Thread by @BambroughKevin

Great thread…

I cut one of the charts to demonstrate what I saw in early 2003 that blew me away. I was positive that buy and waiting would well rewarded then. 10x in 10 years for sure I told anyone that would listen. (Along with Eric Sprott)

https://twitter.com/hchris999/status/1460450530501799936

Declared it the best commodity story I had ever seen. I swear on my life it’s not only a better set up today. Risk to reward is off the charts.

Inventories are nearly completely out, add up the restarts and new mines as we have a massive hole a few years out.

Factor in that many mines will be delayed while many reactors will continue to get life extensions, quickly be restarted and new ones will be added. It’s explosive.

What keeps surfacing in my mind is that utilities have begun calling $KAP and others with 10 yr RFP’s. vs 2-3 year in recent times. (As per $KAP Chief Comercial Officer)

This is such a key trend that you must understand because it’s going to soon set things on fire

Fact is when you look at the massive supply demand gap and put in projected demand from China and understand the inventory build they will be undertaking you realize that it’s completely impossible for all the utilities to contract a 10 year supply agreement now even if they want

Once all the major reliable mines are sold out on a 10 year basis it’s gonna get very scary for those utilities that haven’t locked in a 10 year agreement. How much comfort will they have relying on unbuilt or un permitted mines? I expect we will soon see that panic into the spot

This cycle there isn’t the government inventories from down blended nuclear weapons material. Governments are now buyers and looking to have supply security.

This cycle $cco could really find itself in a tough place as they have more lbs sold then they can produce.

It’s crazy to think that the markets 2nd largest producer could find itself in a cash squeeze this cycle if the price rises a lot quickly. If that starts to unfold it will fuel panic and encourage greed. This setup is the most explosive backdrop I’ve ever seen in any commodity

Remember. They will not shut down nuclear facilities due to a price spike. $200/lb $300/lb $500/lb even $1000/lb. To risk being a forced buyer in today’s uranium market is reckless insanity. Black swan even, major mine problems, major mine delays, many things could spark it

It’s truly a crazy situation. It’s also comical when I think back to some recent convos that I’ve had with some reporters covering the space. They are focused on the spot market and the lack of utility demand in spot today. Talking about them being well covered for 3 years.

It’s such a shortsighted and frankly absurd narrative. You’ve got some states in the USA very reliant on nuclear power for their economies and you think 3 years of inventory is plenty. That’s not how this market works. 2 year fuel cycle means 3 years is 1 year.

The USA fleet will not want uranium inventories under 80mln lbs. that’s basically min working capital for safe reliability of fuel rod supply.

Just keep thinking about the main point of this thread. 10 year supply agreements are getting locked up now and…

One 1/3 or more of the nuclear power industry will be shut out and find themselves unable to get a 10 year contract at any price. Their simply not enough mines known and coming on to write enough contracts to satisfy the industry on a 10 year basis

Panic will come to this market and I’m absolutely certain of it. I honestly can’t tell you where the price of uranium could or should peak this cycle. The utilities are mad and want to blame sput but they have only themselves to blame

They bankrupted the uranium mining industry and now they’ve royally screwed themselves. Have a nice day #urankum