/biz/ - Business & Finance

>>58107676
>Governments and companies have a strategic stockpile of fissible material that they can release.
this is true, but it doesnt invalidate the thesis and i'd go as far as to say that it lends more creedence to it. take a look at UUUU stockpile balance sheet as an example; they are sitting on made product ready to ship because that is the point, to have reserve i mean. a case example would be back in 2021 if im not mistaken when back in january the US govt (DOE) decided to open up 1.1 billion in funding for expanding nuclear fuel reserves, among other supporting legislation, of which there was a surprisingly large number of. what im saying is, governments are stocking it for rainy days and precautionary measures for whatever they think validates them, but companies are sitting on this reserve simply because they are waiting on spot prices to go up (which they did and which has been priced in) and for demand to go up as well. thats where rising demand for china comes in for exmaple.

supply chain disturbances (notably production pipelines) are also a thing that is known to happen with nuclear energy like how Kazatomprom announced they may lag behind on this year's production due to lack of sulphuric acid, meaning other companies will come in to fill the gap by selling uranium at spot prices to them so they can fulfill their contracts.

lastly, a big upside i see is china as an emerging market with its rising nuclear fleet and the companies i pointed out all have potential to benefit from it. combine china adding to demand with rising interest in carbon free energy, im betting on demand overtaking supply pressuring prices upward, but also supply catching up to demand fast enough to make the whole play viable and also timely enough generate profits. i had a good graph for this somewhere on my phone, but i cant find it

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