An Interview with an Up-and-Coming Uranium Developer
 |
| By Sean Brodrick |
I have a red-hot interview for you today. An interview with a uranium developer.
But first, let’s talk about the latest in uranium and uranium stocks. The spot price of the energy metal soared over $73 per pound in September — the highest since January 2011 — before pulling back to around $70 recently.
There is some overhead resistance here, and uranium could zig and zag as it tries to break out. But break out it will.
Demand is soaring! There are now 434 operational reactors globally, with 59 under construction and 111 planned. Heck, even Japan — which suffered the most from the Fukushima nuclear disaster — is restarting many of its nuclear power plants.
In 2021, global demand for uranium from nuclear reactors was estimated at 62,500 metric tons. By 2030, that’s forecast to rise to 79,400 metric tons … and by 2040, 112,300 metric tons.
A Yawning Supply Demand Gap
And those figures may need to be adjusted higher. Companies like Microsoft (MSFT) are talking about using small modular reactors to power their AI dreams. And those aren’t even figured into the demand equation yet!
There is more supply coming online. One of the world’s largest uranium producers, Kazakhstan's Kazatomprom, has produced 20% below what its contracts with the Kazakh government allow since 2018. With uranium prices pushing higher, that’s changing!
Kazatomprom is going to raise production next year, producing 10% below its contract limit. That will be 25,000-25,500 tonnes. Then in 2025, it plans to produce at its full contract limit, or 30,500-31,500 tonnes. Each metric tonne equals 2,204.6 pounds.
So, Kazakhstan will produce an extra 22 million pounds of uranium by 2025.
Still, it’s not going to be enough. Not by a long shot. There is already a 50 MILLION POUND DEFICIT between what comes out of the world’s uranium mines (135 million pounds) and what utilities require annually (185 million pounds). And as I said, new reactors are being built at a feverish pace.
Currently, the deficit is made up by sales out of existing stockpiles. That’s a short-term solution. Longer term, we’re going to need more mines. That opens the door for other uranium producers, as well as developers and explorers.
A Developer with a Story to Tell
That’s why I was glad to sit down and chat with Bill Sheriff, executive chairman of EnCore Energy (EU).
Just watch this video, and Bill will give you the detailed scoop on his company …
Click here to watch the video.
You can see that the future looks very bright indeed for EnCore, which will start production at one of its projects in November. And it has a bunch more uranium projects in the pipeline.
Importantly, EnCore does In-Situ Recovery (ISR) uranium mining. It’s basically a water treatment plant that recovers a uranium deposit using oxygenated water. It means a much lower capital expenditure to get the project producing and lower operating costs going forward.
AND EnCore is starting production in two states — Texas and Wyoming — that are the easiest and cheapest places to build a uranium mine.
Encore is just one of the exciting uranium companies I’m watching. But remember, you shouldn’t buy a uranium stock just because some random dude on the Internet profiles it. Instead, you should do your homework on uranium stocks and decide whether they’re the right fit for your portfolio.
Many of the better ones can be found in the Sprott Uranium Miners ETF (URNM). It has an expense ratio of 0.85%. It owns Kazatomprom, Cameco (CCJ) … and many more top names. And because it’s a fund, you don’t have single-stock risk.
Take a look at a chart of URNM …
Click here to see full-sized image.
You can see URNM broke out in August and surged in September. Now, it’s pulling back, as the market sells the Kazatamprom news. Well, nothing travels in a straight line. To me, this pullback looks like a time to consider buying URNM and/or select uranium stocks.
I previously recommended URNM on Aug. 23. It’s up nearly 20% since then. The S&P 500 (SPY) is actually down over the same time. So, you can see where the momentum is in this market.
The uranium bull is just getting started. You might want to hop aboard for what should be an extraordinarily profitable ride.
That’s all for today. I’ll be back with more real soon.
All the best,
Sean
P.S. If you’re interested in specific, actionable uranium names, you’ll want to see my presentation at the New Orleans Investment Conference, which I’ll be attending. The conference takes place from November 1 to 4 at the Big Easy, which is a fantastic place to visit, making this an exciting opportunity for smart investors. There are so many great speakers, some of the biggest names in the business, and plenty of little companies that could be tomorrow’s titans. Check it out, and I hope you join me for what’s going to be a fun and interesting event.
