Uranium Sector Update – Geopolitics Driving Uranium Equities, Other Commodities

Escalating conflict in the Ukraine and Russia’s vocal nuclear posturing has pushed gold and silver prices higher. Oil prices are higher on geopolitical tensions including from the Middle East. Base metal prices are higher on reports that China may provide additional stimulus – advisors are recommending that Beijing should maintain an economic growth target of ~5% for next year and push for stronger stimulus to mitigate the impact of expected US tariff hikes on Chinese exports. Uranium prices were briefly higher last week on geopolitical news and the aftermath of Trumps election victory, but quickly lost those gains. The recent news about Russia’s plans to halt exports of enriched uranium to the USA (read more) led to a temporary spike in uranium prices, but ongoing support for uranium equity prices. While uranium is relatively abundant, there are just a few providers of enriched uranium needed for nuclear power. This situation, while stressful on the nuclear industry, is positive for the uranium industry. Particularly on the back of added demand from AI and big tech who all seem to be searching for their own power sources.