April 11, 2025
Trade wars are tricky to profit from, but investors shouldn’t give up.
They should look beyond the headlines and understand what else is going on in the world.
Yes, the markets have been crazy recently. We’re sure you’ve noticed.
But there is one market that has plenty of long-term upside potential… and it’s completely overlooked.
Here at Canadian Mining Report, we aim to keep you aware of the trends that most investors miss.
Here’s one…
The Organization for Economic Cooperation and Development Nuclear Energy Agency (NEA) and the International Atomic Energy Agency (IAEA) have issued a warning.
Every two years, they prepare a “State of the Union” report on the global nuclear industry, known as the “Red Book.”
The last update sounded an alarm.
Global demand for nuclear energy is soaring, while investment in uranium mining isn’t sufficient to cover the world’s needs.
Currently known resources will get depleted in the coming decades if the demand for nuclear power continues at the current pace.
For example, the US, UK, and South Korea promised to increase their nuclear capacity by three times by 2050.
Even private companies, such as Alphabet (Google’s parent), Amazon, and Meta joined the pledge. They, too, plan to triple their nuclear energy use by 2050.
For example, Amazon has been adding nuclear power generation to its data centers. It is investing over $52 billion in the US as part of this nuclear energy push.
While the demand for nuclear power is soaring, there are problems on the supply side.
For example, Kazakhstan is the world’s largest producer of uranium. And it has recently started to reorient itself away from the EU and the US and toward Russia and China.
Back in 2021, only one-third of the state-owned Kazatomprom’s output went to Russia, China, and the home market. In 2023, that share soared to two-thirds.
And keep in mind that Kazakhstan produces more uranium than Canada, Namibia, Australia, and Uzbekistan.
The country’s pivot towards its neighborhood is bad news for nuclear power users in the West.
And the recent trade war launched by the US (and reciprocated by China, among others) doesn’t really help.
The world is de-globalizing. The East and the West might never get back to a point where international trade is smooth and global supply chains operate like clockwork, pre-pandemic style.
And yet, about one-third of the enriched uranium imported into the US in 2023 came from Russia. This will change in the coming years as import restrictions hit.
Where will the US utilities get their uranium, if not from Kazakhstan and Russia, some of the world’s largest producers and processors of uranium ore?
The outlook for the uranium market is bleak if you’re a utility looking to secure a future supply of enriched uranium.
But the outlook is bright for US- and Canada-based uranium companies.
In our opinion, they could stand to benefit from this de-globalization and the “global nuclear trade war.”
First, the round of tariffs announced on April 7 excluded certain minerals, including uranium.
This means that Canadian mining companies focused on uranium are at an advantage.
In this space, there are quite a few established players, such as Canada’s Cameco. The company operates the world’s largest high-grade uranium mine, McArthur River/Key Lake, in northern Saskatchewan.
The Red Book report says that uranium exploration expenditures have recovered since late 2020. This year, they could top USD 840 million.
We will not be surprised to see them exceed USD 1 billion annually in the years to come.
These investments in future uranium production will make sure that the global switch to clean energy, including nuclear, is smooth.
In the meantime, we recommend investors take a look at early-stage exploration- and development-stage companies in the uranium space.
Specifically, companies listed in Canada and the US with projects that are located in mining-friendly jurisdictions and have access to the necessary infrastructure, as well as potential shipping routes both to the East and to the West.
The current market volatility provides investors with a chance to secure positions in the companies that will do well in the long term. Don’t let these jitters prevent you from looking for opportunities in massive long-term trends, such as the coming uranium supply crunch.
Sign up to receive our future articles and updates.
Disclaimer: This report is for informational use only and should not be used an alternative to the financial and legal advice of a qualified professional in business planning and investment. We do not represent that forecasts in this report will lead to a specific outcome.