Uranium (Nuclear Energy)

[winston]

These Shares Are Breaking Out to New Highs Today (but I don’t think you’ve missed the rally)

by Sean Michael Cummings

We expect it to keep climbing, for two reasons…
First, consumers are once again embracing the potential of nuclear energy.
Second, we’ve had a massive undersupply of uranium since Fukushima.

From 2016 to 2020, global uranium production dropped by a quarter.

Demand for uranium in nuclear reactors is expected to climb 28% by 2030… and to nearly double by 2040. Yet supply is still scarce after a decade of low production.

Sprott Physical Uranium Trust Fund (SRUUF)

Source: Daily Wealth

https://dailytradealert.com/2023/09/26/ ... the-rally/

[winston]

Uranium prices have soared in recent days

Uranium prices have soared in recent days to $74 per pound, a 50% increase in 2023 to date, as lower production guidance from Cameco and production disruptions in Niger added to worries about the world producing enough U308 to meet the industry’s growing needs.

Global nuclear capacity currently consists of 440 nuclear reactors in 33 jurisdictions, however by 2030 there will be some 60 reactors more due to a vast build-up in Asian nuclear plants, lifting demand for mined uranium.

As mines take years to produce at scale and breakeven costs for new mining projects in the West rose to $90 per pound, analysts expect the uranium market to see a supply shortage of some 60-70 million pounds.

Several hedge funds – Terra Capital, Segra Capital, or Argonaut – have been ramping up their exposure to uranium stocks recently, buoyed by Cameco gaining more than 70% this year to date.

Source: Oilprice.com

[behappyalways]

Hedge Funds Load Up On Uranium Stocks, Betting On "Dramatic Upside"
https://www.zerohedge.com/markets/hedge ... tic-upside

[winston]

not vested

This Trade is a Coiled Spring Ready To Move

by Michael Salvatore

Ken Griffin, CEO Citadel:
1. The West is not investing anywhere near enough into nuclear energy to hit 2050 climate goals.
2. China is investing a whole lot more than the West is and any trade disputes between them that involve green energy transition, it has the potential to make problem No. 1 a lot worse.

The gap between global uranium production and consumption is over 50 million pounds.

URA’s price-to-earnings (P/E) ratio, at writing, is just 20.

Source: TradeSmith


https://tradesoftheday.com/2023/11/14/t ... y-to-move/

[behappyalways]

Yellow Cake Hits 15-Year High As ESG Nuclear Craze Tightens Market
https://www.zerohedge.com/commodities/y ... ens-market

[winston]

Uranium is Hot. Now’s the Time to Get In

by Tony Daltorio

Output from nuclear power plants fell by 4% in 2022, largely due to an unusual number of outages in France. Overall output has remained close to the same level it has been since the early 2000s.

A coup in the African country of Niger this summer has hampered uranium mining and processing operations in the seventh-largest producing country. Niger accounts for about 4% of mined supply.

The annual uranium market deficit will grow from 27 million to 45 million pounds by the end of the decade.

Source: Investors Alley

https://tradesoftheday.com/2023/12/06/u ... to-get-in/

[winston]

The spot market is actually low quality

Relatively little uranium is actually sold at spot prices.

"Fundamental demand" and more realistic prices are more likely to be found on the term market where buyers bid for long-term supply of their uranium needs for periods "two years out and beyond."

Therefore, is that investors may not be able to rely on the skyrocketing spot price of uranium as an indication of long-term trends in uranium pricing or of long-term growth in a company's profits.

Source: TMF

[behappyalways]

Canada Dominates Global Uranium Production
https://www.zerohedge.com/energy/canada ... production

[winston]

22 countries want to triple nuclear power. Is there enough uranium to go around?

Ines Ferré

the world's largest uranium miner, Kazatomprom (KAP.IL), warned it will likely not meet its production targets in the next two years because of mine construction delays and a lack of sulfuric acid needed for uranium production.

New uranium mines can take five to 15 years from start to finish, including permits.

We’ve got 60 reactors being built around the world. A hundred more being permitted.

Source: Yahoo Finance

https://finance.yahoo.com/news/22-count ... 10715.html

[winston]

Goldman, hedge funds step up activity in physical uranium as prices spike

by Eric Onstad and Nell Mackenzie

Utilities seek new supplies amid shortfalls that have lifted prices to 16-year highs.

Kazatomprom and Cameco cut production guidance because reopened mines that had been mothballed struggled to ramp up production to meet renewed demand.

G7envisioned tripling nuclear energy capacity from 2020 to 2050.

Investor buying of physical uranium by publicly-traded funds and hedge funds, represented nearly 15 million pounds of uranium oxide concentrate (U3O8), or about 26% of the total traded on the spot market in 2023.

This was down from 22 million pounds of investor buying in 2022 as higher prices in 2023 meant each dollar bought fewer pounds of uranium.

Source: Reuters

https://finance.yahoo.com/news/goldman- ... 54455.html