uranium bull market 2007

At the Same Time That Production Has Shut Down. Provide baseload energy around the clock — essential to the implementation of Electric Vehicles. On April 15, uranium was US $31.30 per pound, up over 32% in the past month. A double in the spot price of uranium, however, would result in a mere 5% increase in the cost of electricity from a nuclear power plant. www.123rf.com . Domestic wholesale electricity prices have spiked to a record high”, “the price of wholesale electricity spike from about 13 cents per kilowatt-hour in December to an unprecedented peak of more than $1 on Jan. 7.”. 6. The Greatest Uranium Bull Market is Dawning Extreme potential for price to substantially overshoot incentive pricing Mike Alkin: “In my entire 20-plus year career as an analyst, this is the best risk/reward ratio on the long-site I’ve ever seen” Doug Casey: “When the market wants into gold stocks it’s like trying to … US inventories of uranium have been drawn down 30% over the last twelve months. That explains why, in Asia alone, 57 new nuclear power plants are projected by 2015, a feverish pace. For your security you will be logged out in   minutes unless you take action. Put another way, the initial, “easy money” phase of this play is over. Uranium Bull Market. Funds such as the Uranium Participation Corporation effectively stockpile uranium, with the full intent of selling it later to the nuclear industry at substantially higher prices. Within the next 2.5 years, it is highly likely demand for uranium will outstrip supply. For example, take Germany vs. France. The perception of nuclear energy is also changing to that of a safe, reliable, necessary baseload power source that fits with an emerging ESG investing model. Read More+. So, if you need $50/lb uranium to build your project – you’re SOL (Shit Outta Luck). In response to lower prices, major uranium producers began cutting capacity over the past several years. Marin Katusa is a researcher and writer for Casey Research, publishers of the Casey Energy Speculator, one of the world’s leading monthly newsletters dedicated to uncovering junior oil, gas and uranium companies poised for significant increases in production and share appreciation.Formerly an advanced calculus instructor, Marin has applied his skills in advanced mathematics to build diagnostic resource market tools that analyze and compare hundreds of investment variables, focusing in on those that indicate investment potential and profitability. The price of uranium is measured by a metric called the "spot price" and between that time period it grew from a price of $20/lb to $135/lb. 9. what happens in 2025 when everyone tries to charge their car at 6pm? Therefore, prices have to rise to at least 50–60 $/lb, or nations like the US, with more than 20% of energy generated by nuclear reactors will leave their population without energy, i.e. With a commodities bull market in full swing, commodities-stock investors have enjoyed incredible results leveraging their favorite commodities. “We saw this in 2007 and the conditions that drove that boom are now appearing once again. Energy Metals was responsible for compiling the largest domestic uranium resource base in US history. Big fish. He has been a featured guest on hundreds of radio and TV shows, including David Letterman, Merv Griffin, Charlie Rose, Phil Donahue, Regis Philbin, NBC News, and CNN; and has been the topic of numerous features in periodicals such as Time, Forbes, People and the Washington Post. Friday, 1/12/2007 10:10 ... Profiting from the Second Phase of the Uranium Bull Market. Can you still find good value in uranium stocks? Given the long lead time required for uranium delivery, utilities have historically not let their inventories fall below the 2–3-year coverage level. Historically, they have contracted for fuel for a set period of time, stockpiling when they grew convinced that prices would be rising. The last uranium bull market took place between 2004-2007. Prices for uranium have plunged from $136.00 per pound in June 2007 to $22.63 per pound at the end of the first quarter of 2017.Not even in the immediate aftermath of Fukushima did the average weekly spot price for uranium dip below $28.00 per pound. But it is the spot market that determines the direction of contract prices, and sooner or later power companies will have to pay more for uranium as spot prices rise and contracts expire. We use cookies (including third-party cookies such as Google) to remember your site preferences and to help us understand how visitors use our sites so we can improve them. Uranium mining and exploration companies saw exponential equity growth as a result. Inventory held by the world’s largest uranium producers is at rock bottom levels for the first time ever and in need of replenishment this year. First time that uranium stocks are entering a new year on the heels of one of their best performance years since the last bull market. Uncommon Leverage Is Offered By Uranium Mining Stocks. Many experts believe the market could tighten significantly next year, and potentially even go into shortage. 3. - In January 2021, Australia’s Ranger mine will closed permanently and Niger’s COMINAK mine will close in March. And make no mistake, finding an economic uranium deposit, then bringing it to market is a Herculean task – far harder and more complex than, say, a gold or silver deposit, and even those are challenging in the extreme. Uranium’s first bull market was driven primarily by the nuclear arms race between the US and the Soviet Union. Caution is the keyword. Really rough.. We keep hearing – and being promised – that the uranium bull market’s “finally approaching” – only to watch uranium equities sink deeper into the red.. The uranium market is burning through excess uranium supply, mostly coming from the spot market. Uranium investors enjoyed spectacular returns. Email. Both of the world’s 2 largest uranium mines are under care and maintenance, resulting in zero lbs being produced in Canada as we enter 2021. If you think platinum has been a frustrating commodity to invest in, you should look at the uranium price chart. As the market matures and investors become more informed about uranium, the pretenders will be exposed and the contenders, those working hard to prove-up economic deposits, will be rewarded. 11. To understand where the spot price is headed you first have to understand the purchasers and their roles. https://www.urnmetf.com/posts/supply-constraints-may-drive-uranium. The reason is that the amount of uranium used in creating nuclear power makes it a relatively minor component in the overall cost. This is ready for a correction; commodities have never been cheaper relative to equities. In sum, uranium is still cheap by any measure, including: what the market is willing (and able) to pay, prior highs and supply/demand ratios. For these countries, nuclear is not just an option, but an imperative. But – finally – I do believe that the fundamentals for the uranium market have changed. Uranium traded at about $15–$20/kg since the late 1980s due to a 10-year secular bear market, with a 2001 low of just over $10/kg. Uranium; Uranium: A bull market is under way. This chart is from Paladin Energy during the previous uranium bull market. Consequently, it is hard to overly stress the importance of investing with a proven management team; of the nearly 400 uranium companies fighting over your investment dollars, only a handful actually are worthy. Daily news emailGo to 'communications settings'. There are no potential section 232 actions targeting uranium imports and no sanctions likely against UUN participants (Russia, China, UK, Germany, France) in the JCPOA Iran Nuclear deal. The last bull market saw the price of uranium skyrocket on mine floods and other events that created the ‘fear’ of a supply deficit on the horizon, at a time when the US-Russia Megatons to Megawatts program was still continuing to supply 20m lbs per year to US nuclear utilities, a program that continued until 2021 as the world’s largest virtual uranium mine. Despite its massive efforts towards renewability, it is one of the worst carbon emitting countries in Europe. Now it costs a little more than $20. His firm, Casey Research, LLC., publishes a variety of newsletters and web sites with a combined weekly audience in excess of 200,000, largely high net worth investors with an interest in resource development and international real estate. Uranium has been in a decade long bear market now (with the last bull markets coming in 2007 and 2011), which started after the Fukushima reactor meltdown and the subsequent closing of more nuclear reactors in Japan and around the world. The ‘electrification of everything’ from cars, buses, trucks and trains to major industry is the new global target. When the fundamentals of uranium first caught my eye back in 1998, says Doug Casey, it was a contrarian’s dream... AT THE TIME it was, to my thinking at least, the proverbial manna, an ultra-clean, ultra-safe, ultra-efficient and virtually unlimited source of mass energy, yet due to environmental hysteria was viscerally and universally despised. 1. If you truly want to cut carbon-emission in the atmosphere, the one way to do it and that’s via nuclear. com | ISBN: 9780977828500 | Kostenloser Versand für alle Bücher mit Versand und Verkauf duch Amazon. 14. Cleary has a decidedly bullish outlook for many hard commodities this year. Profiting from the Second Phase of the Uranium Bull Market. Please Note: All articles published here are to inform your thinking, not lead it. Currently there are many of the best resource companies available at incredible valuations. As such, utilities may need to start entering the market to secure more uranium, even before increases to nuclear generation capacity. World’s largest producer Kazatomprom is now also a spot buyer, as is French Orano given that heir Canadian mills are suspended and their Cominak mine in Africa is heading for closure in March. The case for a 2021 uranium bull market. Speaking of prior highs, in inflation adjusted terms, the price of uranium has been as much as 70% higher than it is today, a price level we see being taken out in this cycle. More mine shutdowns anticipated over next 5–10 years, depressed uranium prices have resulted in a significant decline in investment in exploration which is impacting development of potential new mines. Until relatively recently, there has been only one way to profit from this opportunity; by investing in companies involved in uranium production, processing or exploration. If, however, you are looking at getting (much) more bang for your uranium buck, then you’ll want to look to get positioned in a portfolio of carefully selected junior uranium stocks. Kazatomprom no longer sells any lbs into the spot market and Orano’s supply from Canada and Niger is at a record low level, pushing nuclear utilities to secure new long term contracts with producers rather than entering into shorter term contracts with carry traders. To agree to our use of cookies, click 'Accept' or choose 'Options' to set your preferences by cookie type. First time that nuclear is being viewed as the ideal carbon free high-temperature power source to produce clear hydrogen fuel. France currently emits 71g of CO2 eq/kWh, while Germany emits 441g. The deficit, or the difference between what they are buying and the amount they need to produce nuclear energy, has been filled by the drawdown of existing inventories. Uranium prices have entered a bull market following a big hit to supply. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. The market is steadily growing, with new reactors coming online in over a dozen countries. The current capacity, mostly coming from the largest four uranium producers, will not be enough to cover future demand requirements. For more information, see our cookie policy. Scott Wright August 3, 2007 3391 Words . Remember this when the bull market comes and 200 new uranium explorers are formed. Including, I am happy to say, my subscribers and I have made a lot of money (click here to learn more...). 13. Thus, most uranium miners have placed their mines on care and maintenance ($PDN.AX, $CCJ, etc…). Goal is to ensure at least 2 US uranium mining companies remain active and viable during this time when the commodity price of U3O8 is half the cost of production. 8. That deficit largely explains why uranium has skyrocketed in recent years, moving from just over $7 in January of 2001, to over $72 today. A necessary doubling of the U3O8 commodity price is yet to come. Higher electricity prices, no net carbon emissions reductions and rolling blackouts have demonstrated how ‘renewables’ are not able to fulfill their early promise. If, however, you pick your investments closely, there is a lot of upside remaining in the uranium bull market. While it is hard to find one that has not already had extreme appreciation, look for “early mover” companies – those which were actively acquiring projects before uranium became the flavor-of-the-day. This is the URA ETF containing a basket of uranium stocks, so I like to use this to analyze the uranium sector. Note: Much of this deals with technical analysis requiring some understanding of support and resistance, and divergence is necessary and chart patterns. Subscribe for Email Updates. Next Year’s Bull. It’s an important role, because higher prices provide the incentive for companies to navigate the many geological, engineering and, most importantly, political challenges required to bring a new deposit to market, a process conservatively estimated to take between 10 and 20 years. Investing in the best uranium miners offers contrarian investors enormous leverage to the price of uranium. Is the big up-move in uranium prices over? They are most likely to be sitting on the most prospective concessions, in the best geological and political settings. First time that Cameco, the world’s 2nd largest producer, has begun a new year with every one of its uranium mines in Canada shut down. A surprising number of companies now claiming uranium expertise have little to no on-staff experience with this specialized metal. Thus, utilities will search for supply from smaller producers. Before the recent mania, back in October of 1998, Doug Casey was a lone voice in the woods when he issued a 16-page special report for subscribers detailing the reasons uranium was a screaming buy. Power outages in Cali due to unreliable renewable energy sources of wind and solar will be amplified by the implementation of laws banning the use of gas vehicles… i.e. However, during these hard times for the energy markets, the uranium prices started a strong bull run. So what is driving the higher uranium prices? As a result, many of these contracts will begin expiring next year, resulting in large, uncovered uranium demand. Lastly, Justin outlines what to look for in a responsible uranium producer and … First time in decades that there is an emerging surge in acceptance of nuclear of nuclear energy as necessary to achieve zero carbon emissions goals, with countries like the Netherlands looking to add more capacity after conducting studies showing nuclear is safer and cheaper than variable renewable energy. 7. The fact is most will never go into production. However, no major contracting activity has occurred since the Fukushima incident in 2011. California’s recent rolling blackouts. Security of supply is a top priority of utilities (whose inventories are estimated to be around 2,5 years’ worth of supply, when the guideline is to never let it drop below 2–3 years given the long time it takes to enrich and deliver the fuel to the reactors). - China’s CGN announced their buying of 49% interest in 2 big uranium mines from Kazatomprom taking out 3.5 mibs/year from the market. We use cookies to remember your site preferences, record your referrer and improve the performance of our site. Posted by 1 month ago. Gold Price Hits 8-Month Low as Real Rates Jump, Inflation Forecasts Fall from 6-Year High, Diversification: Gold as investment insurance, Green Energy: Platinum Key to New 'Hydrogen Catapult', 2021 Gold Price to Rise 11.5%: LBMA Forecast, 'Cut Bullion Duty to Cut Smuggling': India's Gold Industry. 3. If you’re looking strictly to ride the rising tide, stick with a fund such as the Uranium Participation Corporation, as that will appreciate pretty much 1:1 with the spot price, less holding and management fees, of course. 4. That is the reward for being early into a trend. Investor focus is back on the Uranium market and Baselode offers excellent exposure to the upcoming Uranium Bull Market. Even mines in care and maintenance could take around 18 months to return to full production. December 22, 2020. A new ‘nuclear renaissance’ is beginning to take shape on pandemic recovery spending to boost clean energy. The last uranium bull market brought patient investors returns of up to 10,000%! These organizations have served to provide a baseline of support for the spot price of uranium between buying cycles. And commodities-stocks’ performances have vastly exceeded the impressive double of the major market indices over the last four years. To learn more, please see our privacy policy and our cookie policy. Latest News. Many of his readers literally made fortunes from the small universe of stocks he brought to their attention (to provide just one example, his lead recommendation, Paladin, subsequently appreciated by over 3,000%, turning $10,000 into $300,000). First time I can recall one of the leading nuclear fuel consultants UxC reporting to their subscribers that uranium is in a 57M lbs mined supply deficit, that utility and supplier inventories are “declining at a rapid rate” just as global fuel demand growth is accelerating, a clear signal that a bull market is getting underway. Learn about gold bullion coins (and costs). Please select an option below and 'Save' your preferences. After a decade in the freezer the nuclear fuel has suddenly emerged as the mining world’s top performer, up … This propelled the price of uranium to $28.70 per pound on Wednesday, up more than 20 per cent from a low in March. 2. The primary purchasers of uranium are nuclear power utilities. That short-fall was largely covered by reprocessing nuclear weapons, mostly from the former Soviet Union, but it was clear to me that that supply was finite, whereas demand was not. The uranium bull has come about due to the simple fundamentals of supply and demand, exacerbated by a global resurgence of interest in nuclear power as a mass energy solution. 10. After bottoming out around $23.90 in March 2020, prices are now up 42% at $34.05.

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