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Thursday, January 22, 2026

Uranium Investment Insight

By Century Financial in 'Investment Insights'

Uranium Investment Insight
Navigating Corrections and Bear Markets in the SPX500 Index

For the Layman

  • As of 2025, the uranium market is in 3.3% deficit, and is expected to increase to a 49%+ deficit by 2040, supporting a bullish stance on uranium prices.
  • As contracts of uranium miners closely track those of spot uranium, a long position on Cameco Corporation (CCJ), the world's largest-listed vertically integrated uranium producer, would be a direct play. As a diversified option, the Sprott Uranium Miners ETF (URNM) can be an alternative.
  • Another method to capitalise on the uranium supercycle is via the Sprott Physical Uranium Trust ETF (U.UN) . This ETF invests and holds substantially all of its assets in uranium in the form of U3O8.

Uranium is a radioactive element that must be refined prior to being manufactured into fuel pellets or rods. Note that the uranium grade 308 is required for energy generation, and all the numbers mentioned in this report are of uranium 308.

 

The Products

Ticker Name Currency Prim Exch Nm Last Px Mkt Cap 52W Low 52W High Beta
U-U SPROTT PHYS CAD Toronto 30.20 9572.68 18.00 30.37
CCJ CAMECO CORP USD New York 112.84 49131.34 35.00 114.45 1.236
URNM SPROTT URAN USD NYSE Arca 67.99 2205.26 27.60 68.95 1.004

Uranium pellets are stacked together to sealed metal tubes called fuel rods.

Inside the reactor vessel, the fuel rods are immersed in water, where the chemical reaction produces steam that drives the turbine and generates electricity.

 

Supply and Demand Dynamics

Looking at the demand and supply dynamics as of 2025, the demand for uranium was 182 million pounds (mlbs), while supply was 176 mlbs, implying a deficit of about 3%. Looking ahead, by 2040, the deficit is expected to increase to as high as 50% as the demand soars to a little under 400 mlbs.

On the supply side, it typically takes about 10-15 years from initial discovery and exploration; however, if feasible, then the mines can run for 20-40 years. Hence, this bottleneck in discovery and exploration limits the supply, even though the globally identified recoverable uranium resources amount to 17.5 Kmlbs.

Demand can be attributed primarily to 2 factors: rising electricity demand and increased pressure for clean energy.

In 2025, the Uranium market is projected (as the actual numbers are yet to be released) to be in a deficit of about 3.3%, as demand and supply stand at 182 mlbs and 176 mlbs, respectively. Looking ahead, the deficit is expected to rise to a staggering 49%+.

Amid the rapid expansion of data centres and hyperscalers, electrification, and industrial growth, electricity demand is expected to increase significantly. This leads to a natural question – Why Nuclear Energy?

The answer is that nuclear energy is denser than fossil fuels. This means a much smaller amount of fuel is required to generate the same amount of electricity, leading to operational cost advantages and less waste by volume. Capacity factor, a measure of efficiency, is the ratio of the power produced by a source over the total power it could have produced if running at full strength over a given period. Nuclear has the highest capacity factor of any power source at 90%, followed by coal and combined-cycle gas (60%), wind (35%), and solar (25%). Furthermore, nuclear energy is often favoured from a sustainable, clean energy standpoint.

How can the Uranium Supercycle be Played?

Uranium Miners

Currently, like other commodities, uranium does not trade in the open market, and buyers and sellers negotiate contracts privately. However, over the long term, the perceived spot price and the price set by miners tend to be similar; in fact, the price set by miners is often at a premium, as shown.

This means that the miners would be direct beneficiaries when the price of uranium increases. A stock to watch out for in this space is Cameco Corporation (CCJ).

CCJ is the world's largest-listed vertically integrated uranium producer and is well positioned to take advantage of a favourable outlook for the nuclear energy industry.

Uranium ETF

Another method to capitalise on the uranium supercycle is via the Sprott Physical Uranium Trust ETF (U.UN). This ETF invests and holds substantially all of its assets in uranium in the form of U3O8.

From a technical standpoint, it has broken out above the trendline resistance on the monthly timeframe, supporting a bullish stance.

Others

Though CCJ and U.UN would be direct beneficiaries of a rally in the uranium prices, it must be noted that there would be other companies that would gain from the momentum in the uranium space. Other beneficiaries include: Oklo Inc. (OKLO), NuScale Power Corporation (SMR), and Constellation Energy Corporation (CEG).

Disclaimer:Century Financial Consultancy LLC (CFC) is licensed and regulated by the Capital Market Authority (CMA) of the UAE under license numbers 20200000028 and 301044 to carry out the activities of Financial Products dealer, Trading Broker in international markets, Trading Broker of OTC derivatives and currencies in the spot market, Introduction, Financial Consultations, and Promotion. CFC is incorporated under UAE law, registered with the Dubai Economic Department (No. 768189), with its office at 601, Level 6, Building No. 4, Emaar Square, Downtown Dubai, UAE, PO Box 65777.

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