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#Bull Case
Added 2 weeks ago

The Uranium sector is much smaller than even the very small gold market and as new buyers enter the market, any companies involved will do exceptionally well. A number of other companies have also purchased Uranium as an investment and it has the added benefit of reducing the amount available on the spot market, which will further fuel the price rise and increase the urgency to sign long-term contracts.

Boss acquires strategic uranium inventory after completing $60m capital raising
Strategic acquisition will strengthen Boss Energy’s position in offtake and project funding negotiations
Highlights
• Boss has entered into Binding Agreements to purchase 1.25 million pounds of uranium on the spot market at a weighted average price of US$30.15 per pound
• Strategic acquisition to be funded by a well-supported A$60M share placement
• Placement price of 14 cents per share, representing a discount of 9.7% to the last closing price and 10.6% to the 10 day-trading volume-weighted average market price (VWAP)
• Acquisition of uranium inventory will deliver several significant benefits for Boss as it becomes Australia’s next uranium producer:
? Provides greater flexibility for financing and off-take negotiations
? De-risks the Honeymoon restart as it will ensure Boss can meet offtake obligations, providing initial customers with confidence of supply
? Clear strategic value and upside for Boss Energy shareholders given forecasts of tight supply-demand fundamentals in the uranium market

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#Uranium Mining Companies BUY o
Added a month ago

Uranium Mining Companies BUY on the Spot Market

  • This week in #uranium saw some pretty big new with $YCA (Yellow Cake) buying 3M lbs, $DNN (Dennison Mines) buying 2.5M lbs $UEC (Uranium Energy Corp) buying 800k lbs. 
  • $DNN - This is the first time a non producing (exploration/developing) company raises money and buys on the spot market. 
  • $CCJ (Cameco) and $KAP (Kazataptom) - that supply 60% of the worlds mined uranium have both stated they will more than likely need to buy on the spot. 

Uranium Supply Deficit 

  • CAPEX is down 75% since 2013. Cameco down 90% and Kzataptom down 60%. 2 largest companies in the world are not exploring or bringing on new mines. 
  • Utilities are complacent that there is plenty of uranium to go around
  • It can take 10+ years to drill, permit and build a mine with most never getting off the ground due to the public image of uranium and environmentalist
  • See photo attached

COVID-19 Effects 

  • $CCJ still is not producing any pounds at the moment due to their mines being offline. They won't be turning them back online until they know Covid is totally under control in Northern Saskatchewan, Canada. 
  • $KAP is still yet to really know how bad their production numbers will be after temporary stopping/reducing their ISR (in-situ recovery) mines due to Covid last year. ISR mines take time to see the effect and we will see how much damage has been done as the year goes on. 
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##Broker Report
Added 2 months ago

BOE is Sprott's pick in the ASX uranium sector

https://sprott.com/media/3626/210216-boe-scp-initiation.pdf

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#Bull Case
Added 5 months ago

http://articles.cruxinvestor.com/elon-musk-evs-will-double-electrical-demand-impact-on-uranium 

Nuclear vital to feed the electricity demands of the future clean EV revolution 

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#Bull Case Uranium
Last edited 5 months ago

Whilst viewed as a scary source of energy, it is widley misunderstood due to a few freak accidents that have occured over the last 60 years. 

That said, it becoming safer and safer as further regulations and build quality improve.

"Global nuclear energy is on the rise. Uranium must fuel these nuclear reactors, but the resource is below the cost of production and supply is now severed. As a result, supply is shuttering quickly and nuclear fuel demand is rising" (Smith street weekly).

“The consequence of that, if you have 6 billion dollars invested in a reactor and you’re burning a million pounds of fuel a year, the difference to you between spending 30 million dollars on yellowcake and 60 million dollars on yellowcake is entirely irrelevant. It’s the 6 billion dollars that you have invested in the plant that matters. What that means in the case of uranium given that it sells for $24 and it costs $60 is that the price of uranium must go up and because there is so little demand elasticity, the price of uranium can go up. The price is something that must go up and can go up almost certainly will go up. I just can’t tell you when.” - Rick Rule, Sprott U.S. Holdings, 15 MAR 2017 

 

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#ASX Announcements
Last edited one year ago
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