Uranium market supply and demand update – Here’s what to watch in the Uranium sector

January 28, 2021

Justin Huhn, Founder of the Uranium Insider joins me for a broad Uranium market update. I have him update us on the supply and demand aspects of the markets and outline the key news events to watch for the sector over the next couple weeks. Uranium stocks have faded over the past couple weeks so we are looking ahead to what could be the next catalyst.

Click here to visit the Uranium Insider website to follow along with Justin’s Uranium comments.

    Jan 28, 2021 28:59 AM

    Once Wall Street became the dominant force in financial affairs after 1913 with the establishment of The Federal Reserve, the noblest aspirations of The Central Bankers was to destroy the middle class. America today has finally triumphed over the three class system, the poorhouse and poverty are now very much a fabric of society as are the rich. Now the bankers will turn their gaze to the reddit traders and change the rules so they no longer will be a trading force. Wall Street has always been very cunning in dealing with upstarts and winners like Jesse Livermore. DT

    Jan 28, 2021 28:40 AM

    I beg to disagree. Bankers are not that stupid. They don’t want to destroy the middle clas. They want to maximize their take for minimum effort and don’t give a damn who suffers.
    It is to their advantage to have a growing economy.
    And to some extent a growing economy lifts all boats, as long as taxation does not diminish the take so much that it destroys all incentive.

      Jan 28, 2021 28:47 AM

      CFS, The Bankers want people as debt slaves, they don’t worry about maximizing their take, they are in charge of the money supply. Do you remember Scrooge and Marley, “Are there no poorhouses.” LOL! DT

        Jan 28, 2021 28:23 PM

        You sir, are correct. Adding digits to one’s account is only part of one’s wealth accumulation. Subtracting digits from everyone else’s account is another important part and an overlooked one. For example, if everyone had a billion dollars, no one would be rich. So, having the widest possible wealth gap over as many people as possible yields the most real wealth and therefore power. Of course, the purpose of obtaining wealth is ALWAYS power. Wealth IS power and indebted ignorant serfs are far easier to control than the “bourgeoisie”/middle class (that Marxism and the left in general, destroy).

          Jan 28, 2021 28:41 PM

          Well written Matthew!

            Jan 28, 2021 28:48 PM

            Good points.
            Ignorant Serf

    Jan 28, 2021 28:44 AM

    I agree that we need to get into the forties to get new production and even increased exploration.
    It is not cklear to me there is excess supply for very long, given the rate of new construction of power plants in China and even the third world.

      Jan 28, 2021 28:06 AM

      The minimum pricing the Uranium sector needs to encourage more ISR supply is in the mid $40s, but really for the hard rock projects they need more like $50-$60 prices to incentivize new mine production.

      The real market signal that everyone is waiting on is when the utility companies come to the table and start doing longer-term offtake contracts, and those will likely be in the $50s and that is what will suddenly ramp up the price. It is a very opaque market, and those contracts don’t need to be publicly stated, but the first few times they are disclosed, it will light a fire under the Uranium pricing.

      In addition to all the new plants under construction in Asia, the Middle East, and Eastern Europe, and the continued need for the legacy nuclear fleets in the US, Russia, and western Europe, there is also the huge potential demand that the Small Modular Reactors will bring. These SMRs are not prone to meltdowns, there can be single use applications, or many strung together in a network, and they will be part of the energy solutions in the Nuclear sector.

      Many of the Uranium stocks have surged over the last few months, and this is just a taste of what is to come when things really get going in this sector, but we are now a fair distance from the double bottom in Uranium prices in the $17-$18 level back in late 2016 and again in late 2017. That was the time to really be accumulating at much lower prices, as we discussed back then, but there is still PLENTY of room to run in this cycle, and even though we are 3-4 years into the turn, it is still “early days” relatively speaking.

      The trend has been gradually up for the last few years, in fits and starts, and the investor interest is finally growing once again. The moves we saw coming out November of last year through present have shown the rising tide has lifted all boats, and even some turkeys are starting to fly, with zombie companies with no meaningful news for years starting to go up double and triple digits, or projects many years from production screaming higher.

        Jan 28, 2021 28:27 AM

        BTW – Really good comments from Justin Huhn today. I wasn’t familiar with his work until he came on the show last time, and since then I’ve been following him on Twitter and appreciate his coverage in the Uranium sector, along with guys like Quakes and SilverChartist (that despite his name also covers the Uranium mining sector). Also Patrick Karim has been nailing it on his Uranium stock charting recently.

          Jan 28, 2021 28:50 AM

          SilverChartist – Pro Insider Mid Week #Video Update.

          Jan 27th, 2021 #TechnicalAnalysis #Silver Stocks #Uranium Stocks

            Jan 28, 2021 28:10 PM

            Silver is up $1.12 or 4.41%, NNNNNICE! DT

            Jan 28, 2021 28:07 PM

            DT – Very nice indeed. 🙂

            Jan 28, 2021 28:08 PM

            Is Reddit Group WallStreetBets Planning to Short Squeeze Silver [$SLV] Next?

            Prashant Jha & Sunil Sharma – Jan 28, 2021


            Jan 28, 2021 28:10 PM

            IrishTony posted this over on the other blog, but it is relevant here as well.

            GoldFix: Wall Street Bets Silver Thesis in Full

            by Vince Lanci

            Silver Squeeze?

            “Even before the SLV open Silver, Gold, Oil and the PGMs all rocketed. This tells us that either shorts are spooked or the big players like JPM are positioning themselves to profit from the next wave of buying. For Silver watch the spreads. If they go into backwardation that is a sign that either someone on the bullion side is short OR a producer is overhedged. Bullion banks are very familiar with this adn will not be holding the bag if there is a squeeze.”


            Jan 28, 2021 28:23 PM

            Well it sure was an epic day in the Silver stocks with all of these new investors flooding into buy the larger names in the space that had outsized sort positions on them.

            Symbol – Silver Producers – Daily Change %

            SBR.TO Silver Bear Resources Plc +27.27%
            AG First Majestic Silver Corp. +20.23%
            HL Hecla Mining Company +17.08%
            GATO Gatos Silver, Inc. +17.03%
            EXK Endeavour Silver Corp. +16.95%
            CDE Coeur Mining, Inc. +16.02%
            FSM Fortuna Silver Mines Inc. +13.73%
            SCZ.V Santacruz Silver Mining Ltd. +13.16%
            PAAS Pan American Silver Corp. +11.24%
            ASM Avino Silver & Gold Mines Ltd. +10.00%
            USAS Americas Gold and Silver Corporation +9.50%
            SVM Silvercorp Metals Inc. +8.33%
            HOC.L Hochschild Mining plc +8.45%
            GPL Great Panther Mining Limited +7.43%
            IPT.V IMPACT Silver Corp. +6.82%
            SSRM SSR Mining Inc. +6.41%
            FRES.L Fresnillo Plc +6.36%
            AYA.TO Aya Gold & Silver Inc. +4.6273%
            EXN.TO Excellon Resources Inc. +3.28%
            GGD.TO GoGold Resources Inc. +2.89%

            Jan 28, 2021 28:25 PM

            First Majestic Silver Corp. versus Short Sellers with CEO Keith Neumeyer

            MiningStockEducation – Jan 28, 2021

            “There is a movement currently gaining steam on social media to burn the silver short sellers. So, hear what First Majestic Silver Corp.’s CEO Keith Neumeyer has to say about the largest short seller position currently occurring in his company’s stock (12:09​ mark). Will silver and First Majestic short sellers be delivered a painful lesson?”


            Jan 29, 2021 29:18 AM

            Reddit Users still salivating over further short squeeze opportunity in (AG) First Majestic.

            I hope the retail hordes push our silver stocks even higher today to close the week with a bang.


            Jan 29, 2021 29:21 AM

            Here are the kinds of things the Reddit crowd is discussing regard (AG) First Majestic:

            Etruscanboomer – 1 hour ago

            “No brainer, this will continue. It’s not a tsunami of buyers any more, it’s a flood that will just keep on coming. I reckon the shorts are already sat on a $600m loss, lets round it up to $1B-$2B+”

            Borgilskye – 3 hours ago

            “First Majestic still has a 23% short float only about 3% of shorts closed so far. A long way to run.”

    Jan 28, 2021 28:51 AM

    Matt, in case you missed my reply here it is again:
    Thanks Matt! You’re really great!
    A serious question: have you ever thought about a starting a paid membership website sharing your fantastic insights? I for one would sign up and I’m sure there are lots of ppl like me that would too. Your charts, analysis and thinking beats the most of the others out there.
    Please do consider it.
    Reply to this comment

      Jan 28, 2021 28:25 PM

      You’re welcome, Michael. I have not considered that but thank you for the vote of confidence.