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Not sure if anyone sat in on this. Aimed at the world’s largest (ie institutional) investors. From the world’s largest fund management group. On possibly the world’s most widely discussed (today) investment topic. Namely “Sustainability - the Path to Net Zero”. Featuring Larry Fink and Bill Gates.
So altogether a pretty big deal. But guess what - not one single mention of nuclear power. I kid you not. Nothing, nowt, nada.
I had to submit my question about how they saw nuclear power’s role in the drive to net zero, six bloody times. In the end my repeated questioning must have embarrassed them (you can see everyone’s questions displayed) and they were forced to respond with “Regarding nuclear power, we are evaluating this”.
So what can we learn from this woeful response? Probably, that uranium may well be the most compelling and asymmetric trade in the world today - but it’s going to take a long while yet to play out. There are an awful lot of people for whom this just doesn’t register. Unbelievable.....
And btw, KAP - I mean how can this not be the single best uranium stock to buy...?
What are your thoughts? Any chance of reaching this before 1st May?
Almost £1 of dividend per share - circa 4.8% comparing to today's price. Nice result. Slightly better to BHP 4.379%.
Saying that I would prefer 6.176% of RIO, especially that KAP is way bigger supplier of Uranium. Still, very nice result :-)
This sounds very promising, thank you Candid.
Gosia,
The press got hold of a draft report few days ago, so it’s not officially published yet but looks like it’s the real deal and the advise is favourable for nuclear.
https://world-nuclear-news.org/Articles/EU-Taxonomy-can-move-forward-with-nuclear-JRC-find
Candid, thank you so much for the answer. Would you be able to share on this BB the outcome of the report or link to it when it is finally published?
Gosia, It’s probably just a consolidation phase after a good rise in recent weeks. In fact the whole uranium mining sector has given back some gains in recent days. Traders are still moving this sector up and down because they can do so.
Importantly the U308 spot price has had a very good recovery from the $27 levels and in now back over $30 on increasing physical purchases by producers and developers. This activity is likely to be followed by hedge funds, ETFs. The real driver will be utility fuel buyers re-entering both the spot and longterm markets, this will really take off at that stage.
On the risk side, although small as EU are not a big nuclear market, I think some investors and buyers have been waiting to see the EU taxonomy review for nuclear (recommendations for nuclear power to be included as sustainable/green energy investment). Early indications of a draft report (due for release this week) show that the scientific recommendation is in favour of nuclear as a green and sustainable source of energy.
Anyone any idea why this so is stuck? RIO and BHP continue to push upwards whilst this one is just "loungering" next to the stagnant water pool... Depressing.
It seems MM attack on a share price started - it's going to be a bumpy ride down and up again. Review your stop losses rules.
If you have stop loss set up again your shares you may want to revisit this. We are likely to see a price being dragged down to trigger the automatic selling, before it will go up again.
DYOR
And another excellent read about US stashing uranium. Apparently the biggest consumer of uranium in the world with not a single mine in operation!
"Nuclear power is the second largest source of electricity generation in the U.S. and its largest source of carbon-emission free electricity. America is also the largest consumer of uranium in the world, yet there is no uranium currently mined domestically."
Any troops being released to Kazakhstan recently? Hmm... Chinese ones looking at a recent RNS...
https://www.prnewswire.com/news-releases/uranium-energy-corp-establishes-physical-uranium-initiative-and-provides-balance-sheet-update-301247892.html
"Yellow Cake Plc, which bets on uranium prices, said on Monday that it had exercised a $100 million purchase option with Kazatomprom. " It seems everyone now is stashing on uranium ore as it reached apparently bottom price and both largest providers decided to limit their production.
Sounds great to me!
One thing that makes me smile is word "stashing" - it brings to my mind other words like "critical mass" or "chain reaction". Let's hope these will refer to our stock prices.
All, enjoy the ride!
https://www.zerohedge.com/markets/uranium-stocks-surge-flurry-producer-purchases-spot-market
Unfortunately I have no visibility of the trades around 11-12, but this could be an attempt to trigger sell at profit rules and release more shares to the market. I can definitely see one large transaction of 30.9k shares at the total value of circa $800k. That's almost a million. If that's the case, then these shares are worth more than $30.6 per share. Nice!
Candid, what's algo? Is that London Stock Exchange algorithm for calculating the share price?
It was probably an algo driven spike this morning, as volume was not huge but nevertheless KAP is starting to get noticed
It could be the market starting to realize how cash generative uranium miners could be with the inevitable move up of the uranium price. Lots of action in YCA this week as well.
Any idea what‘s behind? Uranium stocks generally are in good shape but a 25% jump (though short-lived in that extent) in this heavyweight looks quite extraordinary. Haven’t seen any news on KAP today.
Interesting price action today, well up this morning and was over $30 at one point.
One more - I've just read an article about Czech scientists who developed a new carbon coating for uranium rods that do not desintegrate or corroding easily. It's been patented already in EU and US. If that's the future technology reducing significantly radiating polution and reducing risk of next Czarnobyl or Fukushima, then there will be more countries interested in adopting this and investing in nuclear power plants. I can see UK and France going that route as soon as they realise the benefits of using it in their existing and planned power plants.
One more - I've just read an article about Czech scientists who developed a new carbon coating for uranium rods that do not desintegrate or corroding easily. It's been patented already in EU and US. If that's the future technology reducing significantly radiating polution and reducing risk of next Czarnobyl or Fukushima, then there will be more countries interested in adopting this and investing in nuclear power plants. I can see UK and France going that route as soon as they realise the benefits of using it in their existing and planned power plants.
Definitely Candid. Also price of uranium seems to be picking up as well. We had a steady growth in price since 5th March. Uranium is currently way below its true value - same as it happen to gold and silver. Someone is "stashing" on it before price is unlocked. I would not be surprise if at one point China will start dictating price of uranium and its distribution by keeping hand on the largest deposits in the world (i.e. Kazahstan). At one point all creaziness about zero CO2 emition will force countries to look for alternatives everywhere, including uranium. And that's when the companies still holding to their rich deposits will start gaining in value. I believe we are not far from this scenario. Give it one or two years and things will look completely different. Especially with coal and oil deposits depleting with time.
Spot price responding strongly now to numerous new physical buyers emerging. Things can get interesting very quickly.
They are - a very healthy net profit of circa 40% and very nice earnings per share. And all of this despite Covid hampering operation and decline in Uranium prices. I wonder when they will announce dividend and what % will be allocated per share. This should push share price definitely higher than $24
2020 financial results released today (see KAP‘s homepage, news for investors) looking really nice, will push share price beyond 24 USD