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The Oregon Group Report Highlights Strong Uranium Market Fundamentals Amid Geopolitical Tensions
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AI and Datacenters drive increased demand for clean reliable energy
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Under investment in the uranium market and supply chain issues may cause supply disruptions over time
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Uranium demand to outpace supply
TORONTO – TheNewswire - May 8, 2025 - Global uranium prices are increasingly disconnected from rising supply-demand imbalances, according to a new report. The Oregon Group forecasts that, despite recent fluctuations in uranium prices, the longer the disconnect between prices and demand, the greater the pressure for price growth beyond the levels we saw in 2024.
The report identifies several key factors influencing the uranium market, including the continued rise in new and restart nuclear reactors, demands from data centers to power Artifical Intelligence, advances in small modular reactor (SMR) technology, and the growing demand for clean, reliable energy sources. This follows years of underinvestment in uranium production, geopolitical tensions disrupting supply chains, and dwindling stockpiles.
“The uranium sector is currently experiencing one of the largest disconnects between market sentiment and supply fundamentals we’ve ever seen,” said Anthony Milewski, founder of The Oregon Group. “While uranium equities have seen pullbacks in recent months, long-term supply constraints are building, positioning uranium as a critical asset for investors.”
While the price of uranium saw an increase from 2022 to 2024, market conditions indicate that the current supply gap will persist for years, creating significant upside potential for uranium producers and developers.
Notably, major uranium players like Kazakhstan’s Kazatomprom (LSE: KAP) and Canada’s Cameco (TSX: CCO) are positioned to capitalize on higher prices as they are among the few with significant production capacity. However, the majority (if not, all) of Kazatomprom’s supply is expected to go to China and Russia. At the same time, advanced development projects, including NexGen Energy (TSX: NXE) and Denison Mines (TSX: DML), are poised for growth but face delays that will prevent them from contributing to the immediate supply needs.
Uranium’s critical role in the global energy transition is also underscored by its importance to AI data centers, which are projected to double electricity consumption by 2030. The report highlights that nuclear energy’s ability to meet growing electricity demands, particularly from AI-driven applications, will place further pressure on uranium supply.
One uranium executive noted, “The coming supply gap is inevitable, and the market is preparing for a price response that reflects the growing urgency. Our team is focused on advancing our projects across secure jurisdictions, to ensure that we can meet this demand as quickly as possible. While we’re still in the development phase, our assets are well-positioned to play a significant role as the market tightens in the coming years.”
“We’re facing a major supply crunch in uranium. Even with higher prices, new projects will take years to bring online,” said Milewski. “This creates a unique opportunity for investors to position themselves ahead of the coming supply-demand imbalance.”
For investors looking to tap into this opportunity, uranium-related ETFs and physical uranium trusts, such as the Sprott Uranium Miners ETF (NYSE: URNM) and the Sprott Physical Uranium Trust (TSX: U.UN), offer a broad exposure to the market. Additionally, companies positioned for near-term production, like IsoEnergy (TSX: ISO), are attractive options for those seeking direct exposure to the uranium supply chain.
To learn more about the uranium market, key trends, and players, access The Oregon Group’s new report, "The Great Uranium Disconnect”. Or download the report here.
About The Oregon Group
The Oregon Group is an independent investment research firm focused on identifying key investment trends in the commodities and energy sectors. The firm is led by industry veteran, Anthony Milewski, whose expertise spans capital markets and natural resources.
Legal Notice
The Oregon Group’s publications are informational and should not be construed as financial or investment advice. Readers are encouraged to conduct their own research and consult with financial professionals before making any investment decisions.
For more information, please visit theoregongroup.com or email info@oregongroup.com
SOURCE The Oregon Group
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