Disclosure: We are currently long CCJ and looking to buy other securities in the Uranium space. This article is not a solicitation or recommendation to buy any security and does not provide sufficient support for an investor to make a decision on any security.
An article appeared today on CNBC explaining how the "Bill Gates-backed nuclear demonstration project in Wyoming delayed because Russia was the only fuel source." The article explains that the project requires a uniquely enriched form of Uranium that is only developed in Russia. The article also touches on the idea that America's nuclear powerplants are far too dependent on Russian Uranium. Wyoming Senator John Barasso weighs in on the matter, saying:
America must reestablish itself as the global leader in nuclear energy, instead [of] relying on our adversaries like Russia for uranium, the United States must produce its own supply of advanced nuclear fuel.
Nuclear energy has long been a favored investment theme by our firm and we have covered it fairly extensively on this site. There is a host of domestic economic trends which support higher Uranium prices such as the move to renewable energy sources, EVs and even crypto.
But our bullish stance on the space has more to do with the international geopolitical situation. As soon as the Democrats retained the White House in January of 2021, it was clear that Russia would make some sort of move. And given that 75% of the world's uranium production at the time was controlled by Russia, alternative sources of uranium production would need to be established. So we started watching and trading various Uranium names and we continue to do so. This article just provides additional fodder for the case we have been making for Uranium for several years.
From a technical trading standpoint, our trading model had identified a potential capitulation event in several of our Uranium stocks and if our trading signals are confirmed, we fully expect to add to our position in this space over the coming days.