An Opportunity That Could Go Nuclear

"Over $2 a litre! They are taking us to the cleaners and we don't even get our oil from the strait!" The rage in the man's voice was real. He and the others agreed there was some serious gouging of consumers happening and they didn't like it. I was eavesdropping on the older gentlemen's conversation, but they were yelling with rage and a sprinkle of hearing loss, so it was impossible not to. Eight of them huddled around a comically small Tim Hortons table on a dreary west coast morning.

I knew instantly what they were upset about, just like everyone else in the Tim Hortons did. The gentlemen were appalled with the increase in gas prices over the last few weeks. The current war in Iran and the shutting down of the Strait of Hormuz, saw a 20% decline in the supply of daily oil which led to the increase in crude oil prices and a rapid rise in gas prices.

I wanted to jump into the conversation and help explain why we in Western Canada were seeing a rise in gas prices, but my introverted self screamed against it. Besides, my mind was already moving on. A 20% shortage in world oil was leading to this anger and chaos mainly because it was so unexpected. I cursed myself for not buying some oil bull ETFs with a gang of day traders a few days ago, as the war rumours swirled and with the true unpredictability of the US president. It was a missed opportunity, but more of a gamble than anything, I wanted more of a sure thing.

This anger I observed at the price increase in gas had me revisiting another interesting demand and supply story I hadn't thought about in some time. It was something exciting yet boring, in demand yet about to be chronically undersupplied. It could be the greatest opportunity in a lifetime and it is happening so slowly almost everyone can see it coming. To me that's where the next great opportunity lies — Uranium, the opportunity right in front of all of us, like buying gold at under $2000 an ounce, you know it's going to rise in price, the question is when.

Uranium is the beating heart of every nuclear reactor in the world. One could say a boring commodity used to generate base load power, but as it stands the stars are slowly aligning to where uranium could see a major price rerating higher and an eventual mining boom to follow.

A Perfect Supply and Demand Storm

As of March 2026, there were 437 nuclear reactors in operation, with an additional 76 under construction. The most amazing statistic though is the over 430 more either planned or proposed reactors due to be built. If even half the reactors are built, the demand for uranium will effectively double.

If that wasn't enough, there is a global pledge from over 30 countries to triple nuclear capacity by 2050. Not to mention the potential for many micro reactors to fuel the surging power requirements of AI and big data centers, which are expected to double their energy consumption within the next few years. All these factors aligning will lead to two things: higher prices and more mining.

It gets better. The current supply of the uranium market is stuck in a fulfillment gap as supplies start to diminish and primary production dominated by two countries (Canada and Kazakhstan) cannot at current levels keep up to growing demand. Projections indicate a significant shortage in the millions of pounds, with the U3O8 deficit as a percentage of total demand reaching 60%.

Potential Geopolitical Issues Add Fuel to the Fire

A large percentage of the global supply of uranium is currently coming from areas of the world that could be considered less than friendly to western nations. This creates a significant strategic risk as collectively, the United States, United Kingdom, and the rest of Europe import roughly 90 million pounds of uranium annually, nearly 100% of their total needs, much of which originates from state sponsored and potentially volatile sources.

There is one place in the world that is friendly to western nations and holds some of the largest uranium reserves. Saskatchewan, Canada, has emerged as a premier destination for uranium investment due to its stable regulatory environment and the presence of world-class deposits.

When the Uranium Market Could Go Nuclear

The business of building a nuclear reactor is a long and slow process. It is the reason you can blink and won't miss the opportunity, the complete opposite to the closing of the Strait of Hormuz and the lightning fast rise in oil prices. When the reactors under construction do go online in the next few years the growing gap in supply will continue to expand.

Currently the uranium sector is at an inflection point as major developers transition toward active mining, but their contributions will still come up short. For investors seeking exposure to the global energy transition and the commodity super-cycle, the combination of a widening supply gap, geopolitical necessity, and the superior economics of high-grade Canadian assets presents a compelling long-term opportunity.

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Disclaimer: This newsletter is for informational purposes only and does not constitute financial advice. Investing in junior mining companies involves significant risk.