economy
The energy crisis will boost nuclear power, the IEA told CNBC. Here's how investors can benefit
The nuclear power theme can be accessed in several ways: mining and refining stocks, as well as through the spot uranium price via ETFs and holding companies.
TL;DR
- Global energy diversification is accelerating due to a major oil price shock, leading to increased interest in nuclear power.
- South Korea has committed to nuclear power, and more nations are expected to follow suit, according to the International Energy Agency.
- Investors can gain exposure to the nuclear theme through uranium production companies, such as Kazatomprom and Cameco, which are benefiting from a structural deficit in the market.
- Exchange-traded funds like the Global X Uranium UCITS ETF offer diversified exposure to uranium miners, refiners, and explorers.
- The spot price of uranium can be accessed through holding companies like Yellow Cake plc, which purchases and holds physical uranium.
- Analysts predict a rise in uranium prices, driven by demand for decarbonization and energy independence, with some forecasts seeing prices reach $135 per pound by 2027.