Uranium price bound for US$160 record: Sprott – by Colin McClelland (Northern Miner – January 26, 2024)

https://www.northernminer.com/

The price of uranium could surpass 2007 highs this year as utilities ramp up demand for nuclear fuel and miners hit snags in boosting supply, the world’s largest investment fund in the physical metal says.

Uranium’s highest-ever price was US$140 per lb. some 17 years ago and it could hit US$160 per lb. in 2024 from US$106 per lb. on Friday, according to John Ciampaglia, CEO of Sprott Asset Management. It runs the US$6.5 billion Sprott Physical Uranium Trust (TSX: U.U for $US; U.UN for $CAD).

“Even though the price is broken out to US$100, there’s a lot of opportunity here because you need to basically double production globally between now and 2040,” Ciampaglia told an online conference hosted by Toronto-based Bloor St. Capital on Friday. “It’s going to have to stay elevated for a very long period of time because of the long lead times and the large capex that’s required to basically get these projects built.”

The price of uranium has more than doubled from last April at around US$50 per lb. China is pushing ahead with the most (22) nuclear plants under construction to power its burgeoning middle class while 24 other nations pledged last month at a climate conference to triple atom-splitting electricity by 2050.

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