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Sprott ETF Product Management Director Steven Schoffstall Explains Why Uranium Prices Are Soaring This Year And How Investors Can Trade The Rally

Published

8 months ago

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–News Direct–

By Rachael Green, Benzinga

As nuclear energy surges back into the limelight, promising a smoother transition away from fossil fuels, long-stagnant uranium markets have been booming. The once-obscure commodity is increasingly gaining the attention of investors looking for a new way to trade the clean energy transition. To learn more about uranium and what investors new to the space need to know, Benzinga sat down with the Director of ETF Product Management at Sprott Asset Management, Steven Schoffstall.

Uranium prices have soared this year, outperforming other metals. Can you talk about why this is happening now and where you see uranium prices headed going forward?

There are a couple of things that are at play here. Year-to-date through the last couple of days or so, [physical uranium] is up about 55%. Uranium tends to be much less sensitive to shorter-term economic noise. So when we see slow-down discussions about what's going on with the Chinese economy, that tends to affect other commodities more than what we see flow over into uranium.

There is a really strong case for uranium and the future growth of the price as well as the sector going forward. If you were to look back at uranium prices about five or six years ago, they were somewhere around $20 a pound. Now, we're sitting closer to $74 or $75 per pound.

The incentive price is really important to look at when we look at uranium. That is the price at which producers can produce uranium and still turn a profit. That's currently around the $75 to $80 range. That would suggest that, at least in the short term, there is some additional room for the price of uranium to move.

When you look over the longer term, there is a severe supply-demand imbalance that we see developing. If you go out to 2040 or so, you see about a cumulative 1.5-billion-pound shortfall in the supply of uranium. So, we think over the longer term, that's going to be conducive to much higher prices in uranium.

As demand for uranium increases, what is the outlook on the supply side? What should investors be watching here?

I mentioned the longer-term supply shortfall that we're expecting. What it's really going to take to get us there is to get more mines up and running. There are a couple of things that really impact that.

One would be the permitting process. To go from finding a mine or developing a site that hasn't previously been mined, it can take 10 to 15 years or longer. That's something that we would expect to see get shortened as we see governments start to sign on to nuclear energy and uranium as the answer to the energy transition.

We have a number of mines that were set on care and maintenance because incentive prices werent quite there for them to remain operational. So we need to see some increases in the price of uranium to incentivize those companies to get those mines up and running again.

The third leg of this stool is bringing the supply of uranium to Western countries. Kazatomprom, in Kazakhstan, is the world's largest producer of uranium. Given its proximity to Russia and the route in which it gets uranium to market, it would be great to diversify that part of the supply chain.

We do see companies like Cameco, based out of Canada, with very substantial operations that are bringing a lot of uranium to market. But its not going to be smooth sailing. Cameco announced an expected uranium production shortfall relative to its guidance for the rest of this year, which has driven prices higher.

Something that we see with any commodity is the potential for supply disruptions. Whether it's logistically, from a labor standpoint or from a permitting standpoint, we would need to see improvement in those areas in order for us to be able to limit the impact on prices as we see the supply and demand gap widening for the next one to two decades.

For investors who are new to the space, what unique risks should they be aware of in the uranium market?

The biggest one is probably geopolitical. The Russia-Ukraine war is ongoing and leading to energy security considerations. The coup in Niger, which produces about 5% of the worlds uranium could also impact supply.

Thinking more from an equity risk profile, these names tend to be smaller cap names. In our uranium miners ETF (NYSE: URNM), the total market cap of the entire index is less than $40 billion. So, its a much smaller segment that starts to introduce those risks that investors might not necessarily see if they're investing in larger companies like those in the S&P 500.

What are some upcoming catalysts and market movers in the uranium market youre watching as we head into 2024?

For us, it's really about the price action that we're seeing on the physical side. That's going to be driving how much more uranium is coming on to market. What the miners are able to produce profitably and how quickly they are able to get the mines up and running, that's something that we're seeing as a tailwind for the price of uranium.

On the energy transition side, on a global scale, [uranium] is a metal that is being looked at more and more to provide the solution to the energy transition.

The International Energy Agency recently came out with a new report projecting that fossil fuel usage, particularly oil and natural gas, may peak by about 2030. We will see somewhat of a dip over the next decade or two, but they will still be heavily used. At the same time, we will see a 76% increase in electricity demand on a global basis when you're looking at 2050 relative to 2021.

Solar and wind have traditionally been the main ways of generating cleaner energy. But we are starting to see countries really warm up to the uranium story and nuclear energy.

One piece that really demonstrates that is, if you look on a global scale, there are about 435 reactors that are currently up and running, mostly in the United States. But we're starting to see a lot of interest from Asia, particularly from China, in increasing their reliance on nuclear energy.

Over the next decade or so, there are another 170 reactors that are either already under construction or planned for construction. That's about a 30% to 35% increase in nuclear reactors, which is also going to be driving the opportunity in the coming years.

The uranium market can be a bit opaque and hard to access for retail investors. How can they best gain exposure to this market?

We have three different ways to provide investors access to the uranium market. Our first option is the Sprott Physical Uranium Trust, a $4.5 billion fund that invests in and stores physical uranium. That's available [on the OTC market] in the United States under the ticker SRUUF.

We also have the Sprott Uranium Miners ETF (NYSE: URNM). That's an all-cap exposure to uranium miners that also includes about a 15% to 17% allocation to physical uranium. Most recently, we launched the Sprott Junior Uranium Miners ETF (NASDAQ: URNJ) back in February of this year. That ETF is for those who want to access the smaller-cap names in the uranium universe.

When we develop our strategies, whether it's uranium or broader energy transition funds, one thing we really focus on is pure-play companies that are upstream in the supply chain. In our view, the closer we can get to the source of bringing these critical minerals out of the ground, the better.

Its a potentially better investment opportunity because we're moving away from the downstream companies. If companies are involved in building the nuclear reactors or building components that are going to be used in nuclear reactors, there could be cost overruns and a lot of logistical issues and delays. Being upstream allows us to stay away from that because there is a certain baseline of uranium that is necessary to keep not only the reactors that we have now up and running but also to meet that future growth.

This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.

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View source version on newsdirect.com: https://newsdirect.com/news/sprott-etf-product-management-director-steven-schoffstall-explains-why-uranium-prices-are-soaring-this-year-and-how-investors-can-trade-the-rally-100077765

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Heaven Roofing Contractors Boston Enhances Services and Extends Service Areas

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8 hours ago

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July 26, 2024

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Heaven Leading roofing company expands offerings and reach across Greater Boston

Boston, Massachusetts, United States, 26th Jul 2024 – Heaven Roofing Contractors Boston is proud to announce the enhancement of its service offerings and the expansion of its service areas to better meet the needs of both residential and commercial clients throughout the Greater Boston area.

Heaven Roofing Contractors Boston Enhances Services and Extends Service Areas

Expanded Service Offerings

Heaven Roofing Contractor Boston has broadened its range of services to include a comprehensive suite of roofing solutions, ensuring top-quality workmanship and customer satisfaction. Our enhanced services include:

  • Commercial Roofing : Providing durable and reliable roofing solutions for businesses, ensuring minimal disruption to operations and maximum longevity.
  • Residential Roofing: Offering a variety of roofing materials and styles to suit any home, with a focus on quality, aesthetics, and durability.
  • Roof Repair: Prompt and efficient repair services to address any roofing issues, ensuring the integrity and safety of the structure.
  • Roof Cleaning: Professional cleaning services to maintain the appearance and functionality of roofs, removing debris, moss, and algae.
  • Metal Roofing: Installation and maintenance of metal roofing systems, known for their durability, energy efficiency, and aesthetic appeal.
  • Roof Replacement: Comprehensive roof replacement services, offering expert advice on materials and styles to fit any budget.
  • Roof Inspection: Thorough inspection services to identify potential issues early and recommend preventive measures.
  • Siding Contractor: Professional siding installation and repair services to enhance the exterior appearance and energy efficiency of homes and buildings.

Extended Service Areas

In response to growing demand, Heaven Roofer Boston has extended its service coverage to include several new areas. We are now proudly serving the following locations:

  • Cambridge, Massachusetts
  • Chelsea, Massachusetts
  • Somerville, Massachusetts
  • Everett, Massachusetts
  • Brookline, Massachusetts
  • Winthrop, Massachusetts
  • Revere, Massachusetts
  • Lynn, Massachusetts
  • Jamaica Plain, Massachusetts
  • Malden, Massachusetts
  • Medford, Massachusetts
  • Arlington, Massachusetts

Commitment to Excellence

Heaven Roofing Contractors Boston remains committed to delivering superior roofing solutions and exceptional customer service. Our team of experienced professionals is dedicated to meeting the unique needs of each client, ensuring timely project completion and the highest standards of quality.

For more information about our expanded services and new service areas, please visit our website at https://roofingcontractorsboston.org/ or contact our customer service team at (857) 675-9210

About Heaven Roofing Contractors Boston

Heaven  Boston Roofing is a leading provider of roofing services in the Greater Boston area. With a focus on quality, reliability, and customer satisfaction, we offer a wide range of roofing solutions for both residential and commercial clients. Our experienced team is dedicated to ensuring the longevity and safety of your roof through expert installation, maintenance, and repair services.

 

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Organization: Heaven Roofing Contractors

Contact Person: Heaven Roofing Contractors

Website: https://roofingcontractorsboston.org/

Email: Send Email

Contact Number: +18576759210

Address: 10 Post Office Square, Boston, MA 02109, United States

City: Boston

State: Massachusetts

Country: United States

Release Id: 26072414811

The post Heaven Roofing Contractors Boston Enhances Services and Extends Service Areas appeared first on King NewsWire. It is provided by a third-party content provider. King Newswire makes no warranties or representations in connection with it.

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PC Professional, Inc.: Empowering San Francisco Bay Area Businesses with Expert IT Solutions for Over 40 Years

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9 hours ago

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July 26, 2024

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PC Professional, Inc.: Empowering San Francisco Bay Area Businesses with Expert IT Solutions for Over 40 Years

Oakland, CA, United States, 26th Jul 2024 – Celebrating more than four decades of exceptional service, PC Professional, Inc. continues to stand as a pillar of IT support in the San Francisco Bay Area. Renowned for its comprehensive IT services, PC Professional is dedicated to enhancing the operational efficiency and security of businesses and non-profits with tailor-made technology solutions. 

Comprehensive IT Services Customized for Business Success 

With a commitment to excellence and innovation, PC Professional offers a range of IT services tailored to meet the diverse needs of its clientele: 

  • Managed IT Services: Ensuring smooth and efficient IT operations with proactive monitoring and management. 
  • Co-Managed IT: Augmenting the capabilities of existing IT teams with additional resources and expertise. 
  • Cybersecurity Solutions: Providing cutting-edge security measures to protect against cyber threats and safeguard data. 
  • Cloud Computing: Enabling flexible, scalable access to IT resources to enhance productivity and support remote work. 
  • Data Backup and Disaster Recovery: Offering robust strategies to protect critical data and ensure business continuity in emergency situations. 
  • IT Consulting Services: Aligning IT strategies with business goals to drive growth and competitive advantage. 
  •  

“Our tailored solutions are designed to propel businesses forward, ensuring they can navigate the complexities of today’s digital landscape with ease and confidence,” 

said Dan Sanguinetti, Founder of PC Professional. 

Unmatched Responsiveness and Client-Focused Service 

PC Professional sets itself apart with a remarkable commitment to client service, featuring a rapid 30-minute response time to IT concerns. This responsiveness, combined with flexible service agreements that eschew long-term contracts, allows businesses to adapt quickly to changing technological needs. 

“By providing swift and adaptable IT solutions, we enable our clients to remain agile and responsive in a fast-paced market. Our focus is on building long-term relationships where we act not just as a service provider, but as a trusted IT partner.” commented Dan Sanguinetti. 

A Legacy of Innovation and Community Engagement 

Since its inception in 1981, PC Professional has been at the forefront of IT innovation. The company prides itself on its deep roots in the Bay Area and its continuous involvement in community initiatives, helping to strengthen local businesses and non-profits through technology. 

“Our rich history in the Bay Area fuels our commitment to community and innovation. We continue to evolve our services to meet the future needs of our clients, ensuring they benefit from the latest technological advancements,” added Dan Sanguinetti. 

About PC Professional, Inc. 

PC Professional, Inc. has been a leading provider of IT solutions in the San Francisco Bay Area since 1981. The company specializes in a full spectrum of IT services designed to optimize business operations and enhance technological capacities. With a commitment to reliability and customer satisfaction, PC Professional is the preferred IT partner for numerous businesses and non-profits in the region. 

Contact:  

Media Contact

Organization: PC Professional

Contact Person: Dan Sanguinetti

Website: https://pcprofessional.com/

Email: Send Email

Contact Number: +15108745828

Address: 1615 Webster St

Address 2: Oakland, CA 94612

City: Oakland

State: CA 94612

Country: United States

Release Id: 26072414823

The post PC Professional, Inc.: Empowering San Francisco Bay Area Businesses with Expert IT Solutions for Over 40 Years appeared first on King NewsWire. It is provided by a third-party content provider. King Newswire makes no warranties or representations in connection with it.

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Press Release

Tapbit Sponsorship for Malaysia Blockchain Night 2024

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9 hours ago

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July 26, 2024

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New York, United States, 26th Jul 2024 – As we enter the halfway mark of 2024, it is evident that this year holds great significance for our industry. Bitcoin has reached a new all-time high of nearly $74,000, in times of the fourth-ever Bitcoin halving, political and financial turbulence in the world. We must focus on innovation, evolution, and support for the ongoing changes in our sector.

Sponsored by Tapbit Exchange, the Malaysia Blockchain Night 2024 drew attendees from various sectors,  including blockchain enthusiasts, investors, developers, and media members from across the globe. Participation in this conference allowed Tapbit to showcase its technological advancements and new products, garnering interest from potential users and investors. This positive exposure will assist Tapbit in sustaining its competitive edge in the dynamic market landscape.

The Conference in The Era of Innovation

Malaysia Blockchain Night 2024 will attract blockchain enthusiasts, investors, developers, and media from all over the world, and is an excellent platform to showcase their own brands and technical strength. By exhibiting at Blockchain Night 2024, Tapbit enhances its brand awareness and market influence.

Founded in 2021, Tapbit is a rapidly growing cryptocurrency exchange with a global reach, serving over 200,000 users in more than 100 countries. The platform prioritizes security and offers a comprehensive trading solution to help users make informed decisions. Tapbit collaborates with reputable partners to promote crypto adoption among individuals.

The mission on the Tapbit website states: “A Borderless Crypto Platform.”

Tapbit is user-friendly and offers spot, derivatives, bot trading, and copy trading. It has more than 200,000 registered users scattered all across the world in its large customer database. In 2024, Tapbit was ranked in the Top 30 in CoinMarketCap. Furthermore, Tapbit has an average daily spot trading volume of $750 million and is a trusted and reliable platform for new and experienced traders.

Born in a bear market, Tapbit insists on putting users first, focusing on product innovation, and advocating long-term prospects with the spirit of “Borderless” The company aims to inspire people to embrace crypto and improve the way they trade, one at a time.

Tapbit will showcase its technological innovations and new products at Malaysia Blockchain Night 2024. As an international centralized exchange catering to a vast user base of over 200,000 across over 100 countries, over the past 3 years, Tapbit has been trying to be a beacon of innovation, shaping and pioneering the future of finance. 

Tapbit’s leadership in the digital evolution is prominent, it adapted to the burgeoning applications and possibilities of blockchain technology. As the financial markets undergo a seismic shift, Tapbit is not just keeping pace but propelling the entire industry forward.

The Tapbit exchange interface is user-friendly and easy to navigate through. It has the pertinent details arranged and placed in the right places so that it does not overwhelm a new trader. Furthermore, it has the right amount of data for expert traders to browse through and get what they need in seconds. Users can easily find the top gainers and newly listed coins on Tapbit’s interface, making it easy and convenient.

Built to satisfy the end user, Tapbit has a simple design with widgets and icons placed appropriately for effortlessly navigating between functions. The white font on a dark background makes it easy for users to find the information or the category they are looking for.

The market interface on Tapbit gives the users spot trading, futures trading, earn events, and copy trading options. Furthermore, the interface has what is called Trading System 3.0, where all the trending coins, top gainers, and newly listed are displayed, which enhances the user experience.

Malaysia Blockchain Night 2024 will bring together many industry experts and cutting-edge technology discussions. Members can obtain the latest industry information and technical trends by participating in various seminars, forums, and speeches to better respond to market changes and optimize their operating strategies.

Conclusion

Tapbit is proud to announce its sponsorship of Malaysia Blockchain Night 2024, a crypto conference to celebrate our rising position in this centralized exchange ranking and further enhance our position in the industry. This event will bring together key industry figures and companies to engage in discussions, share insights, and generate ideas that will shape the future of technology and finance.

In a nutshell, joining Blockchain Night 2024 is not only a platform for cryptocurrency exchanges to promote their brands and showcase their technologies, but also an important opportunity to obtain industry information, expand partnerships, and attract investment. These will help exchanges maintain their leading position in the fierce market competition.

Malaysia Blockchain Night 2024 X Tapbit Announcement: 

Media Contact

Organization: Tapbit

Contact Person: Zed Garry

Website: https://www.tapbit.com/

Email: Send Email

City: New York

Country: United States

Release Id: 26072414805

The post Tapbit Sponsorship for Malaysia Blockchain Night 2024 appeared first on King NewsWire. It is provided by a third-party content provider. King Newswire makes no warranties or representations in connection with it.

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