Hi everyone,
This isn't financial advice. Never rush into investments. Always take your time to do your own DD before investing.
Last couple months we saw more and more LT contracts signed at higher and higher uranium prices: Cameco, Kazatomprom, Orano, CGN, Paladin Energy, Global Atomic, Uranium Energy Corp, Peninsula Energy, Energy Fuels, UR-Energy, EnCore Energy
3 weeks ago we got confirmation. Several uranium transactions were made above an uranium price of 60 USD/lb, even Encore Energy announced a small uranium transaction at 70.50 USD/lb, while uranium through the spotmarket today is only at ~49USD/lb.
EnCore Energy:
UR-Energy:
Indeed, based on the global uranium production cost curve analysis vs the global uranium demand, uranium transactions around 80 USD/lb will eventually happen in the near future. It's just a matter of time.
Source: World Nuclear Association/Deep Yellow
Today investors can buy physical uranium through Sprott Physical Uranium Trust (U.UN on TSX) at an uranium price of only ~48.00 USD/lb (= U.UN share price 16.15 CAD/share), while transactions are occurring now above 60USD/lb and even already 70USD/lb
With increasing pressure on Short Term uranium delivery due to overfeeding (shortage in western enrichment capacity leeds to overfeeding (for more explanation see link below), Intermediaries (financial players, producers,…) & Utilities will more & more rush for uranium in the spot market to get uranium from Olympic Dam, Uranium One, African JV partners (together ~25Mlb/y new uranium goes through spotmarket), because signing more LT contracts without a significant production increase in the short term will not help.
Overfeeding explained: https://mobile.twitter.com/quakes99/status/1602170426977050627
An additional annual uranium demand of ~22 Mlbs due to overfeeding compared to:
a) an annual global uranium production of 135 Mlbs in 2022 => 22/135 = impact of ~16.50%, that's a big impact.
b) annual buying of 25 Mlbs/y of new produced uranium per year in the past + the biggest part of the additional 22 Mlbs needs => Uranium demand in the tiny uranium spotmarket could increase between 50% and 100% (doubling) in the coming months
Previous years those 25 Mlbs/y of new produced uranium that were sold through spotmarket were always used by existing reactors and carrytraders without a situation of overfeeding. So now with the start of overfeeding the uranium demand in the spotmarket is set to increase significantly (additional ~22Mlbs/y) (Demand in the uranium spotmarket could increase between 50% and 100%. That's big)
Cantor Fitzgerald:
Source: Cantor Fitzgerald, January 9, 2023, posted by John Quakes on twitter
Source: Cantor Fitzgerald, January 9, 2023, posted by John Quakes on twitter
Source: Cantor Fitzgerald, January 9, 2023, posted by John Quakes on twitter
Source: Cantor Fitzgerald, January 9, 2023, posted by John Quakes on twitter
Conclusion:
When Sprott Physical Uranium Trust isn’t buying in spotmarket, Utilities, producers and others are and have been slowly buying small volumes in spotmarket, because:
If interested, also:
Sprott Uranium Miners etf (URNM etf): well diversified 100% uranium sector etf
Note: The Bear Traps Report is a professional report read by 600 institutional investors (banks, hedge funds, ...)
The holdings of Sprott Uranium miners etf (URNM etf): https://sprottetfs.com/urnm-sprott-uranium-miners-etf/
Note: The ASX was a much more depressed stockmarket than the TSX and US stockmarket, by consequence the ASX listed uranium companies are significantly cheaper than their peers listed on the TSX and US stock exchange (based on the EV/lb of each company).
This isn't financial advice. Never rush into investments. Always take your time to do your own DD before investing.
Cheers
By - Napalm-1
Thanks for the financial advice. I'm going to rush into this investment and not waste any further time.
good call. this is where i go for all my financial advice. handed out confidently, competantly and its free.
It’s that time again!
Annual uranium day is always a highlight for me and the kids, we get some yellow balloons and eat yellow fairy floss...
Some green glow sticks too?
Seems to be every fortnight with Uranium.
I am already down 50-66% after last posts. Feelsdumbman.
Pumpty pump before the Dumpty dump 💩
keep pumping those uranium bags on every subreddit you can find bro 😎
Always after a big green day as well. Crickets when it's a drawn out red.
Mate if I listened to your post months ago I'd be down like 20-30% lol
Uhh, excuse me, Professor Brainiac, but I worked in a nuclear power plant for ten years and I think I know how a proton accelerator works.
Happy new year Napalm.
Happy new year
Don't listen. The poster is like one of those onlyfan bots that just scatter posts any stock based subreddit trying to get desperate dreamers to carry his bags. Invest in good old lithium instead.
😬 lithium!
Don't listen. The commenter is like one of those onlyfan bots that just scatter comments any stock based post trying to get desperate dreamers to carry his bags. Invest in good old fintech instead.
Don't listen. The commenter is like one of those onlyfan bots that just scatter comments any stock based post trying to get desperate dreamers to carry his bags. Invest in good old fossil fuel instead.
So PEN15 erect?
Still waiting for zip to moon.
Missed the tldr. Which companies are producing today with healthiest balance sheet?
I saw bar graphs. I'm all in.
Who gonna push the price?