Justin Huhn: Elon Musk Backs Nuclear Energy
Tom welcomes returning guest Justin Huhn to the program to talk about everything uranium-related. Justin discusses prominent voices advocating for nuclear energy and why it helps the industry. Recent developments around holding physical uranium by other companies and ETF’s is very encouraging. The fact that Denison is buying and storing uranium at a premium is good news for the market. A lot of liquidity is now trending into the uranium sector.
Justin discusses the supply situation for uranium and how some long-running mines are now coming offline. Closures are a reasonably big deal since it reduces the diversity of market sources. The bulk of supply comes from Kazakhstan, and currently, Cameco in Canada is producing zero pounds. Small amounts are coming from Namibia, Uzbekistan, and Australia. Overall, supply is tight, fragile, and past 2025 quite uncertain.
Uranium equities have been rallying, and it seems like small investors are getting ready for a wave of big money to enter the market. There is a long way to go in terms of valuations in the sector.
China is expanding and is a huge growth area for this market. There is a growing understanding of this sector, and we are in a much different environment than in 2007. Capital markets have changed, and we will likely break the previous market cap. We will probably overshoot during this bull market, but who knows what the height will be.
He explains how SWU prices work in relationship with enrichment and why it indicates a decline in secondary supply.
So far, the Biden administration seems supportive of nuclear as a form of clean energy.
This market has fundamentally changed since December; this is not just retail chasing small moves. Real money that appears to be smart has come into space. It’s just a matter of time before this market gets squeezed.
Time Stamp References:
0:00 – Introduction
0:32 – Uranium Endorsement
1:23 – Denison & UEC
5:30 – Fragile Supply
8:35 – Big Money Coming?
12:40 – Calling Recent Bottom
13:54 – This Cycle High
16:43 – SWU Enrichment Price
19:15 – SMR Reactor Tech
21:10 – Utility Commitments
23:33 – Biden & Uranium
24:58 – Strategies & ETFs
28:40 – M&A in Uranium
29:17 – Risk & Share Structures
31:30 – Energy Stocks & Inflation
32:27 – Concluding Thoughts
Talking Points From This Episode
- Uranium Rally and Production
- Mine shutdowns and future supply.
- Future Mines and ETF growth.
- Why the uranium market has changed.
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 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.