What’s been happening

Prices are moving across all components of the nuclear fuel cycle: enrichment, conversion and, of course, uranium.  The U3O8 spot price has moved through $57/lb, chalking up a respectable 17% growth for calendar 2023.  

The sector’s largest ETF, URA, issued new units last week 

We discuss the factors behind this growth, the return of capitalisation of uranium sector ETFs and whether uranium equities are responding or lagging.

Winner of the week 

The major corporate news this week was American Lithium’s spin out of their Macusani Uranium Project in Peru.  After acquiring Plateau Energy Metals in May 2021, American Lithium has released the project to develop beyond the shadow of the company’s lithium assets.

The spin out is being effected via a reverse takeover/back door listing and the Winner of the week was awarded to the shareholders of the target.
What luck to have invested into a, ehem, listed dog shampoo company and receive market salvation via exposure to uranium – at a perfect time to ride the most prospective commodity play of recent times.

https://www.globenewswire.com/news-release/2023/06/07/2683853/0/en/Friday-s-Dog-Holdings-Announces-Plan-of-Arrangement-to-Become-Major-Uranium-Developer-as-American-Lithium-Spins-Out-Macusani-Uranium.html

Bungle of the week

We found a most deserving awardee of the Bungle of the Week – Carla Denyer on behalf of the UK Greens party.  Whilst the Greens continued science-denying opposition to nuclear power makes them a perennial short listee, Carla got her math horribly wrong when she told BBC that “Nuclear is between eight and eleven times more carbon intensive than renewable energy”. 

https://twitter.com/TheGreenParty/status/1666075811777003520?s=20

This is at odds with the UN Economic Commission for Europe’s comprehensive life cycle assessment of all electricity sources, published over a year ago, which found that nuclear power had the lowest carbon intensity of any energy source.  

See https://unece.org/sed/documents/2021/10/reports/life-cycle-assessment-electricity-generation-options

We discuss whether it’s bad math or bad faith – and where those ludicrous numbers could have come from.

Tweet of the week

This week’s tweet highlights the major moves afoot in how nuclear energy is perceived by the ethical investment industry, following a Morningstar article highlighting that sustainable funds powerhouse Parnassus Investments have removed nuclear energy from their restriction lists.
See https://www.morningstar.com/funds/sustainable-funds-powerhouse-parnassus-weighs-investing-nuclear-energy

Various tweets relayed the story to the delight of uranium investors. However, the actual Tweet of the Week gong is awarded to Nucleation Capital, who tweeted all the way back on May 26 after reading the primary source – ie a Parnassus news release.

https://twitter.com/nucleationvc/status/1661932889695744000

Question of the week

“I have read that the Namibian government have banned the export of critical minerals.  Although it doesn’t seem to include uranium, this can’t be good for the country.  How much truth is in the headlines?”

Moonshots & Fizzers

We have noticed a distinct increase in speculation about Kazakhstan being squeezed between Russia and China.
For instance, the Astana Times led that Kazakhstan was keen to make BRICS into BRICKS: https://astanatimes.com/2023/06/kazakhstan-seeks-to-join-brics-and-enhance-trade-and-economic-cooperation/  and https://www.seetao.com/details/210273.html

Oilprice.com ran the headline that “China And Russia Lock Horns Over Kazakhstan’s Uranium” 

https://finance.yahoo.com/news/china-russia-lock-horns-over-180000094.html

Whilst this type of media reporting is usually a guarantee of Fizzerdom, some speculators feel a Moonshot could be on the way if Kazakhstan is unable to maintain a Western-facing facet.