US uranium producers to step up and replace Russian supply?

Investment Memo: GTR 2022

General: Macro

The following article from Bloomberg highlights the impacts the Russia/Ukraine conflict is having on supply chains of commodities globally. This time the commodity in question is uranium.

Read the full article here.

Below are our key takeaways from the article:

• The Biden government is pushing lawmakers to support a $4.3 billion plan to buy enriched uranium from domestic producers to wean the US off Russian imports.
  
  
• Energy Department officials have met with key congressional staff, where they said such funding is urgently needed.
  
  
• Russia accounted for 16.5% of the uranium imported into the US in 2020 and 23% of the enriched uranium needed to power US commercial nuclear reactors.
  
  
• The Global X Uranium ETF, an exchange-traded fund focused on the industry, jumped as much as 7.4% to its highest intraday price in a month on the news.

Today’s news doesn't come as a surprise to us given the impacts the Russia/Ukraine conflict has had all across commodity markets.

With energy independence becoming a key talking point globally we think that it was always a case of when not if when it comes to trying to sure up nuclear fuel sources (uranium).

This is why we hold GTI Energy (ASX: GTR) in our portfolio as a US based domestic uranium exploration exposure.

To see all of the key reasons why we continue to hold GTR in our portfolio check out our 2022 GTR Investment Memo here.