Justin Huhn: Big Bets Being Placed in the Uranium Market
Tom welcomes back Justin Huhn to discuss the latest news around the rapidly changing uranium space.
Justin discusss Cameco’s recent conference call where they announced the restart of the MacArthur River Mine. Cameco stated that they have signed supply contracts for 70 million pounds of uranium. Overall this should be a postive sign for the market and may indicate a major change in contract demand. It will take Cameco up to two years to once again reach full production.
Sprott’s entrance to the market last year with SPUT had a tremendous impact on the spot market. Current long-term prices are around $43 a pound but little insight can be garnered from contracts as they are shrouded in NDA’s. All the different parts of the fuel cycle appear to be in a bull trend. Sprott intends to maintain the stockpile of uranium as a way to give investors expose to the uranium market.
Sprott is also working to takeover the UNM ETF in an upcoming vote. This will allow Sprott to have a large influence in the uranium markets.
The market for small modular reactors is largely an unknown but overall it appers to be a positive development. The first SMR in North America may come online by 2027. Many countries are building them including Russia.
Sentiment has improved somewhat in uranium markets but remains fairly low. At the moment there is a lot of fear and doubt across the investment space which is spilling over into uranium. However, Justin notes that Rick Rule is once again getting excited about the prospect of discounted uranium equities.
Time Stamp References:
0:00 – Introduction
0:49 – Cameco Call
5:58 – Restart Period
9:39 – Spot Pricing
17:14 – SPUT & NYSE
18:25 – Supply Tightness
24:16 – Reactor Extensions
27:00 – Small Mod. Reactors
29:40 – Market Sentiment
33:54 – Uranium & Corrections
36:10 – Cash Position
37:00 – Concluding Thoughts
Talking Points From This Episode
- Cameco’s recent announcements and the impact on markets.
- Sprott’s plans and the effects of the introduction of SPUT.
- The benefits of small modular reactors and who is building these.
- Sentiment in the markets and why some uranium equities are discounted now.
Justin is the Founder and Publisher of the Uranium Insider Pro Newsletter. Through the combination of rigorous fundamental analysis and Justin’s thorough understanding of technical analysis, determinations are made for select companies to be included on Uranium Insider Pro’s “Focus List,” as well as the most opportune times for entry or exit.
Justin is frequently asked to offer his commentary on various media forums, including Crux Investor, Smith Weekly, Palisades Gold Radio, Mining Stock Education, and Mining Stock Daily. He also regularly participates in the post-earnings commentary that is broadcast immediately after industry majors release quarterly earnings.
Justin is devoted to bringing value to those that are taking their first look at the uranium sector. Until July 2020, he distributed a complimentary newsletter as an educational tool to those investors seeking to familiarize themselves with the complexities and opportunities offered by the uranium sector and the uranium shares. Regrettably, the Uranium Insider Pro subscription letter’s subscriber growth and breadth no longer allow him to provide this tool.
The success of Uranium Insider has been gratifying and the emerging bull market in uranium continues to offer an unusually attractive risk:reward proposition for fellow contrarian investors.