Uranium entered the middle of the year with a stronger fundamental backdrop than its market performance would suggest, according to mid-year analysis from Sprott Asset Management.

The Canada-based precious metals and critical materials investments company said that rising long-term prices, improving policy support, growing electricity demand and constrained supply have all continued to reinforce the investment case, even as returns across uranium mining equities have disappointed.

The first half of the year was marked by a growing, and at times frustrating, gap between uranium market fundamentals and price performance, Sprott said.