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#uranium industry is set to go from underfeeding to overfeeding and this will result in a significant drop in secondary supplies. The world is likely to avoid Russian enrichment services as much as possible. This is very significant. Complicated to explain but šÆ validā¦
I would also think that the spiking electricity price is likely to also help drive enrichment costs higher and incentivize overfeeding of u3o8 to produce uf6. The combination of theses two factors could easily significantly stop much of this significant āsecondary supplyā source
Bottom lineā¦ less spot #uranium available for sput or fuel buyers that are desperate for spot supplies because they have uncontracted needs. Oh..and thereās also miners that have over contracted that also MUST buy spot material to fulfill contact obligations.
I continue to believe that we are about to see a steep spike in the #uranium price. Steeper and also greater in magnitude than the last bull market (when I correctly predicted it would spike to $140/lb). Look back at the old charts of the 2007 run upā¦.
Iām thinking $200/lb test could well happen this year and as Iāve said thereās many factors that make me think we can blow through that level this cycle. Basically every single bullish point in the case for a #uranium price spike is stronger and more impacting this cycle vs last
This cycle vs last bull
- demand growth much greater
- relative primary production much lower
- inventories lower now
- Geo political risk way higher
- permitting ability way harder
- money printingā¦ off the charts higher
- interest rates so much lower
- demand growth much greater
- relative primary production much lower
- inventories lower now
- Geo political risk way higher
- permitting ability way harder
- money printingā¦ off the charts higher
- interest rates so much lower
- electricity prices off the charts in many parts of the world
- gas and coal prices parabolic
- number of nuclear facilities that can and will be quickly restarted
- global concern about energy security
- ease with physical can be bought by the public (phone trading)
- gas and coal prices parabolic
- number of nuclear facilities that can and will be quickly restarted
- global concern about energy security
- ease with physical can be bought by the public (phone trading)
- ability for funds / etfs to see inflows and buy physical #uranium off the charts more powerful
- number of market participants looking for squeeze plays like $amc $gme
- ability for people to read up and share the investment case via social media
- number of market participants looking for squeeze plays like $amc $gme
- ability for people to read up and share the investment case via social media
- desire for the world to hedge against massive certain inflation
- power demand growth due to electric vehicles
I could go onā¦ Iām sure some followers will add some points Iāve missed. But I think I got most of the main ones. Just trying to make it clearā¦
- power demand growth due to electric vehicles
I could go onā¦ Iām sure some followers will add some points Iāve missed. But I think I got most of the main ones. Just trying to make it clearā¦
Every single data point or factor that investors should consider is not just more bullish but much more bullish than last cycle..
Few more.
- major mine depletion
- supply chain difficulties to expand production
- skilled mining labour shortages
On and on we go
Few more.
- major mine depletion
- supply chain difficulties to expand production
- skilled mining labour shortages
On and on we go
Oh.. plus consider how much wealth is piled up in pure shit like crypto vs the uranium sector. Or global financial markets. Or the global bond market. So much āmoneyā vs a microscopic #uranium sector that just happens to provide ~11% global electricity
Whereās my mindā¦
Whereās my mindā¦
Almost forgot to mention the fact that ramping up nuclear power is the only way we are going to make a dent in coal fired power output and have a chance to fight both climate change and ocean acidification.
Yesā¦ Iām wildly bullish cause itās the best damn commodity story EVER!
Yesā¦ Iām wildly bullish cause itās the best damn commodity story EVER!
All time.. ever. And Iāve studied a lot of commodity history and nailed many a bull market in a great number of commodities. Best Iāve seen was the last uranium bull and most will agreeā¦
But this one is betterā¦much much better
But this one is betterā¦much much better
Not on the listā¦ 150 reactors being build by Chinaā¦ so massive. Huge stock pile needed. I expect we will see Chinas growing partnership with Russia lead to Russian and likely Kazakhstan uranium head primarily to China and not feed the west. Huge supply gap for the west
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