Special Report on Nuclear Energy

The small modular reactor is a game changer in this space. We currently have FIVE uranium ASX Small Cap stocks with a Buy/Spec Buy rating set to benefit from this growth sector.

Nuclear energy is gaining momentum across the world. Japan is leading with its decision to have an operable nuclear fleet of up to 33 reactors within the next two-three years.

For the first time ever at a United Nations Climate Change Conference, the nuclear industry has a pavilion, at COP27 in Egypt. Sentiment on nuclear power is changing faster than winter’s approach in the northern hemisphere. Combine this with gas supply and price uncertainty and it’s not hard to see why nuclear energy is becoming more appealing as the hours tick by.

Luckily there are ASX listed uranium suppliers stepping into the breach! Under the Radar Report tells you which ones to buy.

If you are interested in learning more about the Small Cap Stocks and how to invest in this area read more here.

Nuclear Presence at COP27 Summit

In a sign of changing sentiment towards nuclear power, the 2022 COP 27 Climate Summit in Egypt is the first session ever to host a pavilion for nuclear. Up until now, nuclear was having trouble in being accepted as a safe net zero power source. But with price and supply issues impacting gas and advances in nuclear technology, this has changed.

Non-Nuclear Country Interest

The International Atomic Energy Agency has been approached by 10 to 20 countries that currently do not have nuclear power. They have been seeking advice on factors related to possibly establishing a nuclear power industry in their own countries. 

Nuclear Generation Set to Double by 2040

Meanwhile the International Energy Agency has lifted its forecast of global nuclear power generation capacity needed by 2040 in its latest World Energy Outlook. It has increased its forecast to 5,413 TWh (terawatt-hour or trillion wats for one hour), an increase of 11% from the earlier forecast of 4,844 TWh.  

Global nuclear capacity was 2,500 TWh in 2020, hence the IEA’s forecast implies a more than doubling of nuclear power generation over the current 20 year period.

The remaining generation growth forecast by the IEA is largely solar and wind.

Uranium Contractors in High Demand

The improving outlook for nuclear power and by extension uranium is creating urgency for uranium contracting. Nuclear power utilities have been ‘under contracting’ their uranium supplies since 2012 and drawing down their inventories. Sourcing secondary supplies from Russia is no longer an option. UxC, one of the nuclear Industry’s leading market research and analysis companies, recently declared the end of the inventory overhang.

Higher Uranium Prices

A significant increase in term contract activity has emerged in 2022, exceeding 100 million pounds uranium oxide (U3O8) – the highest in a decade. With a ‘catch up’ in contracting volumes required to balance the market, growing uranium demand, low inventories and a thin market, we believe the ingredients are in place for higher uranium prices in the near future.

FIVE ASX Uranium Stocks set to benefit from a higher uranium price:

We estimate that uranium price of around US$65/lb is the incentive price needed to galvanise production commitments from new or mothballed uranium developments. Every stock we list stands to benefit greatly if uranium reaches this price. ACCESS these FIVE Uranium stocks now!

Access more uranium Analysis here.

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