Why Countries are Treating Uranium Supply as a National Security Concern

How is the supply of uranium tied to energy security for nations around the globe?

Countries are not going to build these multi-billion dollar facilities without knowing they've got security of supply on the underlying fuel. I think China is the best case study here, where they have the most aggressive expansion plans for nuclear energy, where they're building upwards of 10 new reactors per year. Just to put that into context, the US has built two in the last 30 years.

So they are very aggressively building new plants, and they're also very aggressively buying the required fuel. We see China as a continued very large buyer and largest buyer in the world of uranium, which has really helped support the price. The price over the last few years has obviously more than doubled in response to all of these market signals that we're getting.

It's a very positive backdrop, and you use the term kind of mega trend. It's interesting that I met a portfolio manager in London who runs a mega trend fund, and she said to me this is a mega trend they've identified, and they want to understand how to invest in it. I think it's a really good kind of anecdote around how people are looking at this investment thematic.