Justin Huhn – Comprehensive Update On The Uranium And Nuclear Fuel Sector
Justin Huhn, Founder and Publisher of the Uranium Insider, joins us to provides a comprehensive macro update on the uranium and nuclear fuel sector, after having a very good year of higher u308 prices surging over $80 per pound, and very nice moves higher in many of the more established uranium mining stocks.
On the demand side of the market, we continue to see big commitments to increasing their nuclear energy build out from many countries coming out of the ongoing COP 28 conference, and we note many surprising countries, like Sweden, South Africa, Ghana, Egypt, Morroco, and Uganda making commitments to build new reactors. Additionally we see both lifetime extensions on existing plants in the west, and Chinese reactor builds in the east as key demand drivers. With regards to the contracting cycle and term pricing, we have seen more transactions over the last year which demonstrates that the larger players are getting into position for a more active phase of the uranium pricing cycle.
Next we shift over to the supply side of the sector, and the increased interest in companies that can readily produce uranium, which is mostly isolated to a few of the largest companies like Cameco, Orano, and Kazatomprom, and then some of the smaller US-based ISR producers like Energy Fuels (UUUU) (EFR), enCore Energy (EU) (ENCUF), Ur-Energy (URE) (URG), Peninsula Energy (PEN.AX) (PENMF), and Uranium Energy Corp (UEC). Justin discusses the size of some of the new reactors being built and the initial fuel load many will need that is 2-3 times the normal operating fuel, and there just won’t be enough supply coming online to fuel all the 62 reactors under construction and the existing 436 global reactors, without some larger projects coming online.
We discussed the significance of the NexGen Energy’s (NXE) Arrow deposit, the Phoenix Project from Denison Mines (DML) (DNN), and Global Atomic’s (GLO) (GLATF) Dasa Project as key larger projects that will need to come online to feed the growing demand, but noted that they are still years away from production coming online. This creates a very interesting supply/demand mismatch over the next 5 year window of time, and Justin unpacks how this will continue to underpin pricing for the medium to longer-term, as well as continued interest in the uranium stocks from investors.
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Thanks for that feedback LarryC. Yes, agreed, Justin is one of the most knowledgeable guys in the Uranium sector, and he is one of the main guys I personally turn to learn and get updates on the nuclear sector. We are blessed to get guests of his caliber on the KE Report to share their insights with us.
Here is a more recent longer-format interview 90 minutes with Justin and Antonio at Resource Talks that gets into the Uranium sector a bit more granularly.
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Uranium Insider Interview – Uranium Stocks, Exiting Strategies, Bear Cases w/ Justin Huhn
Resource Talks – Dec 3, 2023
Timestamps:
00:00 recap
01:00 what’s happening in the uranium spot market?
08:30 is there going to be a spike in the price of uranium?
16:00 are RFPs not getting filled?
20:30 what is the new incentive price for uranium production?
27:10 why is the long-term uranium price lagging?
29:00 are conversion & enrichment prices going down?
32:25 will the uranium spot price follow conversion prices?
38:10 what ends the uranium price run?
43:08 what uranium production is coming online soon?
49:54 what uranium stocks will perform better from here on?
53:55 what matters most for uranium stocks?
55:30 does Uranium Insider like exploration stocks?
57:55 what other criteria does Uranium Insider have?
01:00:25 when does Uranium Insider sell uranium stocks?
01:05:00 are M&A plays worth it?
01:10:00 does Uranium Insider like other stocks?
01:11:00 are SMRs dead?
01:17:10 will uranium miners get government grants eventually?
01:19:32 is the uranium price really going higher?
01:22:10 would the uranium stocks crash during a recession?
01:27:00 closing thoughts
I had a good day trading I bought some more Eastern Platinum, and a new explorer that has been having some early exploration success near Lion One in Fuji. I also met a beautiful woman who grew up in Switzerland, life is easy if you have the right looks. LOL! DT
Well done on all accounts DT.
This article came out earlier in the year, but is still relevant on the growing interest in nuclear power for African countries.
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2023 Update: Who in Africa is Ready for Nuclear Power?
Future of Energy Tech – Jacob Kincer, Jessica Lovering
https://energyforgrowth.org/article/2023-update-who-in-africa-is-ready-for-nuclear-power/
Nuclear Backers Pressure Biden To Include Industry In Hydrogen Tax Break
Nicole Jao and Timothy Gardner – Reuter – Wed, December 6, 2023
https://finance.yahoo.com/news/nuclear-backers-pressure-biden-industry-203353816.html
Hi Shad,
I deem your knowledge of the uranium sector for investment to be on a par with Justin. Your execution of that interview was off the charts for flow quality and imparted wisdom from Justin. Thank you.
I’m on my 2nd year subscribing to “Uranium Insider”. Justin’s value to a potential uranium investor is immeasurable. His description a year ago of the characters of Encore Energy’s primaries, Paul Goranson and Robert Sheriff, as exemplary convinced me to buy their stock. A few months later, he increased the recommended % in EU on his focus list of Uranium investments from 10% to 15%. He also termed EU a likely 3-5 bagger within the next 3-5 years. EU is well on its way. Thank you Justin!
Much appreciated Kevin. I’ve been investing in the Uranium space since 2011, and learned a few things along the way following the sector through the school of hard knocks. Haha!
Yes, Justin is fantastic and one of my go-to guys in the sector and I learn things from him every time I listen to him in interviews or that we chat.
As for enCore Energy – Yes, it is one of the stocks I hold in my portfolio as well, and I met with Mr. Sheriff in September at the Beaver Creek conference to get a full update on the company and came away from that meeting feeling good about my position in EU.
Ever Upward!
Justin is really on top of his U specialty……a learned a lot ! thanx for getting him on the Kereort !