Goviex Uranium Inc V.GXU

📝Why is #Niger revoking Orano's Imouraren #mining permit ❓

[mangoe]

John Quakes

@quakes99 -

 

Why is #Niger revoking Orano's Imouraren #mining permit incredibly bullish for the #Uranium #stocks #investing thesis? Imouraren was 1 of a few large new mines expected to come online around 2030 to supply #Nuclear fuel for Western reactors as existing mines are reaching end-of-life.

Orano's Imouraren: 13M lbs/yr for 35 yrs

NexGen $NXE Arrow: 29M lbs/yr for 11 yrs

Fission $FCU PLS: 9M lbs/yr for 10 yrs

Denison $DML Phoenix: 6M lbs/yr for 10 yrs

Yes, Russia or China could step in and form a new partnership with #Niger to eventually bring Imouraren into production, but that would do nothing to alleviate the West's growing supply deficit. China's massive reactor build program will need all of that potential production and more. Russia needs to provide fuel for its growing global export fleet of Russian-built reactors.

With the US banning Russian enriched uranium imports while European utilities self-sanction by cancelling their contracts with Russia, switching to Western-supplied fuel for their Russian-built reactors, the former global uranium market model is being split into an East vs West clash to secure uranium supply in 2 separate markets.

Most importantly for investors, the world's Spot #U3O8 price is set by 3 Nuclear fuel brokers in the West, based on supply & demand for mined uranium being produced by Western miners shipped to 3 storage hubs in Canada, the USA and France. Western reactor operators compete with financial players (SPUT, YCA, UAMC, Trident/PFYN, Hedge Funds) as well as miners who are short on production to fulfill contracts (Cameco, Orano, KAP) to secure their needs from Western supply being squeezed by this East vs West divide.

As U know, investors & traders take their buy & sell cues from Spot price action, sending the share prices of publicly-traded #Uranium #mining #stocks climbing higher on global markets in response to a rising U Spot price.

Imouraren's 13 Million lbs per year of future production being cancelled or diverted East, instead of supplying the fuel needed for a Western Nuclear Renaissance, puts even more strain on an already insufficient Western Nuclear fuel supply chain.

IMHO, that can only lead to one thing - a more intense and prolonged uranium bull market that will deliver an even higher Spot Uranium price and with it far larger life-changing returns for investors in U mining stocks. That's the way I see it. Good luck with your own research, analysis and investments!