Deep Yellow managing director John Borshoff says there is a mismatch between uranium demand and supply.
Borshoff notes in his presentation at the ongoing Canaccord Genuity Global Metals & Mining Conference that the supply sector has declined for over a decade.
He also says the sector is unprepared and highly under–capitalised.
According to Borshoff, the talent drain across the uranium sector will create difficulties in the future.
He added that Kazatomprom appears to be in trouble, while Cameco is unwilling to start greenfield projects at current prices.
Borshoff pointed out that mothballed operations starting up are only replacing diminishing underfeed material.
He further noted that future supply growth is dependent on greenfield projects.
Most worrisome, Borshoff said, is the scarcity of shovel-ready projects.
Borshoff says the mismatch occurs because China maintains strong growth projections while the EU offers overwhelming support.
He also said India is expected to be the largest global economy by 2027, with nuclear energy integral to the growth.
There is a major turnaround in Southeast Asia and an awakening in North America, he said, adding that the Middle East is pursuing nuclear power with intent.
Borshoff further said data centres/AI are growing astonishingly, and they need immediate additional power, with a preference for nuclear power required.
“The big picture that utilities simply do not get yet is that uranium price must increase dramatically to achieve eventual rebalance,” Borshoff said.
He pointed out that only three juniors outside the US achieved production from conventional mines in the 75-year history of nuclear power to the present day.
Deep Yellow has delayed its final investment decision for the Tumas project in Namibia until the term uranium price improves sufficiently to incentivise greenfield project development.
