This presentation focuses on the role of uranium within the clean energy and decarbonization discussion. The presenter notes that there is a growing bias towards the resources that will enable electrification and decarbonization such as uranium, nickel, copper, cobalt, etc.
He looks at the supply and demand mismatch that currently exists for uranium, noting that there is a primary mine supply deficit in that the uranium produced year or year is not enough to meet the demand of our existing nuclear fleet. And with these supply and demand dynamics, pricing is sitting well below the medium-term incentive price, helping to contribute to the growing supply deficit.
The presentation continues to note the impact of nuclear on decarbonization and points to the huge amount of regulatory support across local governments in recognition of nuclear’s role in the war against carbon.
Looking at China, with current pledges to achieve net-zero emissions by 2060, the presenter notes that renewables like wind and solar do not have the capacity to get them to this point and that the base load currently generated by coal still needs to be replaced – and the potential for nuclear to play a large role here.
Overall, the energy stability and density of uranium is well argued versus that of renewables, as well as its small mining footprint – especially as it steps up to take a leading role to generate base load power in the energy transition era.
Presented by Guy Keller, Portfolio Manager – Tribeca Nuclear Energy Opportunities Strategy at Tribeca Investment Partners