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Gcl going vertical here this morning and no excitement here at all? UK PIs still sleeping on uranium.

In the shorter term I have no idea where the supply side uranium will come from. Most mothballed production will take a year or two to come back online to max output and all new mines won't be built and producing before 2024/2025 and even if we get all high price production coming online, there will be a long time before this market becomes balanced. YCA open Monday morning is going to be interesting.

Great to see some excitement on this board, I have never seen more than a handful of posts a day here. This uranium market has the potential to be really explosive and if you look at historic prices of uranium, there is potentially a long way to go yet.

@Forrest I totally agree that people shouldn't underestimate thorium, I have no doubt it will be used in the future. But it is a new novel technology and likely won't impact this current bull market in uranium.

For some great information regarding thorium, I will direct you to Brandon Munro's video on it. He is a a great commentator on the uranium sector as well as CEO of Bannmerman.

link: https://www.youtube.com/watch?v=s3O9gJI2200

SPUT opened up 13% on the US open. Huge volumes on CCJ NXE ect.

Big money has arrived.

Totally agree. Inflation has arrived and commodities + energy prices are increasing. With government debt levels at such high levels in the US and Europe they won't be able to raise rates the way they did in the 70s to combat inflation, because the governments won't be able to pay the interest to service the debt, with high interest rates. So with rates staying sub 4%, inflation will be here to stay. Uranium is a great hedge against this, with outsized gains if the sector takes off.

It is definitely interesting timing for his directors purchase, considering the longer than expected wait on drilling.

There is also a definite positive feedback loop. People invest in SPUT => SPUT buys physical >> physical uranium prices go up >> new highs are made that generate more interest >> more capital flows into SPUT.

Uranium is still obscure and unknown to most, especially retail. I am looking forward to the day that changes and mainstream capital flows into the sector, because there are such limited places for the capital to go. Congo River and a garden hose come to mind.

Nice 5 year high in physical uranium printed today in the US session at $34.62/lb

I was very tempted with buying more Kap during the recent lows, 23 was bargain territory but I am already overexposed to uranium as it is. I am sure plenty of other took advantage though.

It will be interesting to see if physical uranium crosses $34.20 this upcoming week/month. If it breaks this level, it is a new 5 year high in physical uranium and should bring some renewed interest in the space.

Up 10% for a major producer is impressive to see. Kazatomprom is looking good going forward. What are peoples targets/timeline outlooks for Kazatomprom?

Nice to see a recent video of Jonathan Davis not only explaining the uranium narrative, but highlighting that GCL is the only uranium fund outside of North America/Canada. He goes onto recommending GCL as a way to gain diversified exposure to the uranium market.

The full video is very interesting, but the uranium specific commentary starts on 50:14.

link: https://www.youtube.com/watch?v=F96Cd3m-dXM&t=3014s

With the big moves over in the Canadian uranium plays such as Nexgen and Cameco that GCL have big holdings in, I thought it was only a matter of time before GCL was trading back above 40. Well done to those that we able to hoover up shares below 40, there is a chance it may not trade below 40 again.

This is also my viewpoint @Taverham. If they have the modelling already carried out, it can allows them to plug in results from exploration as and when they come in. The modelling can also feedback to them where they can get the most bang for their buck in exploration and where they need to concentrate exploration efforts to maximise project economics.

YCA looking strong, not much further to go before we are at an ATH for YCA with only blue sky above us.

Really interesting interview with Justin Huhn from Uranium Insider posted today, including in-depth details about the Sprott Physical Uranium Trust and it's "at the market" issuance capability in the future.

link: https://silverchartistreport.com/ui-promo_public-twitter1627263717307

I am no expert, with little understanding of the uranium market compared to some. But I do know that the longer the bear market, the more explosive the bull market when it finally arrives and there has been a brutal bear market in uranium since 2011, wiping out many dedicated uranium investors. I also recognise that the world truly wants to decarbonise it's energy production, the only reliable source of zero-carbon baseload energy is uranium, which it will need to offset the unreliable zero-carbon energy sources of solar and wind, if the world truly wants to decarbonise.

Hard to give a time horizon, I don't have a crystal ball unfortunately. However utilities will have to come to the table to sign long term contracts at some point in the next couple of years and Hedge funds will know this, so will front run them. Utilities have played the market superbly since Fukushima, by avoid spot market purchases and signing short term contracts at low prices. However IMO they have overplayed their hand and should have been signing long term contracts in 2018/19. I think that they would have signed them in 2020, but I can imagine dealing with Covid safety protocols took priority last year.

It is interesting that in the last contract cycle there was no structural deficit in uranium supply/demand, however this time there is structural deficit between the amount produced every year and the amount consumed. This has been exacerbated by covid due to uranium mine shutdowns.

In answer to your question, before all of the developments this year such as SPUT and Bidens support of Nuclear, I would have said 2-5 years to reach $70+ uranium, but I now think between 1-3 years.

Another interesting development that shouldn't be overlooked this year was the short-squeeze narrative that came out of the GameStop saga in January, which mirrored into a silver squeeze narrative in the precious metals market. In comparison to both of these, the physical uranium market is a lot smaller and consequently a lot more vulnerable to a price spike. Especially when you consider that utilities are somewhat price insensitive when it comes to buying uranium. So if/when this narrative spills over into the mainstream, there could be some fireworks. But again, trying to judge timing is difficult with any of this.

The sale is truly here with huge value on offer as we enter the 7th week of the correction in uranium equities, with traders and weak hands firmly flushed out. Sprott Physical Uranium Trust also made it's debut yesterday trading up +6.65% and brought 100,000lbs of uranium.

SPUT first trading day - link: https://money.tmx.com/en/quote/U.UN

Big day yesterday with Sprott Physical Uranium Trust launching, during it's first day of trading yesterday, it finished the day up +6.65% and added 100,000 lbs of uranium to the trust through it’s first "at the market" (ATM) raising. This ability to raise cash ATM, is a huge deal for the uranium market, as it will allow SPUT to do small raises frequently without needing to build up the premium to NAV required to justify the expenses of a tradition broker raise.

For example, SPUT can complete a small ATM raising with a premium to NAV of 1-2%, to buy 100,000lbs, whereas before, the premium to NAV will have needed to be at 8-10% and the raise will need to by much larger in order to justify the broker fees required to raise capital through traditional means.

SPUT’s regular purchases of uranium will also be short dated, meaning they will require delivery within 1-2 months, meaning there will be a constant bid in the uranium spot market for whatever is available at that moment. There hasn’t been true price discovery in the uranium spot market for years, because utilities have stayed out of it wherever possible. But this is going to change and with this price discovery, we might get to see just how thin the spot market is. Remember that when Denison brought 2.5Mlbs in March, they required 17 separate transactions and many of these transactions were long dated into the future.

With Sprott’s ATM capability, it will result in all physical uranium trusts trading a lot tighter to their NAV and is the likely explanation for today’s drop from 259p to 245p, as the premium to NAV in YCA is surrendered. This might be a painful drop today, but investor’s focus should be firmly set on the longer term implications of Sprott’s takeover of UPC and the listing of SPUT on the NYSE later on this year.

My price target here firmly remains at 700p.

SPUT first trading day - link: https://money.tmx.com/en/quote/U.UN