In a note to investors this week, financial services firm Cantor Fitzgerald warned that the price of uranium could spike significantly.

The note came after analysts spent time with a variety of stakeholders at the World Nuclear Association conference in London.

The firm attended investor meetings around the conference and in recent days. 

The team assessed that a fundamental demand is coming from hungry utilities, looking to secure long-term supply deals. 

The bull case is very strong, with nuclear power capacity only increasing globally. For example, Japan is undertaking major nuclear restarts, the US is adding new capacity and China buidling massive new plants at a rapid pace. 

The firm also noted that while the 2005-2007 uranium bull was driven by speculation primarily from hedge funds, the current picture is driven squarely by fundamental end-users.

The analysts suggest a much more sustainable, healthy and broad-based rally may be ahead.

“In the event, a buyer was to show up looking for ~1MMlb, the order probably takes 3-4 weeks to fill and gaps the price up by $10/lb,” the analysts said in a note.

The firm also said that up to 5 utilities are looking to enter the market in the coming two to three months in order to fulfil the coming demand. (See the global nuclear energy demand picture).

“4-5 different utilities are expected to go out with RFPs (requests for proposals) for term contracts in the 2025 – 2030 period for ~5 MMlb U308, each.”

The current price of uranium sits at US$62/lb on Monday, September 11 2023.

The note below: