inews, by Jayna Rana, June 1, 2022:
With the impact of climate change becoming more prominent than ever as well as greater interest in alternative and renewable energy solutions in response to the ongoing Russo-Ukrainian conflict, all eyes are currently on investment trusts in the commodities & natural resources and renewable energy infrastructure sectors.
Commodities & natural resources trusts had a rollercoaster ride in 2021 as metals and energy prices responded to the stuttering recovery from COVID. Most made progress, barring a couple of minnows and Golden Prospect Precious Metals, which is focused on gold miners.
However, the standout leader within the sector, and the wider investment companies market, was Geiger Counter (Ticker: GCL). It was the best-performing of all investment companies in 2021, delivering a net asset value return of 81.9%, and the second-best performer in share price terms, with a return of 91.3%.
But why? The trust buys companies involved in the exploration, development and production of energy with a focus on uranium, and among the weird and wonderful things you can invest in these days, uranium is on its way to being, quite literally, a hot commodity.
Race to net-zero
We all like the sound of wind and solar power but we can’t rely on wind and sunlight to keep the world permanently plugged in. Renewables tend to be intermittent in nature but nuclear offers a stable, baseload, supply of energy whose production does not release carbon emissions. Many believe that nuclear power needs to be an increasing part of the energy mix if we are to meet our commitments to decarbonise.
Even before the recent rises in oil and gas prices, triggered when tensions with Russia over Ukraine boiled over, the supply-demand dynamics of the uranium market looked set to favour producers for some time.
GCL manager, Keith Watson, says demand for uranium is very much in a growth phase, led by Asia, and China in particular, and driven by government policies aiming towards zero-carbon power. He told us: ‘There has been somewhat of a nuclear renaissance across global policy as governments focus on cleaning up the environment.’
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