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Uranium Bull Market

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  • Registered Users Posts: 188 ✭✭kellyj77


    Another day of large gains across the board. Spot over 40 dollars.



  • Registered Users Posts: 188 ✭✭kellyj77


    Bit of a sell off today. Assume its profit taking from the last 2 weeks.



  • Registered Users Posts: 1,156 ✭✭✭RainInSummer


    Had to cool off eventually. The thesis is still as solid as ever though. Actually more so if I think about it!



  • Registered Users Posts: 3,765 ✭✭✭One More Toy


    Where are you all trading uranium might I ask?



  • Registered Users Posts: 188 ✭✭kellyj77


    Personally I've been buying uranium miners on degiro



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  • Registered Users Posts: 3,765 ✭✭✭One More Toy




  • Registered Users Posts: 188 ✭✭kellyj77


    I listed all those I was invested in a few posts up



  • Registered Users Posts: 188 ✭✭kellyj77




  • Registered Users Posts: 188 ✭✭kellyj77


    Rains are listed there. A good few consistent with mine



  • Registered Users Posts: 188 ✭✭kellyj77


    Bannerman and Penn are the next two i was looking to get into next pay day



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  • Registered Users Posts: 1,156 ✭✭✭RainInSummer


    I bought Aura Energy today. Upcoming inclusion in ETFs and (hopefully) relisting on the ASX should cause a nice little run on them.



  • Registered Users Posts: 1,156 ✭✭✭RainInSummer


    IBKR for me. I abandoned ship after Degiro only allowed sell orders on my uranium positions. I hadn't finished building them so that was a hard no thanks.

    Degiro tend to list ones on Euro exchanges which can be a bit thinner traded than the ASX, TSX or NY exchanges. Or at least they did 6 months back.



  • Registered Users Posts: 188 ✭✭kellyj77


    Where do you source your info rain? I primarily get it from material linked on twitter and reddit uraniumsqueeze forum



  • Registered Users Posts: 1,156 ✭✭✭RainInSummer


    I'm on Discord mainly. One private, one public.

    Public: https://uraniumequities.com/contact-us/

    I dip in to Reddit occasionally but I'm not active there.



  • Registered Users Posts: 2,313 ✭✭✭p to the e


    Nuclear power companies are facing competition for supplies of uranium from financial investors, who are betting on sharply higher prices and demand for the radioactive material used to fuel reactors.

    The price of raw uranium, known as yellowcake, has risen to its highest level since 2014, driven by a newly launched investment trust run by Canadian asset manager Sprott.

    Investors are betting that nuclear power will be a key part of the move away from fossil fuels and that a lack of new uranium mines will mean the price has to move higher.

    The Sprott Physical Uranium Trust has snapped up around 6m pounds of physical uranium, worth around $240m, since launching on July 19, helping to push uranium prices to over $40 per pound, up from $30 at the start of the year. Global mine supply is expected to be around 125m pounds in 2021.

    Its aggressive buying will put pressure on utilities who need to secure supplies of the commodity for electricity generation. It also comes as China is planning a big increase to its nuclear power capacity over the next decade. Added to the holdings of a fund it acquired, Sprott currently holds 24m pounds of uranium, worth around $1bn, in the form of yellowcake.

    Other financial players have also been buying the commodity in a bet that its price will rise. Yellow Cake Plc, a vehicle listed in London in 2018, holds around 16m pounds of uranium.

    “This has been a key driver of the 30 per cent increase in the price of the metal in 2021,” Nick Lawson, chief executive at brokerage Ocean Wall, said.

    Demand for uranium is expected to climb from around 162m pounds this year to 206m pounds in 2030 — and even further to 292m pounds in 2040 — according to the World Nuclear Association, largely driven by increased power generation in China as Beijing seeks to cut emissions.

    At the same time, the supply of uranium is set to fall 15 per cent by 2025 and by 50 per cent by 2030 due to a lack of investment in new mines.

    “Financial players are clearly accelerating price discovery, but this would not be occurring if there was not a fundamental and substantial deficit,” analysts at Canaccord Genuity said.

    The pandemic has also disrupted supply from some of the largest mining operations in Canada and Kazakhstan. In December, Canada’s Cameco temporarily suspended production at its Cigar Lake mine due to a shortage of workers, before restarting it in April.

    “This is against a backdrop of growing energy demand as the economy recovery and a focus on carbon free generation with nuclear being a key element of non-fossil fuel baseload generation,” said Jonathan Guy, analyst at Berenberg.

    Shares in Cameco have risen by 70 per cent year-to-date on the Toronto Stock Exchange. Overnight, shares in Japanese utility companies rose sharply after Fumio Kishida, a leading contender to become the country’s next prime minister, said restarting nuclear power plants was necessary to achieve the country’s net zero goals. Nuclear power was shut down in Japan after the Fukushima Daiichi disaster in 2011 and has only slowly been restored.

    Last month, the Sprott fund announced it would issue $300m worth of new shares, which would be backed by new purchases of physical uranium.

    Energy is the world’s indispensable business and Energy Source is its newsletter. Every Tuesday and Thursday, direct to your inbox, Energy Source brings you essential news, forward-thinking analysis and insider intelligence. Sign up here.

    Currently listed on the Toronto Stock Exchange, the Sprott uranium trust is also looking to list on the New York Stock Exchange next year, which could spur further purchases, according to Canaccord.

    The Sprott trust buys uranium through WMC Energy, which stores it in Canada, the US, and France. Sprott receives a management fee of 0.35 per cent, as well as a commission of 1 per cent on the gross value or any purchases or sales of uranium.

    If investors keep buying uranium, analysts expect utility companies will come under pressure to replace long-term supply agreements before they expire.

    At the moment, long-term contracts cover 98 per cent of the uranium needed by US utility companies. But that figure drops to 84 per cent next year, and 55 per cent by 2025, according to Yellow Cake.

    “There are now no meaningful volumes available,” said Nick Clarke, founder at Curzon Uranium. “Utilities will be forced to re-evaluate their procurement strategies.”



  • Registered Users Posts: 188 ✭✭kellyj77


    Sprott raised its ATM limit facility from $300m to $1.3bn today! Large gains across the board



  • Registered Users Posts: 188 ✭✭kellyj77


    Spot closing to $45. This is happening way quicker than I expected. Thought I'd have more time to get more money in. I'm hopeful there will be pull backs like the last super cycle



  • Registered Users Posts: 1,156 ✭✭✭RainInSummer


    Grist for the mill.

    Another bananas gains day today!



  • Registered Users Posts: 3,765 ✭✭✭One More Toy


    What is your preferred source for spot rates? Tia



  • Registered Users Posts: 1,156 ✭✭✭RainInSummer


    Numerco on Twitter, it's the go to.

    You can also use Uxc.com, create an account and sign in.



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  • Registered Users Posts: 188 ✭✭kellyj77


    Yep numerco on twitter for me



  • Registered Users Posts: 17,895 ✭✭✭✭Thargor


    Any of you taking a punt on Sprott (SPUT) or do you think theres more money in the producers/explorers?



  • Registered Users Posts: 1,156 ✭✭✭RainInSummer


    It's way safer option than explorers certainly. The flip side of that of course is that you limit your upside. The Discord I'm most active on regard it as the safest 2 or 3x you'll make.

    Developers that make the leap into becoming producers during a bull run are the ones to outperform the rest.

    Bannerman is my pick in terms of developers, but Global Atomic or Denison Mines would be considered really great picks too. Denison due to their asset and Global due to both a great asset and a clear path to production as regards permits. The only risk on Global is that they're located in Niger, which has been a bit troubled recently.

    Denison are located in Canada, and they're trialling a method of mining that's untested in that particular region. Their permits alone may take years. I'm in them as my second largest holding though. Not because I believe they'll get into production, but because they're well known and they have option chains (more on that later).

    I picked Bannerman as a third largest as they are highly leveraged to an increasing U price. Their asset is huge, but low grade. They suddenly become very relevant as the LT contract price heads into the $70s. Their team is great too and their CEO is also the current head of the WNA. They're an obvious target for a Chinese buy out given their Namibian location.

    To give some context John Quakes on Twitter has stated that the average LT price in the last bull run was $74. Not sure how accurate that is though!

    Explorers are up there when it comes to dramatic upswings too. They can go from zero to hero on a set of drill results.


    Finally, it looks like WSB are picking up on this. They'll target companies with options. That's limited to a handful in this space, Denison being one of them.



  • Registered Users Posts: 1,156 ✭✭✭RainInSummer


    Oh and to answer your question, I'll be buying in to SPUT late this month when I get paid.



  • Registered Users Posts: 188 ✭✭kellyj77


    On your last point, uranium is picking up massive traction on wsb and we all have seen then influence they have had previously. The uranium market is quite small so their impact should be considered. I saw ccj had been in top 5 mentioned stocks on reddit for the past few days. Denison also getting alot of attention. I hold both but if I didn't this would definitely sway me somewhat into which miners to pick.



  • Registered Users Posts: 1,156 ✭✭✭RainInSummer


    So far without the American or Canadian exchanges being open I've posted my biggest single day's gains.

    Australia:

    BMN: 25.49%

    BOE: 13.21%

    PEN: 31.82%

    VMY: 38.24%


    London:

    AURA up 48% so far

    I have no doubt these prices will correct over the next while but man, what a day, and my biggest holdings have yet to start trading!



  • Registered Users Posts: 188 ✭✭kellyj77


    Mental. Woke up to a 28.3% gain in DYL. Following Fridays gains its getting ridiculous. Pre market looks like more big gains across the board aswell for uuuu, dnn, ccj etc



  • Registered Users Posts: 3,765 ✭✭✭One More Toy


    Having read here and reddit and twitter, I decided to get in on some of the action with Kazatomprom, mostly just for fun, up 11% today, a bit short of you guy's gains :)



  • Registered Users Posts: 1,156 ✭✭✭RainInSummer


    It's not bad for a few clicks! Kazatomprom is as close as you'll get to a blue chip in this space.

    It's been crazy the past couple of weeks and especially the past two trading days. Don't be afraid to take profits.



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  • Registered Users Posts: 17,895 ✭✭✭✭Thargor


    I cant make up my mind tbh, I got in early with a couple of Lithium producers on the ASX and made a couple of bags but then saw all the newbies rushing in and getting burned twice in the last couple of years, Im wondering if the exact same thing is happening here or if theres still a few 100% to go when you look at the historic highs a lot of these companies used to be at. Hindsight trading off a graph like that is a muppet move though.



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