ADVERTORIAL
Can Uranium and the Energy Transition Add Power to a Portfolio ?
Steven Schoffstall
Director , ETF Product Management , Sprott Asset Management USA , Inc .
Representatives of 97 countries worldwide have pledged to achieve net-zero gas emissions by 2050 and are actively pursuing clean ways to generate , transmit and store energy . However , as the world seeks to transition to new energy sources to meet current energy requirements , the overall demand for electricity is also growing , with an 86 % increase projected by 2050 . 1
The Energy Transition Has Reignited Interest in Nuclear Power
Nuclear energy is once again coming into focus as a reliable , efficient , clean and safe energy source that — unlike solar and wind energy — isn ’ t affected by the unpredictability of the weather .
Globally , 170 nuclear reactors are currently under construction or planned for construction — a significant growth in the 434 plants in operation today . 2
The Uranium Supply and Demand Gap
Every nuclear reactor requires uranium . Vast Cold War stockpiles have been depleted , and years of disinterest in nuclear energy caused many uranium mines to close . Currently , the supply of new uranium is insufficient to meet demand . Even if existing and committed uranium mines run at historic production capabilities , they ’ re still not forecast to meet reactor demand through 2040 . 3
Million Pounds of U3O8
300 250 200 150 100 50 0
■ Uranium Supply
— Uranium Demand
2022E 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E 2031E 2032E 2033E 2034E 2035E 2036E 2037E 2038E 2039E 2040E
Source : UxC LLC . Data as of Q3 2023 . Included for illustrative purposes only .
Are Uranium Miners Poised for Growth ?
Demand for uranium is in the early stages of a structural growth cycle . With a forecasted 17-year production deficit on the horizon , increased investment in the uranium mining industry may be required to meet global demand 3 — including in new exploration and development stage mines . As a result , uranium and its miners may be an attractive investment in the energy transition .
Sprott Asset Management provides two ETFs to help you take advantage of the opportunity .
URNM Sprott Uranium Miners ETF
URNJ Sprott Junior Uranium Miners ETF
To learn more , visit sprottetfs . com .
Visit Energy Transition
1
Source : IEA World Energy Outlook 2023 Stated Policies .
2
Source : World Nuclear Association as of 10 / 10 / 2023 .
3
Source : UxC LLC . Data as of Q3 2023 .
Before investing in the Sprott Uranium Miners ETF ( URNM ) or Sprott Junior Uranium Miners ETF ( URNJ ) you should consider each Fund ’ s investment objectives , risks , charges and expenses . Each Fund ’ s prospectus contains this and other information about the Fund and should be read carefully before investing .
A prospectus can be obtained by calling 888.622.1813 or by visiting these links : https :// sprottetfs . com / urnm / prospectus and https :// sprottetfs . com / urnj / prospectus .
The Funds are not suitable for all investors . Investors in the Funds should be willing to accept a high degree of volatility in the price of the Funds ’ shares and the possibility of significant losses . An investment in the Funds involves a substantial degree of risk . The Funds are non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund . As a result , changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a diversified fund .
Brokerage commissions will reduce returns . “ Authorized participants ” may invest directly with the Fund , typically in blocks of 10,000 shares . These costs , which are not reflected in annual fund operating expenses , affect the Fund ’ s performance .
ALPS Distributors , Inc . is the Distributor for the Sprott Funds Trust and is a registered broker-dealer and FINRA Member .
Sprott Asset Management USA , Inc . is the Investment Adviser to the Sprott ETF Funds . Sprott Asset Management LP is the Sponsor of the Sprott ETF Funds . ALPS Distributors , Inc . is not affiliated with Sprott Asset Management LP .
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