Lobo Tiggre: Uranium Series Part 6: Uranium is the Territory of Ten Baggers
Lobo Tiggre is the founder of the Independent Speculator, but you may know him by his pen name Louis James. He says, “People need to pay attention to the uranium market as this is the territory of ten-baggers.” Uranium is a sector where there are few players, and the quality assets can go up by multiples when the uranium price moves. When it does, it moves mountains both literally and figuratively.
Large parts of the world including China and India must use nuclear to keep the lights on, and even the United States gets 20% of its electrical needs from nuclear power. The fundamental reality of this market is that uranium is not substitutable.
Even in a worst-case scenario uranium still has to increase as it’s below the cost of production. The largest producer in the world KazAtomProm is getting more aggressive with their pricing and Cameco’s flagship uranium asset McArthur River has been shut down. Both companies realize the economics of the situation.
Many analysts see $60 as an incentive price for uranium production to increase. He says, “I don’t want to count on crazy prices, I want to minimize the risk and see projects that work at lower prices. You don’t have to have crazy prices to win on uranium.” There are strong signals that the market wants to go higher.
He names two picks for the exploration space. He is also bullish on vanadium as that story is solid and is often found along with uranium deposits.
Talking Points From This Week’s Episode
• Uranium prices must go higher for mine development to be feasible.
• Worldwide demand for uranium is increasing while supply is declining.
• Prices are below the cost of production for nearly all producers.
• Vanadium is looking attractive and is often found with uranium deposits.
Lobo Tiggre is the founder, CEO, and principal analyst and editor of Louis James, LLC. He researched and recommended speculative opportunities in Casey Research publications from 2004 to 2018, writing under the name “Louis James” for privacy reasons. While at Casey Research, he learned about the newsletter business from Casey co-founder David Galland, and resource speculation from the legendary speculator Doug Casey himself.
Although frequently mistaken for one, Mr. Tiggre is not a professional geologist. Nor does he hold the CFA designation, and he is not a licensed financial advisor. Tiggre is a speculator who, during his time with Doug Casey, also learned from many other industry leaders, including Sprott-Global’s Rick Rule, former newsletter writer Bob Bishop, fellow newsletter writer, and geologist Brent Cook, exploration geologist and multiple mine-finder Ron Parratt, and many others.
Mr. Tiggre is a graduate of Aiglon College in Chesières-Villars, Switzerland. His formal education included studies in physics at Rensselaer Polytechnic Institute. He also studied economics at UNC-Chapel Hill and wrapped up with a magna cum laude BA in sociology from Duke University.
Tiggre grew up speaking both Spanish and English. He later learned French, German, and is now working on Russian. He is happily married with five children. He lives in San Juan, Puerto Rico.