#Niger 🇳🇪 $GLO
US 🇺🇸 plans to resume partnership & development with Niger.
Niger coup leaders agree to transition terms.
#Uranium at $86lb to $88lb...
Happy Friday 🐸✌️
🧵1/Weekend #Uranium Research!
A correlation heatmap analysis (monthly returns 2020-2023) identifies 3 distinct clusters within the uranium sector:
▪️ Producers, Near-term Producers & Athabasca Developers
▪️ US & Niger Developers
▪️ $DYL & $PENMF
What does that mean?
I've mentioned this in a few recent interviews/podcasts...this market is thinner than it has ever been...not just since I've been following it since 2016. Spot market volumes have declined month-over-month since July, yet the price is up ~45%. Incredible.
As fund flow data is lagging and we've seen a bullish hammer candle on the weekly close of the #uranium UXC futures, there's a high probability for a significant sentiment reversal the coming week(s)
Spot price & fund flows took a breather here, preparing for the next leg up.
#Uranium bull last run out was based on perception that there wasn't going to be enough supply...
Fast forward 2023 and there isn't enough supply.
I'm looking forward to what comes next in the beaten down #U equities, they should knock their 2021 baby bull highs outta the park!
We're in "what feels like the early stages of a #nuclear renaissance,” @uraniuminsider's Justin Huhn told @alex_harring
"There’s huge upside for the commodity itself. The equities are massively discounted.”
via @CNBCPro https://t.co/4em1tsVSel #uranium $URA $URNM
In summary, they are preparing for growth. Uranium sales will continue ⬇️, tails assay will continue ⬆️ (to decrease SWU requirements (see picture)), they are increasing their capacity, but they want more contracts. Much more uranium will be required to achieve their goals.
Nuclear uses the least land and raw material per unit energy
But we’re afraid of it, so we prioritize sources that require more resources
In time this fear will subside, and our relationship with nuclear will sweeten. This will be reflected in the economics