for their modularity, cost effective manufacturing, enhanced safety, and portability, creating avenues for uranium investors. Some SMR designs even offer the unique ability to burn spent fuel waste from conventional reactors, addressing concerns about nuclear waste. This innovative potential adds a compelling dimension to the uranium investment landscape.
5. Government Support and Incentives: Governments globally recognize nuclear power's role in energy security and emissions reduction, accelerating its growth with measures like tax breaks and subsidies. This substantial support creates a favorable environment for uranium investors. Moreover, the sector's alignment with government goals contributes to its resilience against economic cycles and recessions, ensuring sustained capitalization and contract fulfillment.

Strategy manager's recent publications:

1. 2024 a year ahead outlook (published on 18.01.24)
2. The 1st quarter 2024 sector update and remarks (published on 15.04.24)