Discussion about this post

User's avatar
Super noob's avatar

Excellent comment

Having been a relatively close follower of the uranium market for a while now one can only be surprised about the sheer amount of astounding details:

- overall market value of ALL existing uranium producers, -developers and explorers (at least as of a few weeks ago): around 30-40 billion USD, less than one Uber

- most producers shut down the mines or reduced the production capacity, as to save costs

- to bring back a mine takes at least a year. CAPEX in new mines has been minimal for years, the development of a new year takes years (given that the environmental conditions are being met)

- suppliers that require uranium have been VERY complacent as they were spoiled by a demand driven market, where prices were falling over a few years

- the amount of new reactors in production (not counting those in Japan that are coming back online) are around 50, most are being built in china and india

- each GW of energy production wil require around 400k - 500k lbs of uranium

- the uranium spot market is very under developed in regards to transparency and volume. relatively little deliveries in the spot markets do actually take place near term, so sprott is now really forcing the market to be SPOT for the first time. Spot market here means Sprott asks for a delivery within 1-2 months max. (instead of a longer time window)

- speculation is not a huge factor despite the increased trend in the last week; this may change, however

Of course there are also big downside risks, e.g. possible regulatory constraints, the current depencency on Sprott and the fact that some Uranium related companies are crap (as in all equity and -commodity markets). But the risk rewards seems to be hugely skewed to the upside.

If you take these facts and add the recent shift in sentiment of the public, the fireworks may only get started. PLEASE do your own DD, these are just my thoughts based on some research i did.

Regards

Expand full comment
Jono's avatar

Lynalden.com has also been mentioning uranium as a great play for at least the last few months... Always excellent coverage on a number of topics, including your near and dear crypto markets ;-)

Expand full comment
6 more comments...

No posts