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Copper price looking very strong today.

No rest for the team, the dust hasn't even settled from the discovery of a second porphyry and they are already talking about a third porphyry. Fantastic results delivered yesterday.

"Nuclear power produces less CO2 emissions over its lifecycle than any other electricity source, according to a new report by United Nations Economic Commission for Europe (UNECE).

The commission found nuclear power has the lowest carbon footprint measured in grams of CO2 per kilowatt-hour (kWh), compared to any rival electricity sources – including wind, solar, gas and coal.

It also revealed nuclear has the lowest lifecycle land use, as well as the lowest lifecycle mineral and metal requirements of all the clean technologies"

link: https://www.cityam.com/un-crowns-nuclear-as-lowest-carbon-electricity-source/

Very interesting news out today of Kazatomprom signing term contracts with China, which could be an indication that the term market is firming up and a rush of utilities coming into the term market could be on the cards very soon.

The announcement does not tell us any details about the contract such as price and volume, but with the Alashankou uranium bonded warehouse being developed on the China/Kazakstan border targeting 23,000t uranium storage capacity by 2026, it is clear that these contracts will be substantial.

This uranium market is starting to look more and more like a game of musical chairs.

link: https://www.kazatomprom.kz/en/media/view/kazatomprom_zakluchil_kontrakti_na_postavku_urana_s_kitaiskimi_kompaniyami

With an eye watering inflation print in the USA, is there a better inflation hedge out there than physical uranium at the current prices. Take into consideration that energy is one of the best performers during periods of high inflation and that one of the most important political issues of the time is reducing carbon emissions. Physical uranium sits right between the two and couldn't be more perfectly placed in the current climate and the price of uranium has yet to break above $52, which is still below the incentive price for many deposits around the world. Such an opportunity.

link: https://www.bloomberg.com/news/articles/2021-11-10/inflation-builds-with-biggest-gain-in-consumer-prices-since-1990

And the good news keeps rolling in. France gets 70% of it's energy from nuclear and is one of the lowest carbon emitters in the EU. Yesterday it announced that it wants to increase the amount of energy derived form nuclear instead of previous years promises to reduce the amount of energy from nuclear down to 50%. Excellent news for the nuclear industry, that will provide an additional tailwind for the sector going forward.

link: https://www.reuters.com/business/energy/macron-says-france-will-build-more-nuclear-energy-reactors-2021-11-09/

You can feel the excitement radiating from Collin and I don't think he is unjustified throwing words around like "tier 1", or toward the end of the interview when he said:

"To me this is one of the biggest developing stories in the copper world and boy it's nice to have a developing story in the copper world at this point in time."

This is a big daily candle with the sp currently up 11.54%. Chart looking very good and expect a material re-rating is on the cards fairly soon and about time.

"BRDD-21-025 may indicate the potential for a cluster of mineralised porphyry intrusions at Racecourse, as found at Newcrest's giant Cadia-Ridgeway mine elsewhere on the Lachlan Fold Belt."

I like the sound of that!

Another fantastic ZeroHedge article: "On Maxing Out Positions In Uranium".

Link: https://www.zerohedge.com/markets/maxing-out-positions-uranium

Another major catalyst for the sector. The positive developments just keep coming, looking forward to watching this unfold.

link: https://www.sprott.com/investor-relations/press-releases/sprott-asset-management-enters-agreement-with-north-shore-indices-inc-to-acquire-licensing-rights-to-the-index-tracked-by-the-north-shore-global-uranium-mining-etf/

The price doesn't need to go north of $90, because $90 is sufficient to finance all the development-ready mines. But it will go higher than $90 and by a considerable amount, how much, no one knows. But with the way the current stock market aggressively and ruthlessly squeezes shorts, I think even some of the most bullish uranium advocates, like Bambrough might be surprised by how violently this could move up.

The size of the uranium market, both the equities and the physical is so tiny in comparison to anything else in the market, that when the mainstream investor comprehends the opportunities in the space the flood of capital into the sector is going to take the price of uranium to an irrational level. And one of the crazy things about the price of physical uranium is that compared with many other commodities, there is a distinct lack of supply destruction when uranium gets to very high prices.

The price of uranium is not a rounding error in the total cost of running a nuclear power plant, but it is negligible compared to a gas power plant, where the natural gas makes up a substantial percentage of the cost of running the power plant. This means that the price of uranium is less important to the overall economics of a nuclear power plant and the security of supply is the more important factor.

YCA at 700p isn't looking so far-fetched now.

Another rip your face off rally incoming IMO.

Xtract had moved up pretty consistently for the last 6 weeks and this is the first downside movement we have had since we started this move up, so it isn't surprising to see a move down and consolidation. It always helps to have a consolidation to shake out the weaker hands before a further move up. And it gives those that want to buy more a great opportunity to increase their stake size. If the price does remain at this level, I will be happy to increase my position here when funds are available.

I don't know when the uranium narrative is going to hit the mainstream, but when it does and people wake up to how essential and important uranium is the the world's power supply, the moves this market will be astounding. It is incredible how small the market cap of the uranium sector still is even after this years run up. We have Tesla fluctuating in value by more than the entire mcap of the uranium sector.

The funny thing is that the market is pricing in that Tesla will be successful and EVs will be rolled out on a mass scale and if that is the case, where is the additional electricity going to come from? There is a chance this uranium cycle that it gets so out of hand that the extraction of uranium from seawater at a cost of $200/lb, might start to look attractive. It is no coincidence that China is researching into uranium extraction from seawater, because they would still pay $200/lb for uranium if there was no alternative.

I don't know when people will wake up to this, but I am am more than happy to sit and wait for the mainstream to wake up.

China is planning at least 150 new reactors in the next 15 years, more than the rest of the world has built in the past 35. Physical uranium is the best risk to return investment in the stock market.

link: https://www.bloomberg.com/news/features/2021-11-02/china-climate-goals-hinge-on-440-billion-nuclear-power-plan-to-rival-u-s?sref=oX6btBp9

Totally agree. In the short term (days and weeks), private investors are mostly at a significant disadvantage, but it is over the longer term (months), that this disadvantage evaporates and advantages such as being more nimble and requiring lower liquidity for entry and exiting a stock can have major advantages for the PI.

If there is a move above the ATH of copper, it will open some people's eyes to just how high the copper price could go over the next few years. If the majors are already highly motivated to develop their pipelines of future pipelines, a strengthening copper price making new highs will really light a fire under them.

Copper price really moving after having broken it's 5 month consolidation wedge yesterday.

chart: https://imgur.com/a/pq8pEZN