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WallStreetBets Rally Behind Cameco as Uranium Goes Nuclear

Uranium Stocks Explode As WallStreetBets Goes Nuclear

In the past few weeks, when laying out the core elements behind the increasingly bullish…

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This article was originally published by Zero Hedge

Uranium Stocks Explode As WallStreetBets Goes Nuclear

In the past few weeks, when laying out the core elements behind the increasingly bullish uranium thesis we made the following observations:

  • The buying frenzy in physical uranium unleashed by the Sprott Physical Uranium Trust would become self-fulfilling, as the rising price of uranium would lead to a higher price in uranium-linked stocks, lead to more buying by producers seeking to lock in lower prices as well as more inflows into stocks and ETFs such as the Sprott Trust itself, which in turn would lead to more inflows and even more buying (the last was confirmed late on Friday when Sprott massively upsized its physical uranium buying program by $1BN to $1.3BN).
  • Accelerating ETF inflows would lead to greater investor awareness of the underlying core thesis, leading to even more inflows, even more buying and so on. Indeed the latest snapshot of the URNM ETF shows 8 consecutive days of inflows, including the biggest one-day inflows on record.
  • Taro Kano, Japan's administrative reform minister and leading contender to replace prime minister Suga, said Japan needs to restart nuclear power plants, in order to realize its goal of achieving carbon neutrality by 2050. Such a reversal from the former nuclear skeptic would mark a seachange in the nuclear industry and lead to a surge in uranium demand in the coming years which producers would seek to lock in asap.

We left off by saying that more upside is assured "especially if the upward momentum is picked up by the reddit daytrading army."

Fast forward to today, when Bloomberg has caught up to us, writing that "Uranium stocks surged to their highest levels in a decade amid a buying frenzy by Sprott Physical Uranium Trust that’s seen it amass millions of pounds of the commodity used to power nuclear reactors."

The story is familiar to regular readers: while uranium producers have been rising since last year due to Covid-19 related supply disruptions and demand for the commodity from nuclear reactors, explaining why we first turned bullish on the sector one year ago, "
the rally gathered momentum in the past two months as the Sprott fund started purchases that propelled the heavy metal to an almost seven-year high."

"It is not a secret that investors’ newfound interest in uranium, predominantly through Sprott’s physical uranium trust, is the driving force behind its resurgence," Morgan Stanley strategists Marius van Straaten and Susan Bateswrote in a note.

It certainly isn't a secret for our readers, as we have been covering this move in details for the past two weeks, but judging by today's price moves it clearly was a secret to most: 

Cameco, the world’s second-largest uranium producer, surged as much as 8.5% in Toronto, reaching its highest since March 2011. Other uranium-linked stocks including Denison Mines Corp. also neared their 2011 levels, while NexGen Energy Ltd. hit a record on Monday.

In an attempt to taper investor euphoria, Morgan Stanley said that moving forward, investors are likely to focus on the sustainability of such a rally as the supply and demand fundamentals of the commodity haven’t changed since Sprott started buying. “While coal and natural gas prices are driven up by actual market tightness, uranium’s underlying supply-demand fundamentals haven’t meaningfully changed over the last few months to warrant this price surge,” the Morgan Stanley  analysts wrote.

Well, actually... no: Morgan Stanley is dead wrong in their assumption that fundamentals will now be a factor for the simple reason that we were also correct in predicting the imminent arrival of the raddit daytrading crowd. 

Indeed, as we read in a separate piece today from the WSJ, according to which "shares of uranium mining companies surged as retail traders from Reddit's WallStreetBets forum focused their energies on the rallying radioactive metal."

Companies tied to uranium in Australia and the U.K. powered higher Monday, while U.S.-listed companies rose in premarket trading.
Sydney-listed uranium miners Peninsula Energy Ltd., Energy Resources of Australia Ltd. and Bannerman Energy Ltd. all closed more than 25% higher. U.K.-listed miner Aura Energy Ltd. jumped more than 35% and Yellow Cake PLC, a company that acts as an exchange-traded fund for uranium, rose 13%.

Meanwhile, our long-term favorite stock, Cameco, has become the most-discussed company on WallStreetBets, beating such tech giants as Apple, Tesla and Alibaba according to SwaggyStocks, a website that we first profiled months ago as a good tracker of popular symbols in the forum.

According to the WSJ, recent posts on WallStreetBets - who may or may not have read our extensive coverage here - have put forward bullish arguments in favor of uranium prices and related mining stocks, complete with the forum's typical mix of memes and humor.

One post on the site last week pondered whether there was "A GME Like Opportunity In Uranium?," using the ticker symbol for GameStop Corp., the original meme stock.

The WallStreetBets activity follows a sharp price rise for the physical metal used largely to fuel nuclear power plants. New York-traded uranium futures have surged over 30% so far this quarter to $42.40 a pound, which as detailed extensively last week, have been the direct result of the Sprott Physical Uranium Trust, which - let's not mince our words - is hoping to create a Hunt Brothers' like squeeze in uranium.

The fund, which trades on the Toronto Stock Exchange, has amassed almost 25 million pounds of the metal since it was first launched in July and bought 850,000 pounds on one day alone last week, according to Sprott. The total mined supply of uranium was roughly 120 million pounds in 2019, according to the World Nuclear Association.

Investors are also betting that demand for the metal will rise amid a global shift toward less carbon-intensive sources of energy. Governments including the U.S. and China have pushed for a role for nuclear power in global efforts to mitigate climate change, helping to broaden the appeal of uranium among investors, said Mr. Liebenberg.

"The uranium market is quite niche and small but the interest I have seen from generalist investors has been much broader than I used to see in the past," said Mr. Liebenberg.

A page on Reddit called UraniumSqueeze has attracted more than 13,000 members since it was created in February. It describes itself as "dedicated to all the investors and traders passionate about the uranium market."

And with the Biden admin hoping to make coal power extinct by 2030, expect much more upside not only thanks to fundamentals which make nuclear power the only game in town, but now that the apes are pushing the entire sector higher.

Tyler Durden Mon, 09/13/2021 - 15:54


Aldoro Resources covering all bases with rubidium, lithium, nickel, copper, gold and more in rock chip samples

Special Report: Aldoro Resources is covering all bases across its diverse prospects in WA, posting high-grade rock chip assays for … Read More
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Aldoro Resources is covering all bases across its diverse prospects in WA, posting high-grade rock chip assays for a suite of metals including gold, copper, nickel, lithium and rubidium.

Junior explorer Aldoro (ASX:ARN), is using grassroots exploration techniques to improve the surface geochemical knowledge of its tenements across the Wyemandoo pegmatite, Narndee Igneous Complex, and Quandong Well target, collecting 20 rock chip samples.

Evidence of mineralisation across pegmatite, magmatic nickel-copper gossan and VMHS gold-copper targets was uncovered at all three targets.

Samples from the Wyemandoo pegmatite returned top grades of 0.80% rubidium and 0.81% lithium.

A high-grade rubidium-lithium lepidolite pegmatite sample from Wyemandoo. Pic: Aldoro Resources

The results are exciting after Aldoro recently identified world-class rubidium potential of its nearby Niobe project, and warrant drilling investigation.

At Narndee, top results from samples included up to 0.37% nickel, 0.15% copper, 0.09% cobalt, 27ppb palladium and 22ppb gold.

That included two samples taken from gossans within a couple of kilometres of the VC1 target, where Aldoro struck magmatic sulphides in the first drilling undertaken at Narndee in a decade.

Aldoro Resources
Gossan 2, exposed in a historical exploration pit 1000m SSW of the significant VC1 drill hole. Pic: Aldoro Resources

Meanwhile, sampling at Quandong Well returned best results of 1.93g/t gold and 0.45% copper.

BHP subsidiary Dampier Mining explored Quandong Well in the 1970s, drilling 31 holes for 1731m that are yet to be compiled and validated by Aldoro.

The old timers reported significant copper, zinc, and gold results in oxide phases close to the surface, grading into a sulphide assemblage of pyrrhotite and chalcopyrite at depth.

Next steps

The rock sampling program was an important step for Aldoro, which noted the surface geochemical dataset is inadequate over most of its tenement package.

Initial results have enabled the company to develop an industry-standard database as a launchpad to future exploration success at Wyemandoo, Narndee and Quandong Well.

Aldoro plans to complete systematic rock chip and soils sampling programs and detailed mapping over the Wyemandoo pegmatite swarm.

This will identify the most prospective zones for drill targeting and locate pegmatite strike extensions and occurrences under soil cover.

The company said field reconnaissance and field mapping will continue to locate and assess all prospective areas of the tenement package for LCT pegmatites, nickel gossans, and copper-gold gossans.




This article was developed in collaboration with Aldoro Resources, a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post Aldoro Resources covering all bases with rubidium, lithium, nickel, copper, gold and more in rock chip samples appeared first on Stockhead.

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Energy & Critical Metals

Green Energy: Al Gore backs Origin’s UK energy provider and Victoria’s big battery switches back on after fire

Origin’s Octopus gets a convenient investment Former US Vice President Al Gore, of hanging chad and The Inconvenient Truth fame, … Read More
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Origin’s Octopus gets a convenient investment

Former US Vice President Al Gore, of hanging chad and The Inconvenient Truth fame, has doubled down on his support of the energy transition since his iconic slideshow documentary came to life in 2006.

He is now in partnership with Australian generator Origin Energy (ASX:ORG), which like many other Australian power companies has faltered in recent years as energy prices have come off the boil.

It is onto a winner at the moment with its investment in UK green power retailer and tech play Octopus Energy, which banked a £211 million capital injection from Gore-chaired Generation Investment Management for a 7% stake in the firm.

That has been matched by a £36 million investment from Origin that has kept its stake at 20%, as the GIM investment boosted Octopus’ value to £3 billion (around $5.5b Aussie).

GIM has the option to double its stake before the end of the financial year, which would likely prompt Origin to exercise an option to maintain its fifth of the UK-based company.

Origin CEO Frank Calabria said Octopus has tripled in value since Origin entered the green energy play in May last year, highlighting the investment as an important growth avenue.

Octopus holds around £3.4b of renewable power generating assets and is known for releasing Kraken – not the nautically-themed rum (or crypto exchange) but an energy retail tech platform licenced to energy retailers, including Origin.

Origin’s shares were up almost 5% in early trade as energy stocks soared, with Octopus also having snared 580,000 customers in the UK from the recent collapse of energy retailer Avro Energy.

Gas prices have hit an all time high in Europe as energy prices skyrocket ahead of the northern hemisphere winter.

The International Energy Agency’s Fatih Birol has urged countries to stay the course with the transition away from fossil fuels, saying green energy policies were not to blame.


Origin Energy share price today:



Vic’s big battery back in business after fire

Remember the big fire that shut down the new Tesla battery system near Geelong?

It’s coming back online baby, after regulators told Neoen and Tesla they were all good to resume energisation testing tomorrow.

Two Megapacks caught alight during the commissioning phase in July, and several detailed investigations followed to determine the root cause.

Once the Country Fire Authority (CFA) brought the situation under control, it handed control of the site to Energy Safe Victoria (ESV), who then started an investigation into the incident to prevent a recurrence.

The investigation identified the cause as coinciding short circuits in two locations, which was started by a coolant leak outside the battery compartment. 

This occurred while the Megapack was offline in a service mode that removed fault protections, enabling it to go undetected while a fire commenced in the adjacent battery compartment. 

Neoen Australia managing director Louis de Sambucy said: “We have taken the time to understand the cause of the incident and we have implemented actions to ensure it will not happen again.

“We are now actively working with all stakeholders to complete commissioning and testing of the project and we look forward to sharing the lessons learnt with the industry in coming weeks.”

Testing at the big battery in Victoria will recommence. Pic: Neoen


Independent report to highlight key learnings

Two independent groups, Energy Safety Response Group and Fisher Engineering, are compiling a report with key learnings from the fire, which will be released by November.

Key insights, including lessons for fire management and emergency response, will be shared publicly to support the relevant authorities in the deployment of battery storage technology, the groups said.

Anxiety about the safety of battery storage systems is an important fear to quell for investors in green energy.

A recent overheating incident at the world’s biggest battery in California, in batteries developed by LG, also highlighted this tension as the pace of large-scale battery developments increases.

Neoen and Tesla are continuing to work towards delivering the project in time for the Australian summer.

The Victorian Big Battery will unlock up to 250 MW of additional peak capacity on the existing Victoria to New South Wales Interconnector (VNI) over the next decade, playing a key role in the transition of the electricity sector towards lower emissions.


Fin enhances renewable case at Onslow project

At the junior end of the green energy spectrum we have a new proponent in large-scale renewable hydrogen proposals on the cards in salt project developer Fin Resources (ASX:FIN).

Its North Onslow Solar Salt Project has been radically upscaled in recent weeks as Fin looks to turn it into a multi-commodity ‘green products’ hub.

Fin says Onslow could be the perfect location for a combined solar salt, SOP, caustic soda, chlorine and hydrogen hub.

That is backed by new investigations which suggest it is perfectly located for wind and solar generation.

Consultants to Fin say its 905km2 tenement package has the potential to host some 60 GW of solar with a total wind resource estimated at 15 GW.

Fin, which is progressing a scoping study on the Onslow salt project, envisions a future two stage development that could see it supply its estimated 358MW of power needs for its solar salt, sulphate of potash and chlor-alkali product initially.

A further 29GW of solar and wind resource is outside the planned development portfolio, meaning that could present a future opportunity to move into desalination and ‘green hydrogen’.


Fin Resources share price today:


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Devil in the detail for HWK gold explorer spinoff Diablo

It is unusual for an exploration company to come along with assets as advanced as those with which Hawkstone Mining … Read More
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It is unusual for an exploration company to come along with assets as advanced as those with which Hawkstone Mining spin-off Diablo Resources plans to list.

Diablo (to be ASX:DBO) will join the ASX boards in the coming weeks with a suite of three highly prospective US-based gold and copper projects – all of which are drill ready and proximate to projects of significance in their region.

The projects were formerly on the Hawkstone books, but that company has turned its full focus to lithium in Arizona (it’s literally on the cusp of changing its name to Arizona Lithium), leaving the highly prospective suite of assets to be spun into Diablo.

“I think our shareholders understand that the Big Sandy lithium project is such a large project, with lithium in Arizona ideally located, and it’s a big potential resource,” Hawkstone MD Paul Lloyd, who will also become Diablo chairman, told Stockhead.

“When we brought these gold projects into Hawkstone they were dwarfed by Big Sandy, and therefore we don’t think they ever got the market valuation that was warranted.

“We’ve done a lot of work on the projects to get them to the point where they are drlll-ready, and we think they’ll create a lot more value for shareholders in a separate entity.”

Diablo’s assets include the Devil’s Canyon gold project on the world-famous Carlin Trend in Nevada, the Western Desert gold-copper project 50km west of the Long Canyon gold mine in Utah, and the Lone Pine historical high-grade gold project 8km east of the 3-million-ounce Beartrack mine currently being explored by TSX-listed Revival Gold in Idaho.

Diablo’s exploration projects. Pic: Supplied.

Spicy project trio

Diablo’s name suggests heat, and the early signs suggest there’s plenty in the ground at each of its exploration projects.

At Devil’s Canyon, rock samples have returned astounding assays as high as 191.5 grams per tonne gold, 524g/t silver and 16.05% copper.

Samples from Western Desert have come in at 6.9g/t gold, 1495g/t silver and 5.09% copper, while historic drilling at Lone Pine returned assays including 1.2m at 17g/t gold and 1.9m at 12.9g/t gold with mineralisation open in all directions.

Lloyd isn’t planning on wasting any time in getting Diablo’s exploration efforts going, expecting to have approvals in place for drilling on at least one of the projects around the time of listing.

“It’s more than likely we’ll be able to commence drilling at Western Desert in Utah, which is very close to Long Canyon and a project where we’ve recorded some terrific surface numbers,” he said.

“The gravity of the work we’ve already done there to date and the other technical work we’ve completed really gives us a lot of upside and there’s potential for great early-stage results from drilling.”

Priority targets at Western Desert. A1 and A3 rated as priority. Pic: Supplied.

Located in the prolific Carlin Trend, where almost 200 million ounces of gold have been produced over the years, Devil’s Canyon is likely to be the Diablo flagship.

Lloyd said he had long aspired to working with a project in the region, and will have the chance to do so with Diablo.

“There’s been some really impressive rock chip samples come out of there already, and it sits only 20km west of Kinross Gold Corporation’s in-production Bald Mountain mine,” he said.

“Devil’s Canyon has similar geology to that deposit. We’d love to get in there and have four or five holes completed before the weather changes.

“In this area, you’re hunting for elephants, and those rock chip samples give us an indication that there’s something serious there. We’re really looking forward to drilling it.”

Devil’s Canyon is over the border from Western Desert in Nevada. Pic: Supplied.

Minimal modern-day exploration has been carried out at Lone Pine, where 18 shallow holes were drilled in the 1990s at the King Solomon prospect.

The project includes a high-grade zone mined prior to 1907, where maiden drilling in 2020 returned significant high-grade results.

Drone magnetics are planned for Lone Pine in Q3 2021.

The Lone Pine project in Idaho. Pic: supplied.

Experience on the ground

Floated by the same team behind the IPOs of BPM Minerals (ASX:BPM) and Pantera Minerals (ASX:PFE), there are some familiar names at management level for Diablo.

Experienced gold geologist Lyle Thorne, who was previously exploration manager for NTM Gold prior to its Dacian merger, will join as CEO, while Barnaby Egerton-Warburton and Greg Smith will serve as non-executive directors.

On the ground, the company is drawing on expertise of Harrison Land Services – a Utah based consulting firm which has proved itself to have significant knowledge of the western US.

“These projects, being in Utah, Idaho and Nevada, are all fairly close to their base at Moab,” Lloyd said.

“The team is headed up by Gavin Harrison, who has more than 20 years’ experience with rigs and staking ground, and who helped us acquire these projects to begin with. He’s invaluable.”

When it lists, Diablo will do so with 74.5 million shares on issue and a market capitalisation of $14.9 million, with $6.5 million cash on listing before costs.

“I expect we’ll look really good in the first six months because we’ll have such great newsflow,” Lloyd said.

“Any exploration success should effect the share price significantly.”

Diablo is expected to list on the ASX on October 12, 2021.

At Stockhead, we tell it like it is. While Hawkstone is a Stockhead advertiser, it did not sponsor this article.

The post Devil in the detail for HWK gold explorer spinoff Diablo appeared first on Stockhead.

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