Uranium stocks continue to perform well. Deals are now being announced.
Nuclear is getting a nod from the Biden administration. Even the Fukushima reactors are set to restart.
Gerardo and I discuss it below.
—Nick
Gerardo Del Real: Uranium is seeing positive sentiment, is back in favor, and I am urging everybody to make a list, check it twice, and start scratching off some names.
We have Fission Uranium (TSX: FCU)(OTC: FCUUF) at 52-week highs. We have companies like Uranium Energy Corp. (NYSE: UEC) doing really well. Azarga Uranium (TSX: AZZ)(OTC: AZZUF) finally caught a bid and is a penny shy of its 52-week high.
The big news last week, of course, was Sprott basically launching a uranium ETF by taking over Uranium Participation (TSX: U)(OTC: URPTF). That is the simplest way to explain it, right? And I think this has massive, massive implications for the spot price, which, as you and I know, has been relatively flat despite the fact that the Fissions of the world, the Azargas, the UECs, the URCs... all these companies have had a phenomenal 2021.
Sprott Asset Management taking over management of Uranium Participation Corp. is a big, big deal. I think that Sprott's 200,000-plus investors are absolutely going to be looking at this and looking at it as a way to directly purchase physical pounds without having to take delivery, which Sprott will do.
And kudos to Sprott. They've done this with gold. They've done it with silver. They're going to seek a dual listing in Canada and the U.S.
If you thought that the Reddit GameStop squeeze was fun, I think we are in for an epic, epic run in the uranium space.
Thoughts on that, Nick?
Nick Hodge: Well, we also talked about a couple of weeks ago how Dogecoin's market cap was greater than the entire uranium sector, which is responsible for supplying 10% to 20% of baseload global clean energy electricity needs. And so, obviously, much value to be had in the uranium sector.
And you nailed it. I mean, there's people who are waiting for the spot price to rise, and there are people who are sitting up several times on companies like those you mentioned and more, like Skyharbour Resources (TSX-V: SYH)(OTC: SYHBF).
So I think you've got uranium coming into focus as a clean metal. We gave a presentation on this a few weeks ago. It was called, “The Green Metal Inflation Is On,” And we included uranium.
Biden gave a speech last week in which he talked about building wind turbines in Pittsburgh. He asked why we can't have domestic control of electric vehicles and be world leaders as opposed to China.
And the answer is that America can. But it’s going to take significant investment in the raw materials supply chains needed to manufacture those clean energy technologies.
We always talk a lot about the lithium and the rare earths and the copper... but you know what?
You don't want to be burning 25% or 30% coal to power those electric cars.
That's where uranium comes into play. Specifically in the United States, you have a new nuclear power plant coming online in Georgia later this year.
And the Biden administration is openly including new nuclear technologies in its bills and plans, most recently signalling that it would support subsidies to keep nuclear facilities from closing.
Gerardo Del Real: Agreed. Early days? I think so, clearly. I spoke with Scott Melbye this week of Uranium Royalty Corp. (NASDAQ: UROY), and I asked him the same question. I said, "Early days for uranium... or did people miss it?"
And he said, "No, they didn’t miss it. If we're using the baseball analogy, this is the first inning. Maybe the bottom of the first, but it's definitely the first inning."
Would you agree with that assessment?
Nick Hodge: I think if you pull back the charts from Fukushima. You have to.
I mean, the sector lost 90% of its value, and so has to go up many more times to get back where it was.
You have to go back to the spot price, because at $30 per pound you're not even close to a price where the industry can sustain itself in terms of bringing new supply online at a reasonable price. So that all still has to play out.
And it might prove symbolic that the path for the Fukushima reactors to restart was just cleared.
Gerardo Del Real: Agreed.
Call it like you see it,
Nick Hodge,
Publisher, Resource Stock Digest
Nick Hodge is the co-owner and publisher of Resource Stock Digest. He's also the founder and editor of Hodge Family Office, Family Office Advantage, and Foundational Profits . He specializes in private placements and speculations in early stage ventures, and has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world.
