Tom welcomes back Justin Huhn to discuss the uranium markets and his recent webinar.

Justin believes that the current low price of uranium is indicative of another inflection point in the uranium industry. This is due to the positive news in June 2021, when Sprott’s takeover of Uranium Participation resulted in a surge of interest from investors which led to equities doubling and tripling over the course of the following 3 months. This is leading to the establishment of several new physical funds, providing investors the opportunity to buy uranium at a discount to its Net Asset Value (NAV).

The West is facing self-imposed Russian sanctions, making the transportation of uranium more complicated, and resulting in more uranium heading east, while Kazakhstan has formed contracts with both China and Russia for joint ventures. China is looking to rapidly increase its stockpile of uranium, and the G7 nations have recognized this and are working towards excluding Russian influence in the nuclear energy market. This could lead to a structural deficit of 180 million pounds a year in 2023 and uranium funds such as Sprott taking physical pounds off the spot market which could influence the market further.

At the same time, public opinion towards nuclear energy is shifting to be more positive and supportive in the West and United States. The anti-nuclear movement of the 70s was driven by significant financial support from fossil fuel lobbyists, however Germany’s attempt to expand renewables and shut down reactors has resulted in higher energy costs and one of the dirtiest grids in Europe. In Japan, public opinion is in strong support of nuclear power, while in the US there is also support. Occidental Petroleum’s CEO has spoken positively about the potential collaboration between fossil fuels and nuclear, pointing out that the fossil fuels are a limited resource so the companies will need to expand.

Time Stamp References:
0:00 – Introduction
1:20 – Miners & Input Costs
8:25 – Sprott & New Funds
12:56 – Term Market & 2005
20:09 – Russia & Contracts
25:44 – China Reactor Demand
28:22 – Geopolitical Changes
34:23 – Supply Shortages?
38:27 – Nuclear Sentiment Shift
48:23 – Wrap Up

Talking Points From This Episode

• The inflection point in the uranium industry has seen multiple physical funds, financial entities and funds competing for physical uranium, potentially suggesting a repeat of the 2005-07 bull market.
• West-East separation is increasing as Western utilities no longer contract with Russia due to sanctions, and East countries such as China are increasing their demand for uranium.
• Public opinion on nuclear energy is shifting more positively, seen in Germany, Japan and the US.

Guest Links:
Website: https://www.uraniuminsider.com/
Newsletter: https://www.uraniuminsider.com/newsletter
Twitter: https://twitter.com/UraniumInsider
Nuclear Now – Oliver Stone: https://www.imdb.com/title/tt21376908/

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.