Thread by @BambroughKevin

@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.