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 at the World Nuclear Association conference in London.
The firm attended investor meetings around the conference and in recent days.
The team there assessed that a fundemental demand for uranium from hungry utilities looking to secure long term supply in the next few months.
The firm also noted that while the 2005-2007 uranium bull was driven by speculatation primarialy from hedge funds, the current picture is driven squarely by fundemental end-users – suggesting this is a much more sustainable, healthy and broad-based rally 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,” 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 to fulfil coming demand.
“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 note below:
