If your a fuel buyer for a #nuclear power utility and you don’t have 10 year fuel coverage you should get busy because many of you simply will not be able to contract supplies at what your superiors currently think are acceptable prices.
A price spike to at least $200/lb and sustained pricing above $150/lb is going to be required to spur investment flows into the many new mines that will be required. (As well as conversion, enrichment capacity and fuel fabrication)
As soon it will become obvious to all that there is little to no supplies to contract and the market is going to squeeze just like it did in the last cycle. You really need to ask yourself what your thinking?
Life extensions keep coming along with facility restarts but the number of new builds is going to blow away all demand forecasts. Take all the estimates you’ve been reading and toss them in the garbage. On top of that there should be serious security of supply concerns.
Some key industry players are out of their minds modelling the future based on a 2% average inflation expectation. Commodity and resource industry labour inflation is going to ramp up and blow away all expectations. The commodity boom is just starting.
Every input will cost dramatically more. Mine financing will prove difficult with out very high prices… so get ready to pay up.
There is no cheaper commodity than #uranium it has the largest current production/consumption deficit. It has the biggest demand growth forecast over the next 10-15 years
It’s also the only commodity that it’s consumer will pay nearly anything for when it’s in short supply while at the same time being relatively irrelevant to the same consumer due to it being a small input in the total cost of nuclear power
It will soon take the stage as one of the worlds most important commodities that nearly no one owns due to the tiny market cap of the #uranium producing sector. Ultimately it will become an extremely profitable must own sector where the owners of the more economic, permitted…
deposits make long term sustainable margins and deliver cashflow to their shareholders. The market cap of the industry will rise by ten fold before this market peaks. Tiny caps that hold, largest prospective land that can be proved up and permitted stand to make the most gains…
People should realize that during the #nuclear & #uranium bear markets the number of nuclear fuel buyers dramatically diminished. Just a couple years ago most were predicting a relatively bleak future for the industries. They are as wrong at the bottom as they will be at the top
Only a select few sat waiting for the last decade (post Fukushima) and nailed the bottom of the #uranium market. Few…
The current pull back in resources is purely a result of the collapse of over valued tech, meme and crypto. Along with a general correction in overvalued equities and bubble bond values. Just like the early 2000’s bubble collapse…
As soon as things stabilize and the central banksters return to supporting financials with endless liquidity (as they always will) we will find that the shortage of real goods is serious and only getting worse. Proven resources are depleting and investment in new exploration…
And production is extremely scarce. Poke around and look at capital inflows into commodity stocks now vs past boom periods. The sectors are starving for capital. We are entering the biggest commodity bull of the last 100 years as the world tried to retool for a new economy.

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More from @BambroughKevin

Sep 16
Utah…
I like it darker
Read 5 tweets
Sep 10
Artists Point, Yellowstone
Bison grazing
Read 4 tweets
Aug 11
My advice to $lot is to not rush into production and wait for $95/lb floor contracts with inflation escalators. Fuck spot #uranium based. Hold out and get paid. Escalate off $95/lb based on electricity prices above the model the utility purchaser is showing you.
#uranium producers should be demanding way more than they are. Perhaps I will rant on this over the weekend. Most Execs at major uranium companies generally have little regard for the true historical costs that went into finding, permitting, developing, and producing…
Its time to either get paid or leave ‘our’ (shareholders) uranium in the ground. These low ball operating cost related profits are a total joke and insult to long term resource investors.
Read 6 tweets
Aug 10
Another issue that brings wackos out… seems some people have been conditioned to immediately dismiss any science that points to environmental damage from humans.
I’ll some up my views on the environment by quoting the Dalia Lama. Once heard him say in an interview.

‘Too many people, nobody happy’

Seems like an sound judgement of where things could be heading.
Read 7 tweets
Aug 3
If you want to fix commodity inflation, you must encourage investment in production. Current efforts will lead to stagflation.

The interest rate hikes will hurt the poor and middle class most.
When the interest rate lead recession begins to result in job losses it will be the most vulnerable amongst us that end up unemployed. Certainly not the morons in government or the elitist central bankers.
We must consider who’s consumption these policies are designed to reduce?

Certainly not the rich.

Trying not tame inflation by killing demand is akin to cruelly punishing the poor just the same. Either way it’s the vulnerable amongst us that get hurt and get less
Read 5 tweets

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