Plenisfer Investments | The long-term bull cycle for uranium and the role of utilities in the 2023 rally

In Short

Comment from Marco Mencini, Head of Research of Plenisfer Investments SG

Marco Mencini

Head of Research of Plenisfer Investments SGR


In a comment published last February we estimated that the price of uranium could reach $60 per pound by the end of the year. This threshold was already exceeded in the first days of September, due to a growth in spot prices of around 30% since the beginning of the year. This trend places uranium as one of the best performing raw materials of 2023 (Source: Bloomberg). 

While the 2006-2007 uranium rally - which took the price as high as $137 a pound - was driven primarily by hedge funds, the current bull phase is primarily driven by forward purchases of utilities and select producers. it is therefore healthier, sustainable and far-reaching. 

In particular, utilities have reappeared on the market after two years of substantial absence. In the first half of the current year, utilities signed long-term uranium purchase contracts for 107 million pounds, a value at a 10-year high and compared with 125 million for the whole of 2022 (Source: 2022 Term Contracting Review).  

Download the full commentary below:

Marco Mencini Uranium EN

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