Uranium Stocks Soar: Beginning Of The Next ESG Craze?Yellowcake, a beaten down and p^ssed on sector for a long while. Maybe worth watching as
over last two days it has taken off like a rocket.
Uranium stocks tend to rally this time of the year so possible trade setting up.
List of some names to watch:
CCO U NXE UEX FCU UEC URE EFR DML ETF HURA +11% today https://www.zerohedge.com/markets/uranium-stocks-soar-beginning-next-esg-craze https://www.fnarena.com/index.php/2020/12/02/uranium-week-have-we-seen-the-lows-for-uranium/ "Uranium stocks soared on Friday after House and Senate lawmakers revealed a compromise version of the annual National Defense Authorization Act.
https://www.mining.com/us-senate-committee-approves-uranium-reserve-bill/ According to S&P Global, the bill effectively provides for the military to continue a policy under President-elect Joe Biden
that classifies the domestic supplies of certain minerals such as uranium, graphite and lithium as vital to national security. The outlook for US nuclear has never been better in the past few decades as Democrats now flip to be nuclear advocates, and with
pro-nuclear Kerry nominated as Biden’s Climate Envoy, that renaissance could spread throughout the west as US rejoins Paris Climate Accord.
Both US and Russia are also now looking to leverage their nuclear power generation capacity to produce clean hydrogen fuel, adding more value to reactors in the clean energy transition,
while creating a new revenue stream that will support maintaining the US fleet where already a number of utilities have applied to extend reactor operating lives to 80 years from the previous limit of 60.
On the supply side, 2020 has seen a record uranium supply deficit due to previous mine shutdowns, flexing down by Kazakhstan, and 5-month mining suspensions at Cameco’s Cigar Lake and all of Kazakhstan’s ISR uranium mines.
Total mined supply this year will come in under 120M lbs, a level not seen since 2008.
The 5-month cessation of ISR wellfield development, during what is usually Kazakhstan’s peak seasonal period for drilling and expanding wells to maintain production levels, is only now beginning to impact uranium production, and there is a high expectation that 2021 will see that supply destruction continue into Q2.
For the first time ever both Cameco and Kazatomprom have depleted their held inventory, forcing both to be active buyers in the Spot market in order to fulfill their contract delivery commitments. With COVID-19 case numbers continuing to spike higher in Northern Saskatchewan, chances of another temporary shutdown of Cigar Lake are increasing daily.
Spot U3O8 price has responded, jumping above $34/lb in March/April then backing off to level off near $30/lb at present to create a new floor at 25% above its March low.