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Uranium Miners Confident They Are ‘On the Cusp of a New Renaissance’

Australia’s next uranium producer says the industry is “on the cusp of a new Renaissance” as nuclear utilities begin to … Read More
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Australia’s next uranium producer says the industry is “on the cusp of a new Renaissance” as nuclear utilities begin to engage with miners on the back of price spikes in the spot market.

Uranium miners have suffered from almost a decade of low spot prices that has seen investment leach from the sector.

Owners of nuclear reactors have been able to rely on low-priced material in the spot market to supplement their long-term contracts.

That option is quickly closing up as feverish uranium buying from the North American-listed Sprott Physical Uranium Trust, hedge funds and mining companies has put a rocket under uranium prices.

Dawdling in the low US$30s for each pound of yellowcake for most of the year, the price shot up to more than US$50/lb in quick time before hitting choppy waters a couple weeks ago.

After sliding below US$40/lb it was back up to US$46.50/lb yesterday, including a $7 price rise in a single night.

The reaction of investors to uranium equities has been wild.

Boss Energy (ASX:BOE) managing director Duncan Craib, whose company owns the development ready Honeymoon mine in South Australia, believes utilities are just about ready to get the market back to sign the long-term contracts needed to restart mothballed operations like Boss’.

Speaking at the Resources Rising Stars Boom in a Room Conference in Perth yesterday, Craib said that renaissance is ready to start.

 

Decarbonisation bringing investors and public sentiment back to nuclear

Nuclear power has been a long-term pariah because of a series of high profile incidents.

The latest is the Fukushima disaster in 2011, but attitudes towards nuclear power have been coloured for decades by the reaction to tragedies like the Three Mile Island and Chernobyl meltdowns.

Although it services up to 20% of global electricity demand, nuclear power is still under a moratorium in Australia.

In some quarters though, attitudes are thawing from policymakers who see nuclear power, which unlike burning coal, gas or diesel for power does not emit greenhouse gases, as a baseload power option to support the shift to renewable energy.

While nuclear energy has been held back by the capital intensity of new builds, Craib says a shift to smaller, cheaper modular reactors will help the sector grow, making uranium a sought-after green fuel.

“So that global increased recognition of (the role) nuclear power can play in decarbonising and mitigating climate change through reducing our carbon emissions, while addressing the energy crisis, is what’s really driving the price of the uranium that we see,” he said.

“And that gap between demand and supply that has always existed is further exacerbated by the fact that the Sprott Commodity Trust is now acquiring a lot of available inventory and removing that from the market.”

 

Perceptions changing

Craib believes perceptions around nuclear power and uranium mining have shifted significantly in the past six months, amid growing concerns about how the world will reach ambitious net zero by 2050 targets and soaring energy prices in the northern hemisphere.

But he said the fundamentals that have underpinned the market’s recent optimism have been brewing for several years.

“There’s a real transformational shift for the past six months … but the key element here is that the fundamentals existed long before this change in global perception towards the mitigating of climate change,” he said.

“It existed long before COVID. The fundamentals were simply industry was in the doldrums.

“This meant a lack of investment in new mines, there’s been no exploration taking place. The utilities have been reliant on existing inventory.

“The big change that’s occurred (with the) sharp increase in the spot price has been the emergence such as ourselves, junior producers acquiring physical inventory, we’re seeing the price rise, similarly as we can see with the Sprott Commodity Trust.”

“And since February, we’ve seen significant increase in investment into uranium equities of some $2 billion, which is really changing the market.”

It is generally accepted that new supply will be needed from 2024 to keep the world’s nuclear fleet running.

Utilities which have been drawing down on spot inventories and are now heading back to the table with current and prospective producers as security of supply becomes a concern.

“(The spot price is) forcing nuclear power plants to change their method and go back to long term contracting, which is where restart projects such as Honeymoon come into play,” Craib said.

“The only way that the industry is going to get off its knees, as it has been for the last 5-10 years, is to encourage higher prices.

“A new incentive price of up to US$60/lb is required to bring new projects back online.”

 

Boss Resources share price today:

 

 

 

 

Conditions for a restart nearing

Spot markets are relatively small and can be particularly volatile, but they provide an important index for long-term contracts, which are generally signed at a 20% premium to spot prices and give consumers and producers confidence that both utilities and mines can be sustainable.

A June feasibility study showed Honeymoon, a restart of an old uranium mine with approvals and an export permit for 3.3Mlb of uranium a year already in place, could be in production within 12 months of an investment decision at a cost of just US$80 million.

Because of that Craib says Honeymoon is a “proven project” with a clear pathway to production.

Honeymoon would be cash flow positive at current spot prices, but Craib says Boss is waiting for the evidence of a sustainable market that will underpin long term contracts.

“For us, we’re only looking to contract about 40% of our mine life,” Craib said.

“At these prices, we can do that and keep a lot of the spot material to get exposure to the upside.

“We’re on the cusp of this new Renaissance period.”

The post Uranium miners believe they’re ‘on the cusp of a new Renaissance’ appeared first on Stockhead.

Author: Josh Chiat

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Precious Metals

Consolidated Uranium, Denison and Other Miners Hitting 52-Week Highs

CI Financial Corp. (T.CIX) hit a new 52-week high of $28.19 on Thursday. CI and McCutchen Group LLC today announced an agreement under which CI will acquire…

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CI Financial Corp. (T.CIX) hit a new 52-week high of $28.19 on Thursday. CI and McCutchen Group LLC today announced an agreement under which CI will acquire McCutchen Group, an ultra-high-net-worth focused wealth management firm with $3.4 billion iU.S. n assets under management.

 

Consolidated Uranium Inc. (V.CUR) hit a new 52-week high of $3.10 on Thursday. Consolidated and Labrador Uranium Inc. have entered into an agreement Red Cloud Securities Inc. to act as lead agent and sole bookrunner on behalf of a syndicate of agents in connection with a fully marketed private placement

 

[nxtlink id="268570"]Denison Mines Corp.[/nxtlink] (T.DML) hit a new 52-week high of $2.32 on Thursday. Denison has entered into a private agreement to sell 32,500,000 common shares of [nxtlink id="269110"]GoviEx Uranium Inc.[/nxtlink], currently held by Denison for investment purposes, and 32,500,000 common share purchase warrants entitling the holder to acquire one additional common share of GoviEx owned by Denison at an exercise price of $0.80 for a term of 18 months.

 

[nxtlink id="269191"]Jazz Resources Inc.[/nxtlink] (V.JZR) hit a new 52-week high of 84 cents on Thursday. Jazz Resources reports that drilling on the bedrock portion of the Vila Nova gold project, Amapa State, Brazil has intersected veins totaling 23.09 meters grading 31.58 g/t (one ounce per tonne) at a vertical depth of 74.47 meters in Hole VN-3

 

[nxtlink id="268339"]Asante Gold Corporation[/nxtlink] (C.ASE) hit a new 52-week high of $1.38 on Thursday. No news stories available today.

 

Canadian National Railway Company (T.CNR) hit a new 52-week high of $163.91 on Thursday. No news stories available today.

 

Canadian Western Bank (T.CWB) hit a new 52-week high of $39.53 on Thursday. No news stories available today.

 

DREAM Unlimited Corp. (T.DRM) hit a new 52-week high of $30.37 on Thursday. No news stories available today.

 

[nxtlink id="268577"]Energy Fuels Inc.[/nxtlink] (T.EFR) hit a new 52-week high of $10.42 on Thursday. No news stories available today.

 

Finning International Inc. (T.FTT) hit a new 52-week high of $50.36 on Thursday. No news stories available today.

 

GFL Environmental Inc. (T.GFL) hit a new 52-week high of $13.51 on Thursday. No news stories available today.

 

NanoXplore Inc. (T.GRA) hit a new 52-week high of $7.28 on Thursday. No news stories available today.

 

Granite Real Estate Investment Trust (T.GRT.UN) hit a new 52-week high of $97.58 on Thursday. No news stories available today.

 

High Arctic Energy Services Inc. (T.HWO) hit a new 52-week high of $1.94 on Thursday. No news stories available today.

 

IGM Financial Inc. (T.IGM) hit a new 52-week high of $47.91 on Thursday. No news stories available today.

 

[nxtlink id="268619"]Josemaria Resources Inc.[/nxtlink] (T.JOSE) hit a new 52-week high of $1.44 on Thursday. No news stories available today.

 

[nxtlink id="269213"]Kiplin Metals Inc.[/nxtlink] (V.KIP) hit a new 52-week high of 98 cents on Thursday. No news stories available today.

 

Loblaw Companies Limited (T.L) hit a new 52-week high of $9.36 on Thursday. No news stories available today.

 

[nxtlink id="268626"]Laramide Resources Ltd.[/nxtlink] (T.LAM) hit a new 52-week high of $1.05 on Thursday. No news stories available today.

 

Brompton Lifeco Split Corp. Class A Shares (T.LCS) hit a new 52-week high of $6.94 on Thursday. No news stories available today.

 

Luxxfolio Holdings Inc (C.LUXX) hit a new 52-week high of $1.08 on Thursday. No news stories available today.

 

 

[nxtlink id="268339"]asante gold corporation[/nxtlink]

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Energy & Critical Metals

PLUG Stock Fans Are Cheering Thanks to This Hydrogen Plant News

Investors in green energy play Plug Power (NASDAQ:PLUG) have a lot to cheer today. Sure, this renewable energy stock is up only 3% at the time of writing….

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Investors in green energy play Plug Power (NASDAQ:PLUG) have a lot to cheer today. Sure, this renewable energy stock is up only 3% at the time of writing. However, investors in PLUG stock appear to have a number of things to cheer today.

Source: Alexander Kirch / Shutterstock.com

Of course, one of the big drivers behind this year’s rally in PLUG stock has been the announced investment initiatives put in place by President Joe Biden’s administration. Clean energy is a clear priority for this administration. Accordingly, renewable energy stocks such as hydrogen player Plug Power are in focus for investors. Investors seem to be bullish on the potential of PLUG stock. That is, given the government’s focus on improving green infrastructure domestically.

Yesterday, Plug Power tweeted out its progress on a state-of-the-art facility in Alabama, NY. As a result of this update, and some rather strong bullish momentum of late, PLUG stock has now approached its six-month high at the time of writing.

Let’s dive more into what this announcement means for investors.

PLUG Stock Surging on Massive Construction Project Update

Yesterday, New York Governor Kathy Hochul announced that Plug Power officially began constructing its $290 million electricity substation and green hydrogen fuel production facility in Upstate New York.

This state-of-the-art facility provides 450 MW of power via an electricity substation. Additionally, a hydrogen production facility will provide 45 metric tons of green liquid hydrogen.

This project is being touted as a big win for various parties involved. From a political angle, this project brings jobs and investment to a rather underserved area of New York. There’s also the decarbonizing aspect of this project, which will help New York in its aim of achieving carbon neutrality by 2050.

From a business perspective, this massive investment is the largest-scale of its kind. Accordingly, investors bullish on the future of green hydrogen in the U.S. may look to Plug Power’s project as a template for what the future may hold.

Various tax incentives and other funding has been made available to Plug Power to push this project forward. Accordingly, investors appear to be enticed by a strong public-private push to get more green energy into circulation in scale as fast as possible. Today, PLUG stock is trending on this news, and for good reason.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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The post PLUG Stock Fans Are Cheering Thanks to This Hydrogen Plant News appeared first on InvestorPlace.

Author: Chris MacDonald

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Energy & Critical Metals

Used Car Prices Hit New Record High, Signals CPI’s ‘Non-Transitory’ Surge Is Not Over Yet

Used Car Prices Hit New Record High, Signals CPI’s ‘Non-Transitory’ Surge Is Not Over Yet

Putting "team transitory" (comprising mainly of…

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Used Car Prices Hit New Record High, Signals CPI’s ‘Non-Transitory’ Surge Is Not Over Yet

Putting “team transitory” (comprising mainly of pro-Fed, pro-Biden commentators) to shame is another significant jump in wholesale used car prices, continuing to make new record highs. The latest data from Manheim shows how the Bureau of Labor Statistics’ September print for used cars and trucks index is about to soar. 

The Manheim U.S. Used Vehicle Value Index increased 8.3% in the first 15 days of October compared to September. From a year ago, the index is up a whopping 37%. 

Much of the surging used car prices have primarily been a function of global supply chain woes impacting new vehicle production, forcing consumers to buy on the second-hand market. Another factor has been falling inventories at dealerships forcing them to continue accumulating used cars to replenish inventories as new car output slumps.

Manheim data reveals the lag between high-frequency data and traditional data at the BLS. We noted after last month’s CPI print that “used cars will turn higher in coming months as Manheim wholesale prices rebounded, ending a 3-mo streak of declines and modestly surpassing the prior high.” 

As for the transitory camp, the latest surge in used car and truck prices may continue pushing up consumer prices that are weighing on consumer sentiment

For much of 2021, surging used car prices have dented buying sentiment among prospective buyers. 

There are still no signs of used car prices slowing down as supply chain disruptions and global chip shortages persist. This week, there’s a new report that aluminum, used in engine blocks, transmission cases, frames, paneling, and much more, could be in short supply in the months ahead. So for the next CPI print, expect used car prices to be hot. 

Tyler Durden
Thu, 10/21/2021 – 13:46

Author: Tyler Durden

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