Standard Uranium Ltd V.STND

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[glasrado]

August 2, 2024

 

Temporary pullback in uranium equities means opportunity

 

Dear Reader,

 

The 2024 commodities supercycle is shifting into high gear as we kick off the month of August with gold eclipsing US$2,500 an ounce for the first time in history.

Silver is also charging higher and will likely break above US$30 an ounce in the coming weeks.

One often-overlooked metal that’s also performing quite well is uranium. It’s holding strong around US$85 per pound, and it would not surprise in the least to see another spirited run to US$100-plus by year-end.

Of course, “we” haven’t been overlooking uranium, or yellowcake as it is commonly referred. Not by a longshot! 

In fact, we’ve recommended a string of uranium exploration and development firms that have gone up anywhere between 200% and 400% in the current and prior uranium bull cycle. 

Looking ahead, the fundamentals are firmly in play for a rising uranium market over the next couple of years at a minimum.
With uranium, what we arrive at is a market that’s consuming close to 200 million pounds of yellowcake annually — yet producing only around 140 to 150 million pounds.

That equates to a 50 to 60 million pound structural deficit this year… which, when compounded over the next five-plus years to the end of the current decade, balloons to a jaw-dropping ~360 million pounds.

Billionaires Go All-In on Nuclear Energy

 

The world’s prominent billionaires are getting in on the massive profit potential of nuclear energy.

Jeff Bezos is backing General Fusion, which is building a $400 million plant in the UK.
Peter Thiel is backing Helion, with over $570 million raised to build its first reactor by the end of 2024.
Bill Gates is the founder and chairman of TerraPower, which has raised $750 million to build next-generation nuclear reactors.
George Soros has led funding rounds for Commonwealth Fusion Systems to the tune of $1.8 billion.
But you don’t need billions or even millions to profit from this nuclear melt-up.
Just $100 could turn into a six-figure payday… we’ll show you how!

 

That’s a staggeringly large deficit… and it underpins the escalating need for new domestic and friendly uranium sources reaching the supply chain.

It’s also vitally important to understand that nuclear energy fueled by uranium is the only source of baseload, carbon-emission-free electricity generation. 

Nuclear power plants are also far more reliable than wind and solar plants… and they can produce more electricity on far less land. 

For example, nuclear plants generate baseload electricity more than 90% of the time, whereas wind turbines only run about 35% of the time and solar about 25% of the time.

A 1,000 megawatt nuclear power plant needs just over a square mile of land, while a comparable wind farm requires 360 times that and a comparable solar plant needs 75 times. Plus, with the advent of Small Modular Reactors (SMRs), the footprint for nuclear is about to become even smaller and far more flexible.

As we all know, demand for clean, carbon-emission-free energy is rapidly increasing… and policymakers on both sides of the aisle are finally recognizing nuclear’s critical role in reaching net zero emissions by 2050.

Yet, interestingly enough, and despite the numerous tailwinds in the nuclear space, we’re actually seeing a moderate, yet temporary pullback in the uranium equities.  

As staunch contrarians, we’ve been looking for a setup like this as a strategic entry point into a select few small-cap uranium equities… and we absolutely LOVE IT when the market cooperates!