Uranium Price Update: Q2 2023 in Review

Speaking to INN in late June, Justin Huhn, founder and publisher of Uranium Insider, said he thinks there's a solid price floor for uranium at US$50 and noted that he would be surprised if it went back to that level at all.

"The market is thin enough and the demand is sufficient enough that we should see a pretty stable and rising spot price for the remainder of the year," he commented, pointing to increased contracting from utilities.

"Years of undercontracting ultimately and inevitably leads to years of overcontracting, and we're just starting that now," he said. Huhn expects utilities to contract at greater than their replacement rates for a multi-year period, and with uranium prices at a high base and with supply looking thin, the stage is set for higher levels in the relatively near future.

"Utilities right now are contracting for the later part of the decade, and it's extremely tight for the coming few years," Huhn said. "That is a backdrop for a potentially rapidly increasing price of uranium that we're literally on the precipice of witnessing."

Watch the full interview with Huhn above.

John Ciampaglia, CEO of Sprott Asset Management, also shed light on activity from utilities in a recent conversation with INN, noting that they seem to be realizing that they will need to pay higher prices to fill their needs.

"I think utilities are finally starting to figure out that the prospects for uranium look much more bullish, and the prospects for nuclear energy remain much more bullish than the situation two years ago," he said, adding, "I think the utilities understand that the producers are partners, and that they have to pay fair prices based on today's realities."

Watch the full interview with Ciampaglia above.

Investor takeaway

Uranium is at a fascinating point this year as its price growth continues and acceptance keeps increasing. With new methods of investing on the way, market participants will soon have even more ways to get access to the sector.