Uranium Price & Equities Ready to Breakout in April?
ฝัง
- เผยแพร่เมื่อ 28 มี.ค. 2024
- Recording date: 28th March 2024
Interview with Brandon Munro, CEO of Bannerman Energy
The Compelling Investment Case for Uranium
Uranium is at an intriguing inflection point for investors. Despite recent quietness in uranium equities, the nuclear fuel's underlying fundamentals are strengthening and pointing towards a potentially sustained bull market on the horizon.
On the demand side, uranium benefits from relatively inelastic demand due to its role as an essential, unsubstitutable input for nuclear energy. The world's existing fleet of reactors requires a steady supply of uranium to operate economically, providing a dependable baseline of demand. On top of this, 62 new reactors are currently under construction globally, with many expected to come online in the next five years, driving incremental demand growth.
Longer-term, uranium demand could experience a "huge uptick" in the 5+ year timeframe according to Brandon Munro, CEO of uranium company Bannerman Energy. He cites factors such as China's plans to approve around 10 new reactors per year and the potential for small modular reactors (SMRs) to gain commercial traction. While still speculative, these demand drivers provide additional upside exposure for uranium investors.
In the face of this robust demand profile, uranium supply has become increasingly precarious. The world's largest producer, Kazakhstan, recently signalled that widely anticipated production increases in 2024-2025 are unlikely to materialise as expected. More broadly, Munro emphasizes that current global uranium production "isn't enough…to even meet existing demand," let alone future growth.
The muted supply response is compounded by long lead times for new mines. Major greenfield uranium projects have not been approved, while even promising discoveries today in productive regions like Canada's Athabasca Basin would take at least a decade to enter production. This leaves a fairly long runway for the supply deficit to potentially worsen before eventually rebalancing.
As the supply gap becomes more pressing, uranium prices could experience a significant upside. While spot prices briefly spiked last year demonstrating the market's upward potential, Munro argues this didn't truly reflect utilities being forced to compete for scarce pounds to keep reactors running. He sees scope for "sustained pricing pressure" as the shortfall comes into fuller focus, supporting "a bull market cycle that at least reflects the longevity of the very desperate bear market cycle…from 2011 until only a year or two ago."
The constructive fundamental backdrop is drawing increased investor attention. Munro reports "tens of hours" of recent conversations with institutional investors expressing "very strong views" on the uranium sector. As generalist interest returns to commodities, uranium equities are benefitting from expanded investment vehicles like ETFs and physical trusts that are acting as "a funnel" for new capital entering the space.
For investors looking to capitalize on uranium's attractive supply/demand dynamics, multiple options are available. These include investing in uranium miners, either directly or through sector ETFs, as well as gaining exposure to physical uranium through listed trusts. While the bull market is still in its early innings, establishing positions sooner rather than later may be rewarded as the full extent of the market tightness becomes clearer.
In conclusion, uranium's compelling fundamentals characterized by steady baseload demand, structural supply constraints, and rising investor awareness make a convincing case that the nuclear fuel is poised for a powerful bull cycle. As the market continues to shift from surplus to shortage, uranium prices and equities could have substantial upside in the years ahead. Investors still on the sidelines may be well-served by taking a closer look at this overlooked opportunity before it moves into the mainstream.
-
Learn more: cruxinvestor.com/categories/c...
Sign up for Crux Investor: cruxinvestor.com
![ตรงที่เดิม - ฝน พรสุดา [ต้นฉบับ :เบส ขวางหวัน]](http://i.ytimg.com/vi/c5YnbGEztI8/mqdefault.jpg)
Always nice to listen to Brandon and how he peels things off in a professional manner.
Brandon is very generous of his time. Could listen to him all day long. Thanks again Brandon.
Cheers Matt. 👍👍👍
It's like knowing your car is going to win the Daytona 500 , and asking after lap 10 "what do I do"? You double down, order popcorn, beet and three hotdogs, get comfortable in your seat, set up your sunbrella and enjoy the spectacular event as it unfolds.
Wow ! Those words are spectacular 👍
Big insto money already positioned throughout March being evidenced by numerous substantial holder notices for all the major Uranium companies. April is going to be lit 🔥🔥
Happy Easter Brandon. Bannerman going well!
I really like how you 2 interact.Brandon is very easy to listen to. A great service you both provide. Thankyou.
Glad you enjoy it!
April will see a big boom for Uranium stocks . BMN, BOE and DYL will lead the charge on the asx, and EU, ISO, SASK,and UEC on the TSX. Own these seven and you will profit beyond belief.Going forward I can’t imagine the spot holding as low as $125 unless China halves their builds and the SMRs don’t happen.
If you're right, I think also NexGen and Dennison Mines are going to run. Furthermore, I think the world overreacted to the Global Atomic situation in Niger.
Wow! Agreed! I own those 3 also. They didn’t make my top 7, but would make my top ten. Our portfolios must be similar
@@hennagaijin7856 Why not Paladin(PDN) on your list of movers?
@@user-ox7dp5md5n Unfortunately, I have not paid too much attention to Paladin. I have heard much about it, and it probably is a good stock to own. I just decided to consolidate most of my positions into the near term developers like Global, ISO, EU, NexGen, and Dennison. Outside of that, I do own some Bannerman (I like Namibia, and I like Brandon Monroe.) and some Lotus.
What is your take on Paladin? What's your incentive to own it?
@@user-ox7dp5md5n Sure, I have them also, but I see them as a known with certain potential, whereas I believe the others listed have more legs and probably bigger gains. Five years ago a commentator stated; “ It won’t be the companies like Paladin who make the big gains, it will be the companies like Bos.”
Today I am up 600% on Paladin and 1250% on Bos. Life changing profits ahead. The show has just begun.
Any chance of direct Q put to producers why - in some reasonable form- how producers can disclose their contract books metrics?
Great chat as always guys. Happy Easter to both of you.
Baseload Energy and F3 both making nice moves. I've 3x down on Uranium shares
👍
YCA share price movement seems odd. They say traders manipulate the silver price; wonder if people are now playing with physical-based YCA......
I monitor the spread of SPUT to YCA (U$) and it has been around 2.72 (ie high) for sometime which fits with the narrow NAV discount of SPUT whilst YCA has been stuck around 15%. Why ? No idea apart from tail risk of delivery of Kazatomprom deliveries perhaps. I would think arb PMs would play this spread now.
@@innocenti67no redemption mechanism to arbitrage
@@TheCoolbreeze45 indeed, but does that mean the spread should widen further ? Perhaps not.
New demand from 3x etc can be tapered as fast as it was proposed if new supply doesn't sufficiently materialize in a reasonable time period.
At present it's All narrative and until funded and ground broken ( both supply and demand) investors only can reliably see current demand which is grossly opaque on both sides of the S/D function. More transparency is needed period...
Quite the spin from Munro on why BMN isn't getting into production yet...real reason: they can't get financing yet. Utilities aren't going to pay them published term prices...those are for current producers. SO many risks building and ramping a mine...there will be a discount. BMN isn't a cheap project...they need higher prices still. Also, rIght now no producer could rely on selling any supply into the spot market. We see what a small offer did to the market recently. I would avoid any producer that hasn't have sales locked up at good prices. Until utilities start coming to the spot market for real volumes no one can any meaningful quantities into that market. Good luck out there folks.
Ok ok 🤣
Bannerman needs to get oin with an off take deal and fid.
The spot price in the $100 range was driven by speculators...to me it's not a valid indicator... $75 term is the only valid indicator
I'm so tired of hearing about the term market. Our equities, which is how we get paid, don't give a damn about the term market. Spot is the only thing that matters
I'm so tired of hearing about the term market. Our equities, which is how we get paid, don't give a damn about the term market. Spot is the only thing that matters. When the spot languishes, no matter how many term contracts are signed or how many RFPs are sent, our stock go down.
I disagree. Ninety-nine percent of us were did not experience the early 2000s market. Therefore, none of us (that 99%) has ever seen a term market come to life. We're still very early. Relying only on a spot market for direction is a huge mistake that I hope most retail investors don't make.
We get paid by the companies and they get paid (predominantly) by the term market. When they become producers admittedly but that’s the idea. When they become profitable, or visibly approach profitability, then they will/should go up in value and/or pay us dividends.
That’s the idea anyway 🤞
@@londonwiz8127 what I'm saying is, when the spot market is going up, THE SPOT MARKET MEANS EVERYTHING. Equities are going up, and analyst are talking about spot, not term market. But when the spot is going down, our equities are going down....then uranium analysts saying the spot market doesn't matter, it's just noise, the term market is still going up. But the equities don't care about that