Sprott offers investors access to physical uranium and the stocks of senior and junior uranium mining companies. We offer investors the world's largest physical uranium fund in the marketplace, as well as the largest exposure to uranium mining stocks.
Why Sprott Uranium ETFs?
Sprott is a global leader in precious metals and critical materials investments. We manage more than $8 billion in physical uranium and uranium equities (as of 2/29/2024). Sprott has a decades-long foundation in physical metals and minerals, with deep relationships and expertise in the mining industry.
Spott's ETFs indicated in June 2024 that the uranium market is experiencing increased demand, driven by its integral role in clean energy generation through its use in nuclear power.
- Demand is Increasing,
- Supply Can't Keep Up, and
- Production Disruptions are Likely.
1. Demand is Increasing
With 437 nuclear reactors operational globally and 174 more planned or under construction, the world is clamoring for more refined uranium. The United States, China, and France represent around 58% of global uranium demand. Although uranium is relatively abundant, a supply shortage is looming. At COP28, 22 countries pledge to triple global nuclear capacity by 2050.
NOTE: Uranium requirements cover operable, under construction, planned, and proposed reactors. SOURCE: World Nuclear Association, August 2023.
2. Supply Can't Keep Up
The existing uranium supply gap is expected to deepen through to 2040. Uranium is projected to face a persistent supply-demand imbalance, with a cumulative gap of around 1 billion pounds by 2040. Restarting inactive mines is vital to increase short-term supply, as new mines can take 10-15 years to become operational.
SOURCE: UxC, Q3 2023.
SOURCE: International Atomic Energy Agency, June 2018.
3. Production Disruptions are Likely
In 2022, Kazakhstan, Canada, Namibia and Australia produced over 70% of the world's uranium.Uranium Production by Country. Recent geopolitical developments could disrupt the global uranium supply chain include:
- Potential sanctions on Russian uranium and uranium services,
- Potential supply disruptions in Kazakhstan caused by transportation routes passing through Russia, and
- A halt in exports from Niger due to government coup.
*Estimated
SOURCE: World Nuclear Association, August 2023.
SOURCE: Reuters, October 2022. Trading Economics, October 2023. Bloomberg, September 2023.
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