Ben Finegold: Uranium Cycle Still Early, What Will Kick it to the Next Stage | Summary and Q&A

TL;DR

The uranium market is experiencing a shift in sentiment and demand, driven by changing attitudes towards nuclear energy and supply chain concerns. Spot prices are expected to rise, creating potential opportunities for investors.

Key Insights

• 🗾 Changing attitudes towards nuclear energy are driving the demand for uranium, as countries like Japan and Germany revise their nuclear strategies.
• ⛓️ Conversion and enrichment are crucial stages in the uranium supply chain, with limited capacity and geopolitical risks posing challenges.
• 🍉 Supply chain concerns, such as the reliance on Russian routes and the need for long-term inventory build-up, are influencing market dynamics.
• 😮 Rising spot prices are expected to create attractive investment opportunities, particularly in development and exploration-stage companies.
• 🏍️ Institutional capital is crucial for the further development of the uranium sector and reaching the later stages of the market cycle.
• 🎓 Education and understanding of nuclear energy and uranium remain essential for maximizing opportunities in the market.
• 😮 Rising inflationary costs and the need for primary production will drive the break-even price for Western miners, potentially doubling the price of uranium.

Transcript

thank you I'm Charlotte McLeod with the investing News Network and here today with me is Ben Feingold who runs uranium research at Ocean wall thank you so much for joining me online today it's great to see you thanks for having me Charlotte no problem at all course and as we know our topic today is going to be uranium which is of great interest to ... Read More

Questions & Answers

Q: Where is the uranium market in its current cycle?

The market is currently in the second or third inning of the cycle. To reach the later stages, institutional capital needs to play a more significant role.

Q: What are the main factors influencing uranium demand?

Utilities are increasing their inventories, leading to a rise in term contracting. Changing attitudes towards nuclear energy, driven by the energy crisis and the emergence of nuclear as a solution, are also shaping demand.

Q: What are the challenges in the conversion and enrichment sectors?

Conversion and enrichment have become significant pinch points in the uranium market. Limited capacity, geopolitical risks, and the need for domestic production in the United States pose challenges for the supply chain.

Q: What are the projected uranium prices in the near future?

Spot prices are expected to rise from the current $48.50 to around $75 per pound by the end of the year. Term contracting prices could reach approximately $100 per pound.

Summary & Key Takeaways

• Ocean Wall is an alternative-focused investment house specializing in niche metals, including uranium.

• The uranium market has experienced significant changes in parameters throughout 2021, with shifts in supply, demand, and market dynamics.

• Term contracting is expected to increase, with a potential record year of 100 million pounds by the end of 2022.