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The energy fuel also caught the attention of major technology companies looking to power artificial intelligence (AI) data centers, and was impacted by geopolitical tensions between the US and Russia.
In addition, the market benefited from growing concerns over future supply. With uranium demand poised to grow globally, the mounting imbalance became increasingly clear in the usually opaque market.
Some companies were inspired to do deals against that backdrop, punctuating 2024 with M&A activity.
While many factors added to uranium’s story throughout 2024, the most impactful trends included geopolitical risk, the accelerating energy transition and future supply concerns.
Continuing the momentum of 2023 — when the U3O8 spot price rose 86 percent between January and the end of December — uranium started 2024 at the US$91 per pound level.
By February 5, the price had risen to US$105.91, marking a nearly two decade high.
The inability to source sulfuric acid prompted the Kazakhstan-based major to revise its annual output guidance.
“Supply side fragility continued to be one of the key themes in Q1, especially the news out of Kazakhstan that production would be significantly lower than expected in 2024 than previously thought,” Ben Finegold, an associate at Ocean Wall, a London-based investment house, said in an email reviewing the first quarter.
In its adjusted 2024 uranium production guidance, Kazatomprom projected a range of 21,000 to 22,500 metric tons on a 100 percent basis, and 10,900 to 11,900 metric tons on an attributable basis.
While in line with the output of previous years, the company had to place plans for a production ramp up on the back burner due to the sulfuric acid shortage and development issues.
Finegold described the issue as “systemic,” and said Ocean Wall didn’t see it ending any time soon.
However, uranium was unable to last at the US$105 level and had retracted to US$85 by mid-March.
The price continued to consolidate through the year, and found support around US$76. Although the energy fuel has shed 27 percent from its January high, the spot U3O8 price remains in historically high territory.
Production challenges out of Kazakhstan weren’t the only supply and demand issues for uranium in 2024. By May, the war in Ukraine had intensified discussions around restrictions on US imports of Russian uranium.
“And — building off the unprecedented US$2.72 billion in federal funding that Congress recently appropriated at the President’s request — it will jumpstart new enrichment capacity in the United States and send a clear message to industry that we are committed to long-term growth in our nuclear sector.”
The US has historically relied on Russian uranium, notably through the 1993 Megatons to Megawatts program, which repurposed 500 metric tons of Russian nuclear warhead uranium into reactor fuel.
In 2022, Russian imports still made up 12 percent of US uranium supply, according to the Energy Information Administration. This dependency highlights US reliance on Russian materials for domestic energy needs.
European utilities, which are heavily reliant on Nigerien uranium, faced heightened risks, underscoring the vulnerability of supply chains linked to politically unstable regions.
The instability also impacted uranium miners and juniors operating in the region.
Despite submitting a proposal and reopening site infrastructure, Niger revoked Orano’s permit, with analysts linking the decision to shifting political dynamics following the July 2023 coup.
In response to the permit withdrawal, GoviEx Uranium has initiated arbitration proceedings against Niger.
GoviEx Uranium and its subsidiaries are seeking a resolution through international arbitration, emphasizing the importance of contractual stability in the global uranium industry.
In late November, geopolitical tensions began mounting between the US and Canada.
Canadian Prime Minister Justin Trudeau and Ontario Premier Doug Ford quickly responded to the tariff threat, underscoring the interconnectedness of both economies, as well as the energy trade between the countries.
Fortifying relationships with ally and neighbor states like Canada could prove crucial amid the US ban on Russian uranium imports. If the ban expands to Russian allies, supply from Kazakhstan and Uzbekistan — countries that contribute 25 percent and 11 percent to US supply, respectively — could also become precarious.
As pundits debated the potential impact of a tit-for-tat tariff tussle, sector participants forged ahead with deals.
NexGen Chief Executive Leigh Curyer explained that the agreements highlight the exceptional quality and scalability of Rook I. They also diversify uranium supply and align with market-based pricing strategies.
Power needs for AI data centers also emerged as a key driver in the uranium market this year.
As the energy demands of AI surge, governments and companies are turning to nuclear power to ensure a reliable, carbon-free energy supply, with supply deals beginning to emerge.
The supply deal is expected to deliver 835 megawatts of clean energy to the grid, and is also anticipated to generate over US$3 billion in taxes and US$16 billion for Pennsylvania’s economy.
“Diversity of supply is also becoming increasingly important as a response to recent geopolitical activities, including the recent US ban on Russian supplies.”
While all the abovementioned themes will continue to impact the uranium market, increased M&A activity is another emerging trend that is likely to play prominently in the year ahead.
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
The uranium market entered 2024 on strong footing after a year of significant price movement, as well as renewed attention on nuclear energy’s role in the global energy transition.
After a hitting a 17 year high in February, the uranium spot price declined and then stabilized for the rest of 2024, highlighting the fragile balance between supply constraints and growing demand.
Uranium ended the year around US$73.75 per pound, down from its earlier heights, but still historically elevated.
Heading into 2025, questions about long-term supply security, the geopolitical reshaping of the uranium market and the direction the price will take are expected to dominate industry discussions.
Investors, utilities and policymakers alike are navigating an increasingly dynamic market, looking to capitalize on nuclear energy’s pivotal role in a decarbonized future.
They can do so by expanding current mines — if the economics are viable — or by acquiring new projects.
The market began to see heightened merger and acquisition activity in 2024, and the trend is likely to continue into 2025 and beyond, according to Gerado Del Real of Digest Publishing.
“There’s no doubt about it in North America,” he told the Investing News Network (INN). “Because of the support that this incoming administration (has shown the nuclear sector) I think it is going to continue.”
He added, “I think it makes sense for some of these bigger companies to start merging and really create a market for themselves, and then take market share for the next several decades.”
The deal, which was announced in July, is currently undergoing an extended review by the Canadian government under the Investment Canada Act. Canadian officials have cited national security concerns as a reason for the extension.
A key factor is opposition from China’s state-owned CGN Mining, which holds an 11.26 percent stake in Fission Uranium. The review reflects heightened scrutiny over critical uranium resources amid geopolitical tensions and global energy security concerns. The prolonged evaluation is now set to conclude by December 30, 2024.
On December 18, 2024, Paladin secured final approval from Canada’s Minister of Innovation, Science, and Industry under the Investment Canada Act, clearing the last regulatory hurdle for its merger. With only standard closing conditions remaining, the deal is set to finalize by early January 2025.
The acquisition will also position IsoEnergy as a potentially major US producer.
“We’ll be looking toward some pretty robust M&A In 2025,” said Del Real.
Uranium One Group, a Rosatom unit, sold its 49.979 percent stake in the Zarechnoye mine to SNURDC Astana Mining Company, controlled by China’s State Nuclear Uranium Resources Development Company.
Additionally, Uranium One is expected to relinquish its 30 percent stake in the Khorasan-U joint venture to China Uranium Development Company, linked to China General Nuclear Power.
For Chris Temple of the National Investor, the move further evidences the notion that China is using backdoor loopholes to circumvent US policy decisions for its own benefit.
“China is selling enriched uranium to the US that’s actually Russian-enriched uranium — but (China) owns it,” he said. “It’s the same as when China goes and sets up a car factory in Mexico, and Mexico sells the cars to the US.”
Geopolitical tensions are also anticipated to play a key role in uranium market dynamics in 2025.
In response to the Russian uranium ban and other sanctions stemming from the Russian invasion of Ukraine, the Kremlin levied its own enriched uranium export ban on the US in November.
With a potential shortfall of 6.92 million pounds looming for the US, strategic partnerships with allies will be crucial.
“If we take a North American — and this includes Canada — (approach), we can find enough supply for the next several years. I am a firm believer that after the next several years of contracts have gobbled up and secured the supply that’s necessary, that we’re just going to be short unless we have much higher prices,” said Del Real.
Canada is home to some of the largest high-quality uranium deposits, making it a plausible source of US supply.
Continental collaboration was an idea that was reiterated by Temple.
Despite the incoming president’s tough rhetoric, both Del Real and Temple see it more as a negotiation tactic.
“The cynical part of me doesn’t believe that the tariffs will actually be implemented in any sort of sustainable way, because I’m not a fan. They’re not effective. They’ve been proven to not be effective. They hurt the consumer more than anyone else, and I don’t think that the incoming administration is going to want to start by ramping prices up,” said Del Real, noting that it remains to be seen if the tariff strategy is deployed like a “chainsaw or a scalpel.”
Temple also underscored the need for diplomacy and unification between the US and Canada.
“Trump has made a lot of threats about what he’s going to do as far as tariffs and whatnot. But again, his whole tariff policy is using a sledgehammer in multiple places when a scalpel in fewer places is appropriate,” he said.
He went on to explain that the tariffs are meant to impact China, but the policy is not well targeted. He believes there needs to be more wisdom and nuance in dealing with China, rather than just relying on overarching tariffs.
More broadly, Temple warned of the potential consequences of pushing China too hard and destabilizing the global economy, a concern he sees as a factor that could be very impactful in 2025.
China’s economic troubles, driven by an unprecedented debt-to-GDP ratio, are a looming concern for global markets, Temple added. While much of the focus remains on tariff policies, the bigger issue is China’s fragile economic position, with mounting challenges that require more nuanced strategies than punitive measures like tariffs.
If political tensions escalate — especially under a Trump presidency — market confidence could erode further as businesses look to exit China.
Resource nationalism is also seen playing a pivotal role in the uranium market next year.
As African nations like Niger and Mali look to reshape their domestic resource sectors, uranium projects in those jurisdictions will have a heightened risk profile.
“I think (jurisdiction) will be critical,” said Del Real. “I think it has been critical.”
He went on to underscore that with equities currently underperforming, using jurisdiction as a barometer is easier.
“The silver lining that I see as a stock picker and somebody that invests actively in the space, is that it’s so much easier for me to pick the companies that are in great jurisdictions when I’m getting a discount,” said Del Real.
“There’s no reason for me to risk my capital in a part of the world where I’m not familiar, where I can’t do the type of due diligence that I would like to be able to do,” he went on to explain to INN. “There’s no need to be the smartest person in the room and take on disproportionate risk as it relates to jurisdiction geopolitics, because you have a lot of great companies in great, great jurisdictions that are trading for pennies on the dollar.”
For Temple, the scramble to secure fresh pounds could lead to a fractured market. “I think there’s going to be a bifurcation in the world, where eastern uranium is going to stay in the east. Western uranium is going to stay in the west. As we ramp back up and some of what’s in between, maybe including Africa, will get bid over,” he said.
Adding to this bifurcation could be a green premium on uranium produced using more sustainable methods such as in-situ recovery. This “green” uranium could demand a higher price than recovery methods that rely on sulfuric acid.
“There is more likely to be a green premium, and beyond a green premium it’s a matter simply of logistics and shipping costs and all of those things — and, of course, resource nationalism,” said Temple.
He also pointed out that globalization is increasingly being reevaluated, with national security and environmental concerns driving a shift toward regional supply chains and localized production.
Even without recent tariff and trade disputes, the push to reduce dependency on global markets has been growing for years, fueled by legislation like the EU’s distance-based import taxes.
This trend suggests a premium on domestically produced goods and resources.
With so many tailwinds building for uranium, it’s no surprise that Del Real and Temple expect the price of the commodity to rise back into triple-digit territory sooner rather than later.
“I think that inevitably, the spot price is going to have some catching up to do with the enrichment prices, as well as the contract prices,” said Temple. “It’s a no-brainer that we get back in triple digits sooner rather than later in 2025, and ultimately I think you’re looking easily in the next few years at US$150 to US$200.”
He cited the rise of artificial intelligence data centers as one of the main price catalysts.
For Del Real, the spot price has found a new floor in the US$75 to US$80 range, with higher levels to come.
“I think we’ll finally be at triple digits in the uranium space,” he said. “(It didn’t take a lot of) time to get from US$20, US$30 to US$70, US$80 and then it was a real straight line past the US$100 mark into consolidation,” he said. “I think the utilities are going to start coming offline. And I absolutely see a sustainable triple-digit price in the uranium space for 2025.”
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Uranium values have spent much of the last six months contracting after a strong start to the year.
Justin Huhn, founder and publisher of Uranium Insider, spoke with the Investing News Network in early October about what’s depressed prices in 2024 and where the energy fuel is likely to go in the months ahead.
“I’ve been following this market for about seven, pushing eight years,” he said. “At this point, I’ve seen a lot of volatility, some screaming rallies, some extremely difficult-to-handle pullbacks and terrible sentiment on multiple occasions.”
The topsy-turvy nature of the sector has weighed on investors, with sentiment taking a hit mid-year.
“I would argue that the sentiment in the sector was worse than I’ve ever seen it this summer, which is extraordinary.”
Although prices have slipped around 20 percent since January’s highs, they had stabilized by early October.
The uranium insider expects prices for the commodity to start moving higher this month.
“The US utilities have a new budget with the beginning of the fiscal year,” he explained.
Adding to that positive sentiment, Huhn noted that the long-term outlook for uranium and nuclear power demand is very positive, driven by factors like growth in data center electricity demand, support from major banks and tech companies and policy initiatives from the US Department of Energy.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
John Ciampaglia, CEO of Sprott Asset Management, discusses uranium supply, demand and price developments, honing in on recent deals geared at feeding power demand for artificial intelligence (AI).
“I think it’s inevitable that (small modular reactor) technology gets commercialized and scaled, and that’s the part that has been relatively new,” he told the Investing News Network during an interview.
“We never would have guessed it would have been AI data centers that kicked it all off, but I think it’s a very exciting development, and it helps to really validate the thesis that we’ve been talking about for over three years at this point.”
Ciampaglia also spoke about the potential impact of the US election, saying that while Republicans have historically been more pro-nuclear than Democrats, the industry is now receiving bipartisan support.
“Irrespective of who wins, we think nuclear is going to continue to receive support,” he emphasized.
Watch the interview above for more of his thoughts on uranium supply, demand and prices.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Keith Watson and Rob Crayfourd, co-fund managers at the Geiger Counter Fund, shared their outlook on uranium supply, demand and prices, plus which companies they think have the most potential moving forward.
While acknowledging the recent price pullback, the experts said the sector’s long-term outlook is positive.
“Ultimately we’re at the very start of what we expect to be a longer-term imbalance in supply vs. strong demand, and therefore a very healthy price outlook for the sector,” Watson explained during the interview.
When asked about the Geiger Counter Fund’s focus, Crayfourd highlighted the Athabasca Basin in Saskatchewan, Canada, saying it’s a tier-one jurisdiction that’s home to a slew of strong uranium assets.
Watson added that it also has exposure to US companies with small but reasonable production profiles that are in the process of starting or restarting output, as well as leverage via stocks with slightly higher-cost deposits.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Uranium started the year strong, reaching a 17 year high of more than US$100 per pound on the spot market.
Early in the year, production challenges related to sulfuric acid shortages and expansion delays out of Kazakhstan, the world’s top-producing country, sparked worries about supply security and shortages.
Geopolitical instability was a factor in Niger as well, with the nation’s military government revoking permits.
Data centers and the energy to power them also emerged as a prevalent theme in the uranium market this past year, with major tech companies scrambling to secure long-term supply agreements for clean energy.
At the end of the year, the market got more structural support as six more countries committed to tripling nuclear power supply by 2050. They joined the original 25 nations that originally made the commitment.
Read on to learn what factors have been moving their share prices.
Year-to-date gain: 79.22 percent; market cap: C$107.25 million; share price: C$0.69
CanAlaska Uranium is a self-described project generator with a portfolio of assets in the Saskatchewan-based Athabasca Basin. The region is well known in the sector for its high-grade deposits.
In July, a summer drill program at West McArthur’s Pike zone made two significant intersections.
Year-to-date gain: 74.47 percent; market cap: C$24.48 million; share price: C$0.82
Canada-focused Greenridge Exploration is engaged in the exploration of the Nut Lake uranium project in the Thelon Basin in Nunavut, Canada, and has acquired several uranium projects this year.
Year-to-date gain: 68.75 percent; market cap: C$35.18 million; share price: C$0.27
District Metals is an energy metals and polymetallic explorer and developer with a portfolio of nine assets, including five uranium projects in Sweden. It’s currently focused on its Viken property, which hosts a uranium-vanadium deposit.
Historic estimates conducted in 2010 and 2014 peg the indicated resource at 43 million metric tons with an average grade 0.019 percent U3O8, with another 3 billion metric tons with an average grade 0.017 percent U3O8 in the inferred category. According to the company, Viken is one of the “world’s largest in terms of uranium and vanadium mineral resources.”
“We are very pleased with the timely approvals for our eight mineral license applications that cover a total of 91,470 hectares of ground that is highly prospective for Alum Shale deposit targets,” said Garrett Ainsworth, CEO of District. “Alum shales are the host rocks of our Viken Energy Metals Deposit, which represents a potentially significant source of critical and strategic metals and minerals for the green energy transition.”
Year-to-date gain: 45.95 percent; market cap: C$13.75 million; share price: C$0.27
Myriad Uranium is an exploration company with a 75 percent earnable interest in the 1,911 acre Copper Mountain uranium project in Wyoming, US. The property holds several known uranium deposits and historic mines, including the past-producing Arrowhead mine, which previously produced 500,000 pounds of eU3O8.
CEO Thomas Lamb explained the decision to leave the African country.
“Myriad has been prevented by reasons beyond its control from conducting operations in Niger since the July 2023 coup d’etat,” he said. “We are now focusing all our attention on the Copper Mountain uranium project in Wyoming, USA., a project with significant past production, a large historical uranium resource, and exciting exploration upside.”
Year-to-date gain: 16.13 percent; market cap: C$69.96 million; share price: C$1.80
Premier American Uranium is engaged in consolidating, exploring and developing uranium projects across the US.
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
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