Global uranium exploration budgets up in 2021 for the first time since 2011 – report

Welcome to Kitco News’ 2022 outlook series. The new year will be filled with uncertainty as the Federal Reserve looks to pivot and tighten its monetary policies. At the same time, the inflation threat continues to grow, which means real rates will remain in low to negative territory. Stay tuned to Kitco News to learn from the experts on how to navigate turbulent financial markets in 2022.


(Kitco News) – According to a recent report by S&P Global Market Intelligence, global uranium exploration budgets in 2021 increased for the first time since 2011 as companies seek to benefit from a stronger uranium market.

The consultancy said that, as per S&P Global Capital IQ data, uranium exploration budgets were up by 10.7% year over year in 2021, with Canada leading the pack and budgeting $67 million, followed by the U.S. at $10.1 million.

Globally, uranium exploration budgets for juniors reached about $94.3 million in 2021, while majors’ exploration budgets for uranium totaled approximately $22.7 million, an S&P Global Market Intelligence analysis found.

“The global exploration budget remains far from peaks seen in the late 2000s, but even modest increases represent new hope for the moribund industry,” the consultancy noted.

S&P added that rising demand from nuclear industry – along with uranium buying activities by Sprott Physical Uranium Trust and other companies – helped uranium prices sail over $46/lb in 2021, a high not seen since 2012 as prices began to fall. Companies hope to take advantage of those rising prices.



However, uranium prices need to clear $50/lb before anyone will engage in significant production at new sites, S&P noted, but with forecasters predicting increases well above that benchmark, junior companies, especially, have gone out uranium hunting.

Importantly, the consultancy said that recent unrest in Kazakhstan is driving interest in diversifying sources of uranium, especially in places with stable governments and infrastructure. That benefits explorers in Canada and the U.S., helping them attract investment dollars.



Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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