If you're new to #Uranium & #mining #stocks in general👼 then I hope this thread will help you to understand why this mined commodity⛏️ used for #nuclear reactor fuel⚛️🌞 is famous for delivering extraordinary life-changing returns when it enters, as it is now, a boom cycle🚀...2
2/ #Uranium is a cyclical commodity🔃 that goes through boom & bust cycles based on supply vs demand imbalances⚖️ magnified to extremes by supply security fears😨 as there is no available substitute fuel for #nuclear reactors & production is concentrated in so few countries .../3
3/ Like other commodities, #Uranium rises in value when supply is scarce🏜️ which in turn triggers more production to meet demand⛏️ but because its the most regulated mined metal📚 subject to the greatest environmental scrutiny,🧐 bringing new mines online is costly & slow🐌 .../4
4/ Lengthy time delay to get new #Uranium mines built or idled mines restarted🥱 while #nuclear fuel demand keeps growing🏗️⚛️ produces what can become an extreme supply deficit that keeps pushing uranium prices higher & higher as fuel buyers panic that they won't get fuel😱 .../5
5/ Today the #Uranium #mining sector is in a significant #U3O8 supply deficit due to 10 years of a low commodity price & under-investment in exploration, development & construction of new mines.⛏️ U price is less than half that needed to bring idled and/or new mines online .../6
6/ #COVID19 pandemic has further deepened the #uranium supply deficit due to lengthy mine closures in #Canada & #Kazakhstan with no chance to make up that lost production.⤵️⛏️ Meanwhile, 2 major U mines just closed due to ore depletion & no new mines are being built. 0⃣🏭.../7
7/ Throughout this period of declining mined supply, #Nuclear utilities have relied on drawing down inventory & other #uranium sources called "Secondary Supply" that has helped to meet demand during the #COVID19 crisis, but they're now running on fumes & must restock ASAP⛽️ .../8
8/ Investors aware of fantastic gains that a boom cycle in #Uranium will bring💰⛵️🏝️🍹😎 have seen what's coming for U #mining #stocks🔮🧙‍♂️🚀🌜 so money has been flowing into the tiny U sector since last year, ahead of an inevitable spike in #U3O8 prices & before the herd🦌.../9
9/ What will make this #Uranium boom cycle even more extreme is new global decarbonization #ESG drive🌞 that requires far more #CarbonFree #nuclear energy to meet #NetZero emissions goals🏗️ further supporting & spiking demand higher⚛️⤴️ in midst of a sustained U deficit⏬ .../10
10/ New #uranium mines to meet that #nuclear demand should have been financed, licensed & built yesterday⛏️ to raise U supply to rebalance the market.⚖️ A doubling of the #U3O8 price and another $4-5B investment is needed to get enough new mines built ASAP 💰🏗️🏭 .../11
11/ But building new #Uranium mines takes many years in this heavily regulated sector.🐌 Even if U prices doubled & $10B flowed into this sector💰 it can't speed up the regulatory licensing & mine construction process.🧐📜⛏️ Thus, life-changing returns are imminent once again.🤑

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More from @quakes99

25 Feb
"I'm bullish" said Treva Klingbiel, President of leading #Nuclear fuel consultants TradeTech, who gave a very bullish #Uranium Market update at today's PI Financial Uranium Day webinar.👨‍💻 I'll try to cover her main points in this thread (apologies if I get anything wrong) .../2
2/ Bottom line: New #Uranium mines needed, especially in back half of this decade after idled mines restarted. #U3O8 price tailwinds are depleted reserves, lack of investment, increasingly restricted supply, mounting uncertainty over timely arrival & cost of new mined supply../3
3/ #Uranium Price headwinds are reduced #nuclear demand from potential early reactor retirements, lower costs for (re)emerging mines, stalled utility buying due to market uncertainties, competition from other energy sources. Utility concerns continue to delay procurement .../4
Read 12 tweets
7 Feb
1) With many #Uranium Explorers now actively drilling in #Canada's #AthabascaBasin⛏️ perhaps it's time⏳ for a thread on how to interpret drill data coming soon🔜 in news releases.📰 Misunderstanding data can lead to premature exit... selling when ya shoulda been buying.🛒 🥴
2) #Uranium explorers drill rock core samples looking for signs of #U3O8 bearing ore.🧐 Rarely do they ever hit high-grade on first few attempts.😟 Geologists first look for visual signs in the core samples... here's description from pre-discovery 2013 drilling at Arrow (Rook 1):
3) Visual inspection of core samples is just 1 of many steps taken to see if they found #uranium. Presence of radioactivity is best indicator so all cores are scanned with an instrument called a Hand-held Scintillometer to produce "Scint" CPS tables for cores from each hole.🌡️
Read 11 tweets
28 Jan
Excellent TD #Uranium presentation by Grant Isaac of Cameco $CCO $CCJ today (replay coming). Here are some points:
- Cigar remains down, no restart date yet or estimate on rate of production recovery after it restarts
- SWU/Conversion robust⤴️ & expect U price to follow↗️
.../2
2/ - On-market term contracting not there yet but Off-market pipeline is back to pre-Fukushima levels
- Substantial uncovered demand with #nuclear utilities so far purchasing just 20% of needs. Delayed contracting will lead to more rapid price rise when contracting heats up
.../3
3/ - Cameco is not looking to increase their contracting beyond current 20M lbs/yr over next 5 years as that would force them to buy more Spot market material = Strategic patience
- 2020 global production down to 120M lbs & 2021 supply risk (COVID) greater than demand risk
.../4
Read 6 tweets
1 Oct 20
#Uranium Market Update in a nutshell🥜 #U3O8 continues to be a best performing commodity of 2020, up 25% YTD, up 69% from its bottom in November 2016.🐂📈 #Nuclear power growth remains robust ⚛️🏗️↗️ Demand at 182M lbs/yr & rising, Supply deficit ~60M lbs, -317M lbs by 2026⛏️⏬🗜️
#Uranium has strong #bullish outlook 🐂🔮 #Nuclear utility contracting has been below normal for past 8 yrs. Re-stocking cycle overdue with growing uncovered demand & delayed Long-term contracting since 2012.⌛️
With such strong #Uranium supply/demand fundamentals, why is #U3O8 market rebalance taking so long? 🤔 Trade Issues, Russian Suspension Agreement, #COVID19 have sidelined #nuclear utilities BUT trade issues nearing resolution, utilities getting back to work, #China going all-in🏗️
Read 6 tweets
12 Sep 20
Yee-Haw!🤠 Breaking #Uranium News!📰 US Commerce & #Russia's Rosatom have initialed a Draft Amendment to the Russia Suspension Agreement setting out new provisions, limits & terms of extension.📜 Commerce soliciting comments by 28 September. Download here:
app.box.com/s/a2jclok4se78… Image
11 September 2020 - Initial Draft Amendment to Russian Suspension Agreement - Pages 1 to 4 of 8... #Uranium #mining #nuclear #USA #Russia
app.box.com/s/a2jclok4se78… ImageImageImageImage
11 September 2020 - Initialed Draft Amendment to Russian Suspension Agreement - Pages 5 to 8 of 8. #Uranium #mining #nuclear #USA #Russia
app.box.com/s/a2jclok4se78… ImageImageImageImage
Read 4 tweets
27 Aug 20
Kazatomprom 1H20 Financial Results 💰 World's largest #Uranium producer has released its Financial & Operations Review for H1 2020 & held a 1-hour Conference Call with Q&A. 💻 Market responding positively with trading Up a tad near 52-week high👍 kazatomprom.kz/en/media/view/… Image
#Kazakhstan's #Uranium production was down -3% in first 6 months of 2020, down -7% attributable to , as #COVID19 slowdown to be primarily felt in H2 as per previous 2020 Guidance. CAPEX down -38% vs H1 2019 due to #COVID19 suspensions.⛏️↘️ Details: kazatomprom.kz/storage/2e/ofr… Image
Here are some Slides from Kazatomprom 's Conference Call. Excellent presentation with detailed coverage of ISR #Uranium production timelines, impact of #COVID19. 😷⛏️↘️ As of today, workers now back on site beginning drilling & wellfield operations after 4-month halt. ImageImageImageImage
Read 8 tweets

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