Is Uranium an investment in the future?

Team Veye | 06-Feb-2022 Uranium an investment

Many countries are having Uranium deposits but not all deposits can be recovered economically. However, prevailing uranium prices play an important role in deciding whether a deposit is economically viable.

Kazakhstan, Canada and Australia produce nearly 70% of the world’s uranium. But countries with low cost recoverable sources have an advantage when it comes to uranium production.

Uranium has experienced a wide price range this past century — while its highest level was nearly US$140, the lowest U3O8 spot price came in at just US$7.

In the recent times, the global importance of decarbonisation and electrification has been increasing continuously and substantially. Both require carbon free nuclear power to achieve stated goals as it is central to the clean energy transition.

Nuclear power is on the global agenda and it can be said with some certainty that the goal of Net zero emissions by 2050 cannot be achieved without nuclear. Nuclear provides reliable baseload power. The world’s nuclear reactors will require an increasing supply of uranium.

Uranium prices have been suppressed for over 10 years. Many uranium projects have remained uneconomic at current uranium prices. Industry experts believe that the uranium market cycle has reached its bottom and that a break to the upside for uranium prices is supported by positive supply and demand fundamentals.

The demand for electricity is only going to keep rising and the global push towards green energy continuing to grow stronger as climate change’s effects become more obvious, the demand for nuclear power is going to surge. Uranium price can have the potential to rise significantly to incentivise uranium production.

A uranium investment isn't just sound fiscal decision-making, it's an investment in the future of the planet.


Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website, and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.

veye logo

Grab Your Free Report On 5 ASX Dividend Stocks To Buy In 2024