Guy Keller, Portfolio Manager of Tribeca Nuclear Energy Opportunities Strategy, states that the uranium spot price has established a new floor at US$80/lb, with potential for near-term prices to reach US$85-$90/lb. Keller anticipates further price increases, potentially reaching US$100-$120/lb as demand from utilities rises and supply remains limited.
Positive market fundamentals, particularly the role of nuclear energy in reducing emissions, have driven a significant price rally from lows of ~US$18/lb in 2018 to a 16-year high of US$107/lb. Despite recent pullbacks, Keller sees a strong desire for higher prices due to rising construction costs and return-on-investment considerations.
For uranium developers, the incentive price has increased significantly, now potentially reaching US$85-$130/lb. Upcoming events, such as the World Nuclear Association symposium and Kazakh production guidance, are expected to stimulate market activity and investment in uranium exploration.
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