Thread by @patrickadownes

1/ #uranium thesis update:

- We're not lacking interest, but we are lacking liquidity and funds flow, that changes quickly and typically quicker than you can position in the trade.

- When the trade gains consensus from fund managers and brokers thats when liquidity flows

2/ Right now, what were seeing is choppy markets and no real rush to buy uranium stocks, fund managers and investors interested in the trade are accumulating, but are doing so methodically and on pullbacks.

3/ Sput launch in Sep 2022 did several things, one of those was gain institutional interest & make it easier for large funds to invest in the thematic. It also fundamentally cleaned up the spot market and removed loose lbs. We've seen that in the spot price, $20>$50 a lb in <2yrs

4/ #NuclearEnergy is undeniably gaining traction globally, perhaps at the quickest pace in decades & is being driven by the energy crisis & exponential demand for clean baseload energy. At the moment there is no alternative but nuclear. Solar and wind cannot keep up. That's clear

5/ sanctions on Russian nuclear fuel would be a catalyst for significant uplift in uranium stocks, however its unlikely to occur until the west replaces the Russian fuel cycle with a Western fuel cycle. By then #Russian #sanctions will be somewhat irrelevant.

6/ The #uranium market is tight, we know this, and most investors know this. As a result, the thematic is coiled and prone to upside risk if anything happens to disrupt the supply of uranium fuel. For example a natural disaster, a political shift or anything else.

7/ This is an ideal scenario to be in and there are few, if any commodities with the same fundamentals at play right now and so coiled to upside risk.

It's why I remain invested and why I, along with many others beleive a surge in spot price could come sooner than we think.

8/ We need only look at the invasion of #Ukraine early last year, which saw #uranium spot price surge over 10 dollars in quick fashion. The spot market can and does move when utilities panic. Or when investors panic buy.