ADVERTORIAL
Uranium and Its Miners : After a Remarkable 2023 , Is There Room to Run ?
John Ciampaglia , CFA , FCSI CEO , Sprott Asset Management
After being unloved , forgotten and punished for a decade , nuclear energy is resurging with vigor . With the realization of nations around the world that they have little chance of reaching 2050 net-zero targets without nuclear energy , public sentiment and government support have shifted strongly .
22 Countries Pledged to Triple Nuclear Energy Capacity by 2050 1
With global 2050 net-zero targets on the horizon , 174 nuclear reactors are currently under construction or planned for construction globally — a significant growth over the 437 plants in operation today . 2 Further , the commitment made by 22 countries at the December 2023 COP28 conference to triple global nuclear energy capacity by 2050 solidifies the trajectory , indicating the potential for further escalation in nuclear reactor construction .
Opportunity for Uranium
Every nuclear reactor requires uranium . In 2023 , the uranium spot price responded to greater demand , rising 89 %, from $ 48 per pound to $ 91 in 2023 . 3 Underlying this is a significant uranium supply and demand gap , and we believe uranium prices still have room to run to incentivize new production . Globally , rebuilding uranium supply chains that have long since disappeared , reshoring nuclear fuel sources , and bolstering uranium mining will be of paramount importance .
Million Pounds of U3O8
300
■ Uranium Supply — Uranium Demand
250
200
150
100
50
0
2023E 2024E
2025E 2026E
2027E 2028E
2029E 2030E
2031E 2032E
2033E 2034E
2035E 2036E
2037E 2038E
2039E 2040E
Source : UxC LLC . Data as of Q4 2023 . Included for illustrative purposes only .
Are Uranium Miners Poised for Growth ?
With the upward trajectory of the price of uranium generating renewed investor interest and government support , uranium mining companies are responding by bringing a growing number of previously producing mines back online while also exploring , developing and building new mines . This may make uranium miners and junior uranium miners an attractive investment over the long term .
Sprott Asset Management provides two uranium mining ETFs to help you take advantage of the opportunity , as well as the world ’ s largest physical uranium trust .
URNM Sprott Uranium Miners ETF
URNJ Sprott Junior Uranium Miners ETF
To learn more , visit sprottetfs . com
Visit Energy Transition
1
Source : U . S . Department of Energy , 12 / 1 / 2023 .
2
Source : World Nuclear Association as of 1 / 10 / 2024 .
3
Source : TradeTech , 12 / 23 / 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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