RE:U3O3 jumps U$8 "The supply and demand outlook for uranium looked fantastic before Sprott came into the market, said Warren Irwin, found of Rosseau Asset Management. "The trust has come in and moved the inevitable rally forward a year or two."
Irwin is a long-term uranium bull has the market faces growing demand and a lack of supply due to a decade of dismal prices. He noted that it is difficult for new mine supply to come online with prices trading so low.
At the market's peak in 2008, uranium spot prices were trading at $136 a pound. Some analysts are looking for uranium to push as high as $60 a pound by the end of the year.
Irwin said that while it's good to see new momentum in uranium, he isn't paying much attention to what retail investors are saying on social media. He explained that the market's fundamentals support a long-term bull market.
He added that uranium demand will continue to grow as the global shift to green energy evolves.
"We don't have a green energy future without uranium," he said. "I think some investors are starting to realize that fact."
Sprott Inc. also expects the green energy transition to be a game-changer for the uranium market.