Bank of China International: Uranium prices have shown strong performance since the beginning of the year, maintaining an optimistic view of the industry.

Bank of China International released a research report stating that due to imminent contracts with utility companies and a long-term supply-demand gap, they maintain an optimistic view of the natural uranium industry. Recent catalysts include more proactive government policies, approval of new reactor projects in the United States and China, and further contract activities. The preferred target remains the Kazatomprom (National Atomic Company of Kazakhstan), which has attractive valuations and a high exposure to uranium prices. At the same time, given the increased possibility of restarting its U.S. assets at prices higher than the market, the bank has raised Cameco's priority to the same level as CGN MINING (01164). Bank of China International's main points are as follows: Strong performance of natural uranium since the new year The spot uranium price rose by 2 dollars to $83.5 per pound, and the main natural uranium ETF has risen by 22% since the beginning of the year. White House statement On January 14th local time, the White House issued a statement addressing the issue of U.S. dependence on imports of key raw materials. Natural uranium was specifically mentioned in the announcement as a key raw material in the energy sector. President Trump has decided to initiate negotiations with trade partners to address the issue of dependence on imported key raw materials for processing, and consider implementing a "minimum import price/floor price" policy if negotiations fail to meet government goals. Historically, setting price floors to support the U.S. domestic supply chain and reduce import reliance is not uncommon. The most recent example was in July 2025 when the U.S. Department of Defense signed a 10-year minimum purchase price agreement for neodymium-praseodymium products with domestic rare earth producer MP Materials. If a similar policy is implemented for uranium, it could encourage investments in restarting suspended production mines and exploring new mines in the U.S. This would benefit uranium production companies with U.S. assets, including Cameco. On the other hand, if the price floor applies to all imports (or from specific countries), it could benefit a wider range of uranium producers and create a differentiated market before boosting domestic supply in the U.S. Since the second quarter of 2016, Cameco has suspended production at its U.S. mines (Crow Butte and Smith Ranch-Highland). Cameco owns 100% of these assets, and the estimated annual maintenance costs (cash and non-cash) in 2025 are expected to be $14-15 million. Historically, these two projects have produced approximately 35 million pounds of uranium through in-situ leach mining. The bank believes that a government price floor mechanism could prompt the restart of these assets, which is a positive sign for Cameco's natural uranium asset portfolio. Strong performance since the beginning of the year The spot uranium price continued to rise in December 2025, with a monthly increase of nearly 2 dollars/pound, reaching $83.50/pound. The Sprott Physical Uranium Trust (SPUT) was able to issue new units on every trading day since the beginning of the year, totaling $103 million raised and the purchase of 650,000 pounds of uranium. In comparison, SPUT raised a total of $772 million in 2025 and purchased 8.6 million pounds of uranium. The trust has traded at a price higher than its net asset value for four consecutive days, compared to only 12 days out of 251 trading days in 2025. The bank believes that this strong performance indicates improved investor sentiment towards the natural uranium sector and may continue in the coming months.