Thread by @PraiseKek

@U3O8TradeTech Market Update, 2022
Thread🧵1/23

Confidential Insights into:

🔘Japanese Inventories
🔘Chinese Nuclear Expansion
🔘Utilities Contracting Cycle
🔘Supply Deficits & Demand Growth
🔘US Support for Nuclear Power
🔘 And lots more...

2/23

Treva Klingbiel kicks off with a bullish tone:

"Since we've had this last call a lot has happened, and we're getting incoming news daily that meaningfully impacts our outlook for where the #Uranium market's going in a positive way. So I just can't emphasize that enough."

3/23

Treva continues on a bullish note in regard to demand forecasts. @U3O8TradeTech is now seeing demand hitting the upper zone of the gradient, which would result in 250 million pounds of yearly #Uranium requirements demand in 2035.

4/23

Treva highlights the huge #Uranium supply deficit + the drop off in production from existing producers.

We need NEW mines to come online and fill that gap.

5/23

In-Ground Inventory Depletion:

"Those are existing producers who are continuing to mine their facility, but all the while drawing down the in-ground inventory, drawing down that asset; the available material from a particular project. Doing exactly what a miner does."

6/23

The EU & Nuclear:

"@U3O8TradeTech tends to be pretty conservative and we have a history of not achieving some of the goals. We do look at it with a pretty tough eye. But even with that kind of lens, we really see this as being a watershed moment for the nuclear industry."

7/23

Japanese Demand:

"Japan's a very interesting story. They've committed to bringing nuclear into their energy plan to represent about 20 to 22% of their electricity generation. You can see what that means in order for them to achieve that goal with this graphic here:"

8/23

Treva Klingbiel:

"And that's really reinforced by the graphic you see here, where we see that growth really sort of creeping up to the order of about 30 units, 32 units being online by the time we get to 2040."

9/23

Japanese Inventories:

Treva Klingbiel @U3O8TradeTech:

"Well, I don't like to throw out the exact number because we do have the access, we do have the numbers, but we get that through confidential relationships with the clients. So I have to be a bit careful about that."

10/23

"Japan has 3 to 5 years of forward inventory. They've managed that pretty well. There haven't been wholesale sales by the Japanese, but they basically drew it down. They will not sell it, certainly not in a market like we have today where they will be expanding capacity."

11/23

Treva:

"One of the things about the nuclear industry that's really interesting with inventories is when you have a positive outlook for nuclear or you expect the #Uranium price to move up, inventory becomes very, very valuable. And so you want to hang on to it."

12/23

China & Nuclear🔋:

Treva Klingbiel @U3O8TradeTech:

"I think China is a very interesting story from a lot of perspectives because if we look at China, they were really the initiator of the nuclear renaissance that the market experienced back in the early 2000s, right?"

13/23

Treva Klingbiel:

"Along with having an ambitious program, going full steam ahead, they are building reactors faster than we've seen anyone else build a plant. They can build a plant in about a year's time. About a year's time."

14/23

Treva Klingbiel:

"By shutting down all of their NPPs post-Fukushima & doing a safety check they demonstrated to the world that they have the same safety concerns & high level of operational requirements as the rest of the world. And that did a lot to instill confidence."

15/23

Treva:

"The US & EU NPPs are older. The average age of NPPs in China is 10 years. Even without life extensions, you've got a 40-year license. That's a lot of runways for sales opportunities. If you're looking for homes for your lbs if you want to bring on a new project."

16/23

The US & Support for Nuclear Power:

Treva Klingbiel @U3O8TradeTech:

"We now have the Infrastructure Bill that provides $6 billion for nuclear generation, nuclear power alone, $6 billion. And that was strictly for plants that were at risk because the markets were flawed."

17/23

Treva Klingbiel:

"Then that got followed by the inflation reduction act in August. Now, what's key about that is the energy portion. For us, we see it as being perhaps the most impactful nuclear legislation that's ever been passed. And here's why":

18/23

Treva Klingbiel @U3O8TradeTech:

"For those of us in the nuclear industry in the U.S., we have bipartisan support. We have state-level support. And now we have true meaningful legislation that has bipartisan support with some truly meaningful numbers."

19/23

Treva:

"Kazakhstan is the largest & lowest-cost producer in the world right now. All eyes are on them. And when they say: we're suffering inflation & supply chain issues that affect us, you need to take note, because that will flow through to any other #Uranium producer."

20/23

Cameco & Utilities:

“I listened to the $CCJ call earlier this morning, and one of the things that they highlighted that really got my attention because this is what we track all the time, was the fact that they've signed up 77Mlbs of new contracts year to date."

21/23

Treva:

"We've had a lot of calls where we've had questions about why aren't utilities doing anything? And I say they are, you just don't see them. They're doing it under the radar. I promise you they're contracting. Well, what Cameco announced today supports that."

22/23

Treva Klingbiel @U3O8TradeTech:

"One of the refrains we hear pretty often is that utilities don't care what happens with #Uranium price, they'll just pass it through to the ratepayer. My view is a bit different. I was a fuel buyer myself so I can speak to this."

23/23

LINK to the video presentation:

pifinancialcorp.com/capital-market…

END.