Brandon Munro: The Uranium Bull Market Has Only Just Started
Brandon reminisces about the last uranium bull market and how much of it was focused around Australia. He says, “Paladin was an incredible ride in 2005 when it moved from four cents to two dollars.” That period was a wild intensely informative ride, and it taught him just how much leverage can come to uranium stocks.
Today we are in a very low price environment, and recent price changes are all pretty much irrelevant. The critical fact is that the market is bottoming due to the suspension of McCarthur River production and reductions by KazAtomProm.
The ongoing section 232 trade investigation into uranium has suppressed and paralyzed regular market activity. Utilities hate uncertainty, and their view is to wait before exercising a procurement strategy.
We have had a decade of uranium surplus as a result of Fukushima. This supply overhang persisted until recently where prices finally bottomed. Secondary supply sources have also seen recent cutbacks.
The emergence of funds who are buying physical uranium has been a game changer for the sector. We are now in a growing deficit that will be extraordinary and exceptional.
Uranium downside risks are quite minimal although there is always a small risk of another nuclear accident. New technology like laser enrichment could also become a game changer, but that technology is still some years away. Another threat to the uranium could be if a significant player like China chose to move away from Nuclear, although this seems unlikely.
He has a high degree of confidence that we are entering another bull market.
Time Stamp References:
0:45 – Brandon recalls the last uranium bull market.
2:30 – Similarites between this market and the last.
4:15 – Why price doesn’t really matter at this level.
7:10 – Overcoming the thirty dollar price barrier.
9:00 – Effects of Fukashima on pricing and supply.
13:00 – Uranium supply deficit increasing.
15:00 – Possible risks in the uranium market.
17:30 – China’s needs for nuclear.
19:30 – Uranium and why it’s an opportunity now.
20:00 – Section 232 and US production of uranium.
Talking Points From This Week’s Episode
• Thoughts from the last uranium bull run.
• Recent price action is still way too low.
• Investors are waiting on the Section 232 announcement.
• Nuclear is still a growth story.
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.