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General Market Commentary
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General Energy
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General Market Commentary
The Bulls Will Have the Last Laugh
For what seems like the fifth or sixth year in a row, the uranium market has managed to make fools of those of us calling for a new bull market.
I’m new to the club but guilty as charged… so far.
Those of you who have been fortunate enough to have made money from the last bull market know the script. You can be off by years on when the actual bull starts charging, but when it does, the amount of money made has always been worth it.
Quadruple-digit gains are not only attainable, they are expected.
Despite the multiple head fakes, I’m sticking to my call that the time to be positioned in quality uranium names is now.
Here’s why.
The World Nuclear Association (WNA) — the go-to source for nuclear industry information — recently released its Nuclear Fuel Report and it was optimistic and backed up with a lot of data.
Let’s go over some of the numbers.
The World Nuclear Association estimates global nuclear power capacities to grow through 2040 at a faster rate than at any time since 1990.
Uranium projections are up in all scenarios (for the first time in eight years), including 49% base case growth.
Mine production and uranium requirements were 139 million pounds and 174.8 million pounds U308 in 2018.
Demand is set to grow to 195.7 million pounds by 2025, 220.6 million pounds by 2030, 247.9 million pounds by 2035, and 260 million pounds by 2040.
In the short term we know that Cameco will be buying upwards of 12 million pounds.
That is a clear trend that is easy to get behind.
On the supply side, secondary supplies are expected to decrease from 15% to 4.5% by 2040.
Three of the top ten uranium mines representing 10% of 2018 production are scheduled to close before 2030.