Uranium Price Update: Q1 2023 in Review

Uranium sentiment continues to improve

Russia's invasion of Ukraine has highlighted the importance of oil and gas alternatives in Europe, Greg Taylor, chief investment officer at Purpose Investments, told INN. That’s where uranium comes in.

“There's been a massive change in the perception of how people look at it,” he said.

The expert emphasized that a few years back, ESG mandates only included solar and wind energy as worthwhile sources of green power. But now that mentality is changing.

“Uranium is now starting to shift from anti-ESG to becoming included in ESG mandates, and people are looking at it as one of the cleanest sources of fuel that's available,” he said.

Despite this shift in appreciation for nuclear energy, investors looking for a quick payday are in for a rude awakening.

"I think that we need to come to the understanding that just because there is an improving fundamental story, it doesn't mean it's reflected in the price immediately," Fabi Lara, creator of the Next Big Rush, told INN.

Could SMRs build goodwill for the industry?

Speaking to INN, Theo Yameogo, mining and metals leader for EY Americas and Canada, said he has recognized a renaissance for the industry as investment in small modular reactors (SMRs) blossoms.

Huhn is also intrigued by the future of the SMR business and how it could balance with large reactor projects.

When asked about the role SMRs could play in changing the minds of nuclear energy skeptics, the Uranium Insider expert said this trend is still in its early stages and will be one for investors to monitor over the long term.

“It's overall positive; it's difficult to say how much of a role (SMRs will) play generally, because we're still seeing pretty significant growth coming from large reactors,” Huhn said.

Similarly, Taylor said there’s still a long runway ahead for SMRs and their impact on the overall market.

“It'll be interesting to see when it does and what use cases we get,” he said.

The finance expert theorized that there could be “game-changing” applications for SMRs in industries looking for clean energy options, such as mining. “I think we're still really in the early days of figuring out how that technology is going to work,” he said.

Investor takeaway

It’s easy to get excited about what’s ahead for the uranium industry, but it's also clear that experts are preaching patience and long-term strategies for investors. “This is a market for patient capital,” Huhn said.

Looking ahead, the expert pointed to a unique new fund out of Switzerland that could cause some noise in the overall uranium market by helping bigger players find positions in the uranium industry.