Justin Huhn: Institutional Money Pouring into Uranium
Tom welcomes returning guest Justin Huhn to the program to talk about everything uranium related.
Justin discusses the very long base that has been built for uranium and why recent moves in uranium equities are a good sign. There has been a supply shortfall for a couple of years since MacArthur River was shut down, and this year Covid has exacerbated that situation.
The bulk of secondary supply comes from underfeeding in the enrichment process when there is excess capacity. This supply will slowly diminish once primary demand increases.
This rally is different since it’s based on sentiment instead of seasonal factors or just mine closures. Institutional money is now catching wind of the sector. Justin discusses how a recent report has garnered the attention of both these institutions and investors.
He discusses why the Cigar Lake Mine shut down and how much longer he expects this to continue.
There are around 175 million pounds of uranium consumed globally and typically 150 million pounds of supply. This shortfall in recent years has been made up for by secondary supply. Utilities have yet to buy much, but eventually, they will enter into long-term contracts.
Justin outlines the numbers of reactors that are being built and when they should come online. He says, “Nuclear is expected to be an ongoing growth industry.”
He discusses the different ways to invest in uranium and what he looks for within the uranium space. The URNM ETF may be a good way for investors to gain exposure to the sector. He expects 2021 to be an excellent year for uranium.
Time Stamp References:
0:00 – Introduction
0:32 – Watch This Boiling Pot
1:30 – Supply-Side Fundamentals
3:35 – Secondary Supply
5:07 – The Current Rally
10:55 – Supply Deficit Numbers
15:54 – Mine Development
18:45 – Green Agenda & Nuclear
21:15 – Investing in Uranium
24:20 – URNM ETF Chart
26:03 – Forecast For 2021
30:36 – Existing Mines & Demand
32:45 – US Policy on Uranium
38:06 – Market Top Signs
39:50 – Wrap-Up
Talking Points From This Episode
- Uranium Rally and Production
- Mine Shutdowns and Supply.
- Future Mines and ETF’s
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 are 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.