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Uranium Sector Updates – Stocks and the Spot Price have corrected so is another run higher coming?

Cory댊
October 11, 2021

Justin Huhn, Founder and publisher of the Uranium Insider Pro joins us to share his insights on the uranium sector after the massive run higher in the stocks has corrected. The initial focus is on the Sprott Uranium Physical Trust and its ability to continue to push the Uranium price higher. We also discuss the large producers ability to ramp up production if the uranium price moves slightly higher. The key questions looking forward remains… What are the follow up catalysts that can drive prices higher for the metal and the stocks.

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Discussion
31 Comments
    Oct 11, 2021 11:36 PM

    This is a test, only a test! Do adjust your horizontal control. Do not adjust your vertical control.

    Reply
    Oct 11, 2021 11:02 PM

    Re: nuclear power I agree with Doomberg!
    https://doomberg.substack.com/p/americas-energy-strategy-is-bonkers

    The take home statement re: nuclear power is:
    “Under President Doomberg, the US would revitalize its nuclear power industry. If you claim to be serious about reducing our carbon intensity but you are opposed to nuclear power, you aren’t actually serious about reducing our carbon intensity – you are a scientifically ignorant poseur. That might sound a little harsh, and might even cost me a few subscribers, but it must be said. I’d be intellectually dishonest if I softened the message. Nuclear power is safe, affordable, and must be a critical part of our energy future. In the past 25 years, the US has commissioned precisely one new nuclear power facility, a true failure of political leadership. Opposition to nuclear power is destroying the planet. Get over it. It’s time. Better is better.”

    Reply
      Oct 11, 2021 11:15 PM

      Mike thanks for sharing that. Great quote and points made by Doomberg.

      Yes, the nut jobs that have been calling for carbon-free energy, often pushing failed Solar and Wind companies, while simultaneously bashing and trying to stop Nuclear energy are missing the forest for the trees. Nuclear is the only 24/7 zero-carbon baseload power source, and should be a crucial part of the energy mix and their solution. At least some of the radicalized greenies and lobbyists foisting clean energy mandates on the world are starting to wake up to this realization, after a few decades of demonizing the best source of carbon free power generation in the mix.

      I personally don’t see the world phasing out fossil fuels any time soon though and Oil and Nat Gas are still going to be part of the mix for a long time, and their recent price surges show just how ridiculous the political policies have been on spurring new development in those regards.

      The Energy sector is at a very interesting point, and if the world wants to continue to push emerging markets to electrify, and wants electric powered cars, buses, and bikes to replace oil & gas, then not only are they going to need better energy solutions and all the energy inputs to the grid (including nuclear) but they are going to need a massive amount of more industrial metals like copper, silver, zinc, and nickel. This presents an interesting opportunity for resource investors to continue positioning in front of these unfolding megatrends.

      Reply
        Oct 11, 2021 11:45 PM

        For a couple of years I worked at the EMS (Energy Mgmt System) for a fairly large electric utility. As such I was all over the place – on the switching/management floor and at the trading center. All you need to do is watch the energy output of a wind farm drop to zero one day to know that you better have something to handle baseload when there ain’t no sun and ain’t no wind. I much prefer uranium over coal – it is safer and better in the long run. And as Doomberg says – “better is better”.

        Reply
          Oct 11, 2021 11:11 PM

          Agreed on all points Mike. To be clear, I’m not against Solar or Wind, but as you mentioned those power sources are intermittent and it isn’t always sunny or windy. Just look at how the UK was recently screwed when the winds stopped in the North Sea after all the investment in wind power, and so more coal and oil is needing to be burned to offset the lower than expected power generation from renewables.

          Yes, nuclear is many times better than coal on various metrics for energy output and safety and over time more rational thought will come back to the energy sector, and realize none of these power generation methods are the cure, and there is no silver bullet solution. At this point we need a balanced mix of power generation methods and solar, wind, geothermal, tidal, and run of river renewable power sources are fine where they can help, but they should not have been elevated to the status they’ve received in the media or politics the last 3 decades, and nuclear should not have been demonized as much as it has for the same period of time, as it’s doing the 24/7 baseload job the other carbon-neutral methods can’t, and supplementing the fossil fuels power generation in a meaningful way.

          Reply
      Oct 11, 2021 11:18 PM

      Energy Fuels (UUUU)(EFR.V) – Uranium Power Players Investor Forum

      Channelchek – Sep 3, 2021

      “Energy Fuels is the leading U.S. producer of uranium – the fuel for carbon- and emission-free nuclear energy. Nuclear energy is expected to see strong growth in the coming years, as nations around the world work to provide plentiful and affordable energy.”

      “Energy Fuels is also a major U.S. producer of vanadium and an emerging player in the commercial rare earth business where its work is helping to reestablish a fully integrated U.S. supply chain.”

      “With a truly unique portfolio, Energy Fuels has more production capacity, licensed mines and processing facilities, and in-ground uranium resources than any other U.S. producer. It boasts diverse cashflow-generating opportunities, including vanadium production, uranium recycling and rare earth processing.”

      https://youtu.be/3GxGQkQD0b0

      Reply
      Oct 11, 2021 11:33 PM

      While this is somewhat dated now, it is still a really nice review of a number of Uranium mining stocks and related shares that investors can buy to participate in the bull market. While the easiest money has already been made, many mining stocks have corrected back down by 20-30% now since their mid-September peaks, and present a more compelling accumulation point. Personally, I hope the sector pulls back even more, as I’m only 60% allocated to 7 U stocks at present, and would love the opportunity to finish buying back into positions I had sold out of in mid Sept.

      One of the keys is to have a good watchlist of companies to be able to exploit market weakness when it shows up, and this chat was a nice shotgun approach through a number of the key names in the space.

      ______________________________________________________________________________

      25+ Uranium Stocks I’m Watching or Wanting

      Baby Investments – July 1, 2021

      “Terry Papineau is a retired teacher from Canada whose portfolio is now 100% invested in uranium stocks.

      In a previous clip that I shared on here, he told me that about 60% of that portfolio is invested in early stage exploration uranium companies, which are looking to find uranium in the Athabasca Basin, which, if successful, could make their market cap go up 10X or even 20X.”

      “So, at the end of our conversation I decided to ask him about some of the uranium stocks I’m watching, or wanting right now.”

      TIMESTAMPS:
      00:00 Important notice
      00:30 Greedy & shameless plug
      02:00 Kazatomprom stock
      02:39 China General Nuclear stock
      03:03 UPC & Yellowcake stock
      03:28 Ur-Energy stock
      03:53 Energy Fuels stock
      04:41 Bannerman resources stock
      05:50 Peninsula energy stock
      06:12 Denison mines stock
      08:00 GoviEx Uranium stock
      08:45 Fission Uranium stock
      09:40 NexGen Energy stock
      10:55 Boss Resources stock
      11:13 Global Atomic stock
      12:00 Western Uranium & Vanadium stock
      13:09 Elevate Uranium/Marenica stock
      13:39 Paladin Energy stock
      14:35 Baselode Energy stock
      16:03 Standard Uranium stock
      18:12 Azincourt Energy stock
      18:40 Skyharbour Resources stock
      19:15 Iso Energy stock
      21:00 CanAlaska Uranium stock
      22:05 Laramide Resources stock
      22:35 International Consolidated Uranium stock
      23:40 Fission 3.0 stock
      25:26 Closing thoughts

      https://youtu.be/L6Hcrl5qlPU

      Reply
        Oct 11, 2021 11:42 PM

        For those that don’t want the risk of individual companies in the Uranium space, there are a few different ETFs to take advantage of the next leg in the bull market, as highlighted in this article.

        ____________________________________________________________________________

        Uranium ETFs: An Emerging Market and Opportunity

        Melissa Pistilli – October 5th, 2021 – Investing News Network

        “Unlike gold, which offers dozens of ETF options, there are just four pure-play uranium ETFs in the space. The first, the VanEck Vectors Uranium + Nuclear Energy ETF (ARCA:NLR), launched in 2007 and tracks a market cap-weighted index of companies in the uranium industry.”

        “The Global X Uranium ETF (ARCA:URA) also tracks a basket of miners, while the North Shore Global Uranium Mining ETF (ARCA:URNM) lists both producers and explorers for broader exposure.”

        “The Horizons Global Uranium Index ETF (TSX:HURA), created in 2019, was the first pure-play uranium ETF in Canada. It provides exposure to the re-emerging growth in the uranium industry.”

        “Although it’s not an ETF, the Sprott Physical Uranium Trust (TSX:U.UN) is also worth mentioning due to the status it’s gained as an alternate uranium investment. ”

        https://investingnews.com/daily/resource-investing/energy-investing/uranium-investing/uranium-etfs/

        Reply
          Oct 11, 2021 11:57 PM

          Take a look at this – a small modular nuclear reactor:
          https://www.rolls-royce.com/innovation/small-modular-reactors.aspx#section-programme-updates

          Very cool!

          Reply
            BDC
            Oct 11, 2021 11:36 PM

            Yes. What process?
            The High Temperature Pebble Bed method is a good one.

            Oct 11, 2021 11:11 PM

            Absolutley Mike. The small nuclear reactors could be a game changer in spreading another wave of nuclear reactors to remote job sites or remote communities, for government use, and without the risk of meltdowns. While the SNRs have been tested a few times by Russia thus far, I’m anticipating a much larger adoption rate over the next decade, further underpinning even more demand for nuclear fuels.

    Oct 11, 2021 11:05 PM

    It was great to have Justin Huhn back on the KE Report and get his informed insights on the Uranium markets.

    The buying in the spot uranium markets over the last 2 years has been a big part of the supply destruction story – first by producer like Cameco and Ur-Energy, then by non-producers like Denison, UEC, Uranium Royalty corp, enCore Energy, and Boss Energy, and most recently by the buying from the Sprott Physical Uranium Trust.

    However, as was discussed in the interview, the main driver moving forward will be the resumption of negotiations between the utility companies with the Uranium producers and advanced developers, which will move the much more important “term” pricing.

    In addition, the big reduction of supply from the secondary market from the DOE no longer dumping, the drying up Russian underfeeding, and most recently the transition of Japan from being a seller, to a holder/buyer, as they get ready to restart 16 more reactors was a key takeaway from the discussion.

    Reply
    Oct 11, 2021 11:14 PM

    Unless we are to have a panic in the conventional markets, precious metal stocks have hit bottom, but you should always have cash sitting on the sidelines waiting to pounce.

    Reply
      Oct 11, 2021 11:23 PM

      Good thoughts DT. It is good to have cash raised and waiting to pounce on deals, and personally, I’d love to have a bigger cash pile right now to deploy into all the severely discounted gold & silver stocks on the clearance rack.

      I’ve horse-traded out of a number of earlier stage exploration drill plays, and focused on beefing up positions in the development-stage companies with defined ounces in the ground that are still doing solid exploration, and in the growth-oriented producers that have a good track to run on for expanding production and continuing to grow through development and exploration.

      If the weakness lasts through year-end, then so be it, but things are not pricey here in the PMs by any stretch, and based on where the miners are trading in relation to the underlying metals prices, they look poised to have a pretty nice run higher next year.

      Reply
        Oct 11, 2021 11:54 PM

        There are a couple of stocks I want to pounce on, if the conventional market corrects big time, I want to buy Eloro Resources, New Found Gold, Eskay Mining, and Lion One Metals. Go after the best of breed if the stock market goes over the edge of Niagara. It’s all an illusion until it happens, and the farce becomes reality.

        Reply
          Oct 11, 2021 11:09 PM

          Yep, if we see a Niagara event in the general stock markets, it would likely be a “sell everything” event, but that would put quality stocks at even better prices than what we have today. However, since nobody knows if we will or won’t see that “waterfall decline,” then scaling into the PM miners or Uranium miners on any further weakness, seems like a good plan to me. They are already at attractive valuations compared to the underlying metals, so if they pull back an additional 10-20%+ then they’d be at back up the truck levels.

          Reply
          Oct 11, 2021 11:20 PM

          Bob Moriarty loves all four and recently wrote them all up.

          Reply
            Oct 11, 2021 11:36 PM

            I like all 4 and have owned them all. Bad part…I don’t have any of them. Mistake.

            Oct 11, 2021 11:43 PM

            Correction: never owned NFG. Missed but have Labrador on the same fault.

            Oct 11, 2021 11:51 PM

            David, along with penguin tenacity and perseverance, patience is also required. I’ve left a lot of money on the table by selling for a quick profit or being impatient, only to watch from the sidelines as the stock soars.

    BDC
    Oct 11, 2021 11:27 PM
    BDC
    Oct 11, 2021 11:33 PM

    Michael Boutros: Gold & Silver (25:20), Oil (43:10)
    https://www.youtube.com/watch?v=GXrtFRd0sV4

    Reply
    Oct 11, 2021 11:00 PM

    Zijin’s Lithium Foray Adds To China’s Push For Battery Materials

    Bloomberg News – October 11, 2021

    “Zijin Mining Group Co. is making its first foray into lithium — a key raw material for batteries — with a C$960 million ($770 million) purchase of Neo Lithium Corp.”

    “The major Chinese gold and copper producer agreed to buy all outstanding shares of Neo Lithium for C$6.50 each in cash, according to an announcement on Friday.”

    “Zijin’s venture into lithium highlights the intensifying race across China’s supply chain to lock in supply as the energy transition boosts demand and spurs a shortfall. The world’s biggest maker of electric-vehicle batteries, Contemporary Amperex Technology Co., will acquire Canada’s Millennial Lithium Corp. after trumping an offer from Ganfeng Lithium Co. CATL also holds an 8% stake in Neo Lithium.”

    https://www.mining.com/web/zijins-lithium-foray-adds-to-chinas-push-for-battery-materials/

    Reply
    Oct 11, 2021 11:03 PM

    Copper Bulls Get Electric Shock As World’s Factories Slow Down

    Bloomberg News | October 11, 2021

    “As a reliable gauge of economic health, copper is fast becoming a canary in the coal mine for analysts and academics, who fear that the surging costs of natural gas and electricity will send markets reeling. That could unleash a bout of stagflation, where demand from consumers and manufacturers craters but the costs of goods and raw materials remain stubbornly high.”

    “In the short term there are some headwinds, mainly due to concerns about China’s economy,” said Jay Tatum, portfolio manager at New York-based Valent Asset Management. “But once the world gets back to normal growth rates, evenly spread across the economy, we still think there’s a strong case to be made for metals like copper.”

    https://www.mining.com/web/copper-bulls-get-electric-shock-as-worlds-factories-slow-down/

    Reply
    Oct 11, 2021 11:53 PM

    The Early Stages Of An Energy Shock

    by @Goldfinger on 11 Oct 2021

    “It was only 18 months ago that you couldn’t give away a barrel of crude oil. Today, a barrel of West Texas Intermediate Crude Oil will cost you more than $80”

    “How things have changed since April 2020. Demand is surging and supply isn’t catching up fast enough due to recent underinvestment in the energy sector.”

    “At the current pace global oil demand is on pace to surpass 100 million barrels per day in December.”

    https://ceo.ca/@goldfinger/the-early-stages-of-an-energy-shock

    Reply

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