Speaking to the Investing News Network, Ben Finegold, director at Ocean Wall, shared his latest thoughts on uranium, covering supply and demand dynamics and his outlook for prices in 2024 and beyond.
In his view, the market has only reached its third inning, meaning the story is nowhere near over. While investors will need to be more selective, Finegold remains bullish on the uranium spot price and sees uranium stock opportunities too.
"You've got the supply side as fragile as it is, and you've got demand really starting to kick into gear over the next decade. And then you can throw (small modular reactors) into that story, you can throw ... all these bells and whistles on top. And you start to realize that it is a unique, quality story versus anything else," Finegold said during the interview.
Honing in on the US ban on Russian uranium imports, which was signed into law in mid-May, Finegold said it's probably one of the most significant events for the uranium market since Russia's invasion of Ukraine.
However, while it's a powerful mechanism for incentivizing US uranium mining and fuel cycle investment, he said the market is still waiting to see exactly how the ban will impact the fuel cycle. Finegold also said he believes there's a fairly strong possibility of a counter-ban from Russia, noting that Russia has little reason to keep supplying the US.
Leading up to the ban, US utilities were hesitant to sign contracts due to the uncertainty with Russia. With that now largely out of the way, Finegold expects these entities to step up to the plate. "I think that we're going to start to see a move much higher both in terms of term volume and in terms of term prices," he said. "Fuel buyers have got the clarity that they need, particularly in the west now, on the US' stance on the future procurement of Russian uranium."
He doesn't believe investors have missed the boat on uranium, but he encouraged caution in today's market.
"I think we're entering a new paradigm for the market, certainly in terms of geopolitics, in that the market is bifurcating — it feels like more and more every day," Finegold said as the interview wrapped up. "It was a bifurcated market five years ago, and it's being exacerbated week on week. We're starting to see this real divide between the east and the west in terms of production, who's selling to who, (and) in terms of power plant construction, who's willing to work where."
Watch the interview above for more of his thoughts on uranium, including supply, demand and pricing.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.