@denhaagtrader A project like this would consume 4.8mln lbs per year of #uranium. When commissioning the utility would want to have around 25mln lbs of uranium purchased and working its way through the fuel cycle.

After these projects get funded they will seek long term uranium contracts
@denhaagtrader Given all the announcements of plans for new reactors, I can say with complete confidence that there is not enough mine supply in the pipeline currently to allow even 2/3’s of the reactor fleet to contract for a 10 year supply agreement.
@denhaagtrader That is why the #uranium price will soon explode higher. Utilities will all be scrambling to secure 10 year supply agreements and 1/3 or more of them will not be able to get their desired coverage. This will be the ‘holy shit’ realization moment for the industry
@denhaagtrader The spot market will tighten up and many will finally acknowledge that if they want to get future supplies they will have to agree to pay up dramatically so that new mines are financed.

You can ignore the commentary about carry traders and short term spot games. It’s irrelevant
@denhaagtrader The long term supply contracting cycle is what moves the uranium market and much of the commentary I see on Twitter is from people who weren’t involved in the last uranium cycle and also don’t understand mining.
@denhaagtrader Some of the top ‘uranium experts’ out there today have little to no background in mining investing. Others have never actually invested in a uranium bull cycle before. A price explosion is imminent because the long term contracting cycle is underway and utilities are scared
@denhaagtrader For years they’ve been beating up Cameco and Kap talking about the huge NXE mine that will come on. They are starting to realize the timeline on many potential new mines is in question. Berkeley getting shut down is a perfect example.
@denhaagtrader Reliability of supply is so important for this industry. The sleepy fuel buyer crowd is about to go from being angry to scared shitless that their utility may be left out in the cold if they don’t secure a long term contract ASAP. And basic math demonstrates my point.
@denhaagtrader Their simple isn’t enough mines on deck to allow the industry to secure 10 year supply agreements. The only question is which utilities and which fuel buyers will look the most irresponsible and stupid when they have to publicly acknowledge that they didn’t contract…
@denhaagtrader And they don’t have reliability of supply for baseload power for their customers.

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Kevin Bambrough

Kevin Bambrough Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @BambroughKevin

27 Nov
The decision to pursue Private Credit Funds was one I strong opposed in 2013. Sadly, I was correct and it appears the losses from Bridging Finance may just be the tip of the iceberg opmglobal.com/opmwire/the-ni…
Read 9 tweets
25 Nov
Great thread to help understand the extreme weather cycle we are entering due to climate change. I’m certain that this cycle will continue to cause major supply chain and commodity production problems
Climate change is likely to lead to decades of strong inflation. Perhaps hyperinflation when bond holders revolt on mass.

Our governements are unable to raise yields due to their debt to gdp levels. Raising rates will bankrupt most governments.
Continually low rates and increased monetizations of the debt is what we should be expecting. The I don’t know what the current amount of debt instruments add up to today. +$130t ???
Read 9 tweets
24 Nov
@DeFiFuture1 $pdn will likely have a nice run into the ASX 200 addition that should occur in December. This will complete the easy money trade from March-April 2020’s bankruptcy fear collapse to back to one of the largest listed mining companies in Australia
@DeFiFuture1 Instead of whining about the commodity cycles maybe $cco $ccj management should have don’t something to benefit it’s shareholders. Maybe buy companies? Maybe buy enough lbs in the 20’s to satisfy their contracts until Mcarthur is back online?
@DeFiFuture1 Seems like they are more interested in criticizing ‘market pundits’ who’s made 10x returns over the last 2 years then actually doing something positive to make shareholders money? These are the sorts of people that never admit they were wrong and change with the market
Read 16 tweets
23 Nov
Climate change = record rains/floods and snowstorms. This trend will have dramatic effects on commodity production. The commodity super cycle is firmly underway reuters.com/world/americas…
The solution to fight #climatechange will increasingly be seen as a rapid build out of #nuclear power generation. #uranium will go from obscurity to become one of the worlds most important and stockpiled commodities
It’s ridiculous low cost compared to its BTU output makes it far and away the best way to stock pile energy resources for any government. It’s low price to value also makes it a great investment.
Read 4 tweets
23 Nov
Short sellers of $u.un are naked with the atm off.
The $u.un short sellers are playing a very dangerous game. Atm is locked and loaded large generalist funds and pension funds want to play. Shorting #uranium at these prices has to be one of the dumbest trades of all time
$sput $u.un will likely have some nice block trades lined up when the Atm is turned back on. Top #uranium traders say lbs will be hard to source under $55/lb. I’m expecting a fast move up to above $55/lb.
Read 7 tweets
22 Nov
Gobble gobble gobble… Image
Happy #uranium thanksgiving
Might see a $u.un short squeeze. Atm will be off for 2 days. Uranium price likely to pop and now. Feeding frenzy time…blood in the water
Read 4 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Thank you for your support!

Follow Us on Twitter!

:(