NYSEAM:UEC - Post by User
Post by
mangoeon Oct 06, 2024 6:04pm
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Post# 36255331
⚡️The news that a second former officer of #Uranium miner
⚡️The news that a second former officer of #Uranium miner 
The news that a second former officer of #Uranium miner Kazatomprom $KAP has been arrested this year to face trial in #Kazakhstan 
appears to add credence to predictions I made last month.
As this #Nuclear Renaissance gathers more steam, driving even more demand coming from China, India, Russia and a growing line of Nuclear wannabe nations, I think the uranium market may be in for a major shake-up.
The downwardly revised long-term Uranium production outlook out of Kazakhstan, the world's largest supplier, amidst soaring costs & escalating taxes that are putting Kazakh-mined U3O8 on par with production costs in safer Western jurisdictions like Saskatchewan, could trigger some unexpected changes, especially in light of recent comments by $KAP's CEO that it's getting "too costly" to ship drums of U3O8 via alternate routes to the West... making it cheaper & more sensible to redirect those shipments away from the US & Europe to China & Russia instead.
It would not surprise me to see Cameco announce that it's selling its 40% ownership stake in the Inkai JV in Kazakhstan, using the proceeds to acquire new greenfield mine projects in Canada with their French partner Orano, thereby eliminating all uncertainty around future Kazakh costs, taxes, mining regulations & government policy, shipping headaches and worries over timely delivery into Cameco's sales contracts. 
It would also not surprise me to see Kazatomprom announce that they plan to delist from the London Stock Exchange and revert back to a private state-owned enterprise that would no longer have to deal with foreign scrutiny and the burden of public company reporting requirements, able to make unfettered choices and management decisions better aligned with the interests of the government of Kazakhstan rather than foreign shareholders abroad.
KAP launched their IPO nearly 6 years ago in November 2018 at the bottom of the bear market when it was desperate to raise capital and expand its access to foreign markets in a bid to maintain its position as the world's leading producer. All that has changed now. Next-door neighbours China and Russia now need every lb of uranium that Kazakhstan can produce! BRICS allied nations could readily provide all the Uranium supply contracts Kazakhstan needs for decades to come, without having to contend with ongoing concerns about western sanctions on Russia, an export ban by Russia blocking Western shipments of Kazakh production from St. Petersburg, and the complex and expensive shipping to deliver canned yellow cake to Western utilities via alternate routes. 
Everything has changed since the bear market of 2018. Such a move by Kazakhstan would likely trigger panic buying in the uranium market, sending prices soaring and adding even more wealth to Kazakhstan.
Just saying...
Hat tip to for his $KAP resignations table.
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