Thread by @quakes99

1)The #Uranium #mining #stocks #investing thesis👨‍🏫 in May 2022 is now the most bullish it's been in 4 decades!🤠🐂 Here's a thread to bring you up to speed🏇 on how a record Uranium supply deficit⤵️⛏️ is colliding💥 with a global #Nuclear #Energy Renaissance.⤴️🌞🏗️⚛️ 🌊🏄‍♀️🧵4U👇2

2)Entering 2022, #Nuclear fuel consultants UxC & TradeTech estimated 200M lbs of #Uranium demand versus only 135M lbs of mined supply for a ~65M lbs deficit for many years to come.↕️ #Nuclear utilities draw down inventory & rely on ~25M lbs of Secondary Supply to fill gap⛏️👇3

3)Then to make matters worse, #Russia invaded #Ukraine🪖 turning the #Nuclear fuel market on its head.🙃 Russia's 39% of global enriched #Uranium, 27% conversion & 14% of mined U supply are a target of emerging US & EU import bans & self-sanctioning by western utilities🇷🇺⛏️⛔️👇4

4)Western pivot away from #Russia's #Uranium has triggered record-breaking spikes in UF6, Conversion & enrichment SWU prices as #Nuclear utilities scramble to find alternative supply in the west.🛒 Anti-Russia pivot cuts Secondary U Supply in half, adding to #SupplyShock😲⚛️🎇👇5

5)At same time, bans on Russian oil & gas have led to a pivot to #Nuclear, the key 24/7 #CarbonFree #energy able to mitigate a new #EnergyCrisis.🌞⚛️⚡️ UK & France now put #Nuclear at heart of their #EnergySecurity & #NetZero plans, while Belgium delays reactor closures.🤠🐂👇6

6)Suddenly, a wave of new unanticipated #Uranium demand🌊🏄‍♀️ has been added to a global #Nuclear build-out already underway to achieve #NetZero.🌞🏗️⚛️ On top of that, #SouthKorea reverses its planned nuclear phase-out while #Japan moves to accelerate restarts of its reactors.🏇👇7

7)China had already announced plans to build 150 new #Nuclear reactors by 2035, approving 6 new reactor builds in April.🌞 India has announced plans to triple its nuclear capacity, confirming 10 more builds plus 6 giant EPR reactors to be built with France. Poland too!⚛️🏗️⤴️👇8

8)Even the US is reversing its decades of #Nuclear decline by launching a $6 Billion program to halt premature reactor retirements.😲🎇🇺🇸 Anti-nuclear #California says it will apply to halt closure of its Diablo Canyon NPP as Michigan tries to save its Palisades plant too.🚨🚑👇9

9)Worldwide, plans to build mass-produced advanced Small Modular #Nuclear reactors (#SMR's) are moving into high gear.🏎️🧑‍🔬⚛️ Their #Uranium demand hasn't yet been added to demand models.😲 China, Canada, UK, US, Korea, France... over 70 designs in 18 countries today.🌞🏗️⚡️👇10

10)Global #Uranium demand is surging⤴️ but supply is in a deep structural deficit from years of under-investment.⤵️⛏️ No major new mines are coming online.🤯 Kazatomprom has capped its production at -20% thru 2023, while Cameco will only ramp up production to -41% by 2024.🐌👇11

11)Many forget too that #Uranium mines operating today are being depleted & must be replaced.😲 But with inflation driving up costs, #Uranium prices must nearly double to $80+/lb⏫ for lenders & miners to give green lights for new mines that will take many years to build.🏭🦥👇12

12)#Uranium demand is now rising at an unprecedented rate⚛️📈 and pivot away from Russia adds new "secondary demand" thru a transition by western enrichers from underfeeding to overfeeding in order to replace lost Russian enrichment, driving need for even more mined U3O8.⛏️⤴️👇13

13)#Nuclear demand⚛️ vs #Uranium supply⛏️ fundamentals are "Best Ever"🤠🐂 but a global market correction⬇️ has driven shares of high quality U #mining #stocks into deep discounts💲⤵️ completely divorced from extremely bullish fundamentals🔀 & primed for a strong rebound.📈😃☘️💰