Sound & Resilient

😱US markets may have had their worst selloff in over 18 months today🤮🚽 but Spot #Uranium didn't even bat an eye👁️ as the extremely bullish #Nuclear fundamentals didn't change today💪⚛️⛏️🏋️‍♂️ nor did Spot #U3O8 at $91.88 for @Numerco and $91.75 for US @UraniumMarkets 👊🤠🐂

By the way... if U are looking for a signal to confirm that we are pretty much at the bottom of this #Uranium sector ditch♈️⚛️⛏️👀 then U can add to the sideways trading action today the fact that I've picked up about 800 new followers in the past 10 days.⬆️👾 Clearly there is growing interest in this deeply oversold sector🤑 with investors getting ready to jump on board when the U-train finally pulls out of Death Valley station.🏜️🚉 Be ready!🤠🐂

TL;DR?🙄 The fundamental #Uranium #mining #stocks #investing thesis is much stronger & far more bullish now, with U stocks at 52-week lows, than it was in February when they were at 52-week highs! 👉The Long-term #U3O8 price, the key parameter used by analysts to calculate the economic value of a company's Uranium resources & mine projects, is Up +10% to a new all-time record high of $98. 👉Global #Nuclear commitments have risen +7.5% to 943GW and the pace of that growth is accelerating. 👉Uranium miners are missing their production targets. Global investment banks now forecast a deep structural supply deficit growing to 45 Million lbs per year by 2035. 👉The deep U stocks selloff has been for technical, not fundamental, reasons due to the way big investment houses group their stocks & ETF holdings into thematic baskets, putting U names in their AI and Metals & Mining baskets which they've been dumping since the launch of the war on Iran. 👉Now that those baskets are getting empty, and they hold huge amounts of cash, the U sector could see explosive upside when they rebuy U stocks, amplified by the high volume of shorts that need to cover. DYOR and invest accordingly!🤠🐂

Dual-flush action led to volatile #Uranium #stocks today🪠with half floating up after first market flush🇺🇸🇨🇦⤵️🚽🛟⤴️ then most drowned on 2nd flush⏬🚽🆘 as risk-off traders dumped #AI tech, #metals & #mining baskets🧺🤖💻⛏️🪙⤵️🗑️ ignoring U's incredible #Nuclear tailwinds!🌀⚛️🙈

Holy Cow!🐮 Hold on to your hats folks!🌀🎩 Spot #Uranium is continuing to rise in after-hours trading📈⚛️🛢️☢️ with #Nuclear fuel brokers @Numerco now UP +75c to $90.63/lb #U3O8 ⤴️ as bids & asks keep heading higher after a 100,000 lb deal was concluded at $90.50 🧾🤠🐂🌊🏄

Hey there #Uranium peeps!👋 When market noise and a severe unwarranted U #stocks sell-off📉 have investors questioning their investment thesis💰⚛️⛽️🐂😟 even as they see a non-stop torrent of bullish news about the biggest boom in #Nuclear power since the 1980s🌏⏫⚛️🏗️👷 while the production of the required uranium fuel supply continues to struggle⛏️🏭🧑‍🏭🐌 it's clearly time to review the first principles that are creating the set-up for what may be the most spectacular commodity bull run in history.🚀🌜🌟 🧑‍🏫Up until a few short years ago at the UN's COP28 Climate Change Conference in December 2023, when Nuclear power was formally recognized for the very first time in a UN climate summit agreement as a key solution to reduce greenhouse gas emissions and reach net-zero by 2050, nations around the world were planning to gradually phase out their use of Nuclear power.☹️ Many countries were planning to close reactors at the end of their licensed operating life or, like Germany, aggressively shut them down for no rational reason with failed expectations of running a modern industrial economy on intermittent wind & solar power. 🤪 However, the outlook for Nuclear power changed almost overnight!😃 38 nations have now signed on to a pledge to TRIPLE global Nuclear power capacity by 2050, working together to develop an achievable plan to expand Nuclear from around 400 Gigawatts to 1,200 Gigawatts over the next 25 years.3⃣✖️⚛️🏗️👷🌏 Countries like South Korea, for example, have completely reversed course from a planned total phase-out to a full-on Nuclear Renaissance, discarding shutdown plans in favour of life-extending existing reactors, building new ones and embracing the move towards mass-produced, factory built Small Modular Reactors (SMR) as the ultimate solution to provide both 24/7 carbon-free electricity and industrial heat which can be co-located with large scale manufacturing and processing plants.⚡️⚛️🏭🔥 SMRs provide the flexibility of being grid-connected or operating standalone to power remote communities, industry, mines and power-hungry data centers. Nuclear's 'Henry Ford moment' approaches!⚛️🏭🧑‍🏭 All around the world now we are seeing country after country shelving their phase-out plans and instead commit to upgrading & extending their Nuclear power plants to operate for as long as 100 years, more than double their initial design life of 40 years!🧓 🇨🇳China has taken the lead in developing the reactor supply chains and workforce needed to build a large fleet of identical reactors in cookie-cutter fashion, with build times now dropping to just over 5 years per reactor, today constructing 38 new reactors all at the same time, which is nearly half of the record 80 reactors now under construction worldwide.😲 🇮🇳India has been watching China's huge expansion program with envy and have now launched their own Nuclear resurgence with a plan in motion to increase capacity 12-fold to 100 Gigawatts by 2047 with a mix of indigenous designed reactors and SMRs. The growth trajectory for Nuclear power is truly mind-blowing!🤯 But the tailwinds for Nuclear power and uranium demand continue to mount!🌀⚛️🌊🏄 🇷🇺Russia's February 2022 invasion of Ukraine caused many European and western nations to question the state of their energy security and their overreliance on Russian uranium, oil & gas supplies.😨 Many have now pivoted away from Russia, have moved to expand the use of Nuclear power for stable 24/7 energy security, and in the US & Europe invest in strategic expansion of uranium conversion & enrichment to replace what has for decades been provided by Russia. The US has relied on Russia to supply around 20% of its enriched uranium fuel. That dependence, by law, stops at the end of 2027. Then Artificial Intelligence stepped up to the plate.⚾️🤖 AI computer systems cannot operate on intermittent power! They need guaranteed 24/7 "always on" electricity for their data centers and associated cooling systems. Big tech companies are also cognizant of the need to avoid real or perceived increases in greenhouse gases and air pollution stemming from this AI revolution, so are making major investments and big bets on clean 24/7 carbon-free Nuclear as their best long-term power source, with natgas as a temporary bridge. Over the past year we've seen a growing list of big tech companies announce Nuclear power purchase agreements and plans to fund reactor uprates and new builds. This added tailwind seemed to come out of nowhere, but that's all it is - an add-on to an already emerging global Nuclear Renaissance!🌀🌊🏄 🪖Then came Trump's US war on Iran, upending global oil, gas, sulphur, and other vital commodity markets, sending the world into another energy crisis. The war on Iran has lit yet another fire under the global push to get off fossil fuels and achieve energy security by embracing safe 24/7 reliable carbon-free power for both clean electricity and emissions-free industrial heat. Many nations are taking a second look at Nuclear power, which, compared to power generation with diesel oil & natgas, is nearly immune to short term fuel supply disruptions. Nuclear reactors have several years of uranium fuel on-site, and the cost of that fuel is small compared to overall operating costs. Just as happened in the 1970s, the 2026 Iran War has triggered a global energy crisis that is driving an even more powerful move to embrace and expand the use of Nuclear power to provide long-term energy security.🔒⚛️🏗️👷 Now comes the other side of the equation: uranium supply.⛏️⛽️ The Uranium mining industry never saw all these tailwinds for Nuclear energy on the horizon. Investment in new mines was delayed or outright cancelled. Mines were shut down and put into care & maintenance as the price of uranium bottomed to under $18 in 2016. Investment dried up and continues to be insufficient to bring enough new supply online. Shuttered mines have slowly been restarting, with never-ending challenges causing setback after setback, but very little new greenfield mine construction is taking place so far.🦥 As Uranium sector investing guru Mike Alkin has been saying for years, supply/demand is really just a math problem.🧮 China is accelerating its Nuclear expansion by cutting the reactor build time down to 5 years per reactor, building 38 reactors at the same time, but it takes on average about 15 to 20 years to bring a new uranium mine into production to supply the required fuel!😲 A lack of sufficient investment in exploration & development, delayed financing & construction of new mines, soaring operating costs & borrowing rates, and a long period of inventory drawdown by Nuclear utilities while exercising flexing options in existing supply contracts instead of investing in building new mines, has led to a deep structural supply deficit that is expected to continue to grow in the decade ahead.↕️🗜️ The stage is set🎭 and Cameco's Grant Isaac told us on the company's Q2 Results Conference Call precisely why we are now on the cusp of a coming Uranium bull market for the history books!⚛️⛏️🐂🚀🌜 On the call Grant said: "I think what the most notable point to make is we are still not at replacement rate demand across the industry. We still don't have utilities coming forward and collectively buying at a volume that replaces what they consume under existing contracts! And yet we find ourselves back into a mid-90s long-term uranium price on its way to 3 digits likely. And that's in the absence of replacement rate demand. And as I remind folks, we've never been at this kind of uranium price [$97] on the front end of a uranium contracting cycle. We've only ever found ourselves at these prices on the back end." He reminded us of 2 important factors: 1. Nuclear utilities normally sign a series of 4 different contracts to order reactor fuel🧾✍️⚛️🏭 starting with the fabrication of fuel assemblies filled with enriched uranium to be loaded into reactors 1⃣ then working backwards thru SWU for enrichment of UF6 2⃣ and Conversion of drummed U3O8 into UF6 3⃣ then finally, last of all, they sign contracts with miners to supply the required drums of mined U3O8 yellow cake 4⃣ the last link in the contracts chain.🛢️☢️🔗 ⚠️ Prices for Conversion and enrichment SWU have already skyrocketed 200-300% to all-time highs, indicating that utilities have been squeezing the conversion & enrichment markets signing a large volume of new service contracts🗜️🛒 but they haven't yet signed sufficient contracts for the mined U3O8 that must be converted & enriched!🚨 This is most evident by looking at long-term contracting volumes.📊 For the past 13 years, utilities on average globally have only been signing uranium supply contracts for little more than half the volume of uranium they have been consuming in reactors each year! Contracting has been far below what is referred to as "replacement rate" due to utilities being focused primarily on securing the most important contracts for fabrication, SWU and Conversion, putting off signing contracts for mined U3O8 until the last minute.😴 Hence, there is a massive wave of contracting volume yet to arrive at mined U3O8, the last domino to fall in the contracts chain.🌊🛢️☢️🛒 2. Grant also reminded investors that the published long-term Uranium price has now reached a new all-time record high of $97/lb, higher than the $95 peak during the last 2006/2007 bull market, but replacement rate contracting by utilities hasn't even started yet! 😲 The coming "replacement rate" contracting cycle is going to start off at a higher long-term price than was ever achieved at the back-end months of the last uranium bull market! Once fuel buyers jump back into signing a high volume of new U3O8 supply contracts, the Long-term and Spot prices will go far far higher from today's already elevated base prices!⏫💲 In the first 3 years of the last Uranium bull market the long-term price rose from ~$25 in 2005 to a peak of $95 in 2007/2008, a near 4-fold price jump. Meanwhile, Spot U3O8 went from ~$20 to a peak of $136 in 2007, a near 7-fold price run! But wait!✋ There's more... 😄 As Grant said, 'replacement rate' only deals with replacing the uranium fuel that is being consumed by today's operating reactors under existing contracts signed years ago!🌎⚛️⛽️ Additional demand coming from ~80 new reactors under construction today (which nominally load 3 years worth of uranium fuel at start-up), shuttered plants like Palisades, Three Mile Island, Duane Arnold and others worldwide being restarted, as well as the growing number of reactors now unexpectedly receiving new multi-decade life extensions, will drive the required amount of fuel purchasing to a level far above today's replacement rate in order to secure the much higher quantities of fuel that will be required⬆️🛢️☢️🛒😊 which Bloomberg recently calculated to be a +44% increase of 163 Gigawatts😲 adding around 80 Million lbs PER YEAR of new uranium demand by 2036!😲 In spite of this irrational U sector pullback, VERY exciting times are still ahead for U!😃 IMHO, this recent deep and unwarranted sell-off is, as Lobo Tiggre puts it, a "huge mistake" by investors, especially those with tunnel vision looking only at the small AI portion of a much bigger global Nuclear expansion vs lagging uranium supply situation.🙈 If U have the cash to deploy, now is certainly an opportune time to consider putting that cash to work ahead of the imminent coming wave of replacement-rate contracting that will drive U prices far higher.🌊🏄 Good luck with your research & investments!☘️🌈💰It's your money... invest it wisely!🦉🤠🐂