Company: FMST
Filing Date: 2025-06-20
Form Type: 20-F
Source: 0001171843-25-004004
Chunk: 36

Company: Foremost Clean Energy Ltd.
Filing Date: 2025-06-20
Form: 20-F
Item: Item 4
Chunk 36
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ium Imports Act” and the “ ADVANCE Act,” both aimed at strengthening domestic uranium production and enhancing energy security.

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A 2024 Reuters article noted that Japan’s gradual restart of nuclear reactors, following the post-Fukushima shutdown, could significantly influence future uranium demand.

Pricing Trends in the Uranium Market

The uranium market is currently pivoting from being inventory-driven to production-oriented. Following a low of approximately $17.75 per pound uranium concentrate (commonly referred to as “ U3O8”) in 2016, prices rebounded significantly, reaching $107.00 per pound U3O8by February 2024. This upward trend in pricing reflects the interplay of renewed interest in nuclear energy, geopolitical events, and market expectations, illustrating the need for increased uranium supply to meet rising demand.

Fig 5. Uranium Pricing Chart Courtesy of Cameco

The International Energy Agency reported in 2023 that the anticipated growth in global electricity demand was expected to rise at 3.4% annually over the next few years due to economic recovery and decarbonization efforts - further emphasizes the role of uranium in the energy transition.

The Role of AI and Data Centers in Expanding Demand

As demand for electricity surges, data centers and artificial intelligence (AI) have become significant contributors to this growth. Projections estimate that electricity consumption from these sectors could double by 2026, with global data centers having consumed approximately 460 terawatt-hours (TWh) in 2022. This sharp increase is partly driven by the expanding digital economy and the proliferation of AI applications, which require substantial energy to operate efficiently. As electricity demand continues to rise, the interplay between uranium production and these burgeoning energy needs will become increasingly critical.

Major tech companies, such as Microsoft and Google, have announced significant investments in sustainable energy solutions, reinforcing the role of nuclear power as a reliable energy source that could help meet this burgeoning demand. These investments indicate a commitment to not only advancing technology but also ensuring that energy consumption aligns with global sustainability goals. This convergence of energy needs and technological advancement will likely bolster the demand for uranium as industries pivot towards cleaner energy sources.

The future of uranium exploration, especially for companies like Foremost operating in the Athabasca Basin, is shaped by multiple factors including the anticipated nuclear renaissance and the growing role of small modular reactors. As the world pivots towards an energy landscape dominated by low-carbon sources, the demand for uranium as a key fuel for nuclear reactors is expected to surge.