/biz/ - Business & Finance

>>51438718
The thesis is this: There's not enough uranium being mined to meet current demand, let alone future demand. The world consumes about 180million pounds of uranium. The world produces 140 million pounds. We're already in a deep supply deficit. In addition, macro/political events have sparked a reevaluation of nuclear energys role in the future. Japan has decided to turn all of there nuclear plants on. Germany has been trying to phase them out, but during this energy crisis is leaving 2 of them on standby. California and Minnesota are keeping Diablo Canyon and Palisades online respectively. China is building 150 Reactors. The UK is building Reactors.The uranium thesis doesn't even need restarts, or Russian sanctions, or a nuclear rennaissance. The median time to build an old reactor is 7 years, and SMRs: a new easier to deploy reactor is 4 years. The price of uranium is around 50$ today. But it costs around 60-70$ (and now increasingly 80$due to inflation and supply chain issues) to mine it. In two previous bull runs, the price went to 140$+. The uranium sector is tiny, there's about 40 companies that are serious players. The companies are not incentivize to spend money to build mines and mine it. Companies make money signing long term contracts with NPP utilities, but eventually there all mineable inventory will be spoken for, and utiltiirws will have to bid up the price in hopes of powering their plants. A power plant that doesn't supply electricity is an expensive paper weight, but luckily uranium is a tiny portion of their overall budget(around 5-10%). A significant part of the uranium fuel cycle is also russian, and sanctions would require growing it here. The entire sectors worth less than 40 billion. Exxon is worth 400 billion just for comparison. Nuclear supplies 12% of the worlds electricity, thus the sector is exceptionally undervalued ever since Fukushima tanked nuclear sentiment. Luckily the world is waking up, most ppl are pro nuclear today.

>>51341235
>>51341256
>>51341268
Nigga we going to 50$