Brandon Munro: The Data Shows Us that Uranium has to Head Much Higher
Brandon discusses the improving tone of the uranium industry that he is seeing while attending the London World Nuclear Association Symposium. Russia’s export program has an improved order book, and US regulators are working hard on initiatives to support their industry. China and India are resuming their reactor build programs by both announcing new reactor plans. There is a strong sense of anticipation throughout the industry.
Investors have been somewhat disillusioned with the lack of new contracting surrounding the outcome of Section 232. Utilities are holding out for more information before they will begin seeking new contracts.
He can see a sequence of events coming which could push prices back to the $35 range, and when that happens, it could only take a few weeks.
Small Modular Reactors have brought a lot of new discussion to the energy market. These reactors are small, safe, and can be more palatable politically. In addition, they reduce the amount of fuel waste through reprocessing. They can be used to displace moderately sized coal power plants. These reactors can be cost-competitive, factory-built, and then transported to a site with a total build time of about three years.
Uranium is a complicated business, and therefore, management experience and companies will likely consolidate into a small handful of operators. Utility fuel buyers believe they will have a wide choice of options for buying uranium and this is simply not the case.
Geopolitics are the least stable they have been since the collapse of the Soviet Union, so geographic diversity will be important going forward. Africa has the potential to offer ownership capability and exposure to key markets.
Time Stamp References:
0:40 – WNA Symposium Conference.
1:50 – Trump and China
3:30 – Investor misconceptions
7:00 – $35-$40 Uranium could suprise
9:00 – New types of reactors.
13:30 – What will the bull market look like.
21:30 – Nuclear Fuel Report
Talking Points From This Week’s Episode
• Uranium market sentiment is improving.
• Reactor builds are resuming in China and India.
• Some large utilities understand there isn’t a lot of supply.
• Consolidation in the industry is coming.
• Brandon has played a major role within the 2019 Nuclear Fuel Report.
Brandon Munro is Chief Executive Officer of Bannerman Resources. He is a quantitative economist and lawyer with 20 years experience as a corporate lawyer and resources executive, including serving as Bannerman’s General Manager between 2009-2011, based in Namibia. Before joining Bannerman as CEO/Managing Director, Brandon was Managing Director of ASX-listed Kunene Resources Ltd, which was focused on base metals exploration in Namibia.
Brandon lived in Namibia for over five years between 2009-2015, where he also served as Governance Advisor to the Namibian Uranium Association and Strategic Advisor – Mining Charter to the Namibian Chamber of Mines.
Brandon’s voluntary roles include as Trustee of Save the Rhino Trust Namibia, a high profile Namibian NGO, and Board member of the Murdoch University Art Collection. He is also a non-executive director of ASX-listed technology company Novatti Group Ltd.