Justin Huhn: The Unstoppable Momentum of the Uranium Market

Tom welcomes back Justin Huhn, founder of the Uranium Insider Newsletter, to discuss the unusual dynamics of today's uranium market. Huhn points out the current lack of secondary supplies which has led to a significant deficit expected to last until large projects become operational in three to five years. These multiple buyers vying for limited supplies should keep prices high for some time. In Kazakhstan, Kazatomprom continually drills to maintain crucial uranium production levels. However, the industry faces a notable shortage of skilled workers, a problem not confined to Kazakhstan, but also affecting the United States and Canada. The potential ban on imports of Russian uranium into the US, currently awaiting Senate approval, could lead to further price increases if passed. Huhn also discusses China's considerable impact on the uranium market. Despite having a large geographic area, China lacks substantial uranium resources. With 55 gigawatts of nuclear capacity and 26 reactors under construction, the country's domestic demand far surpasses supply. Therefore, China seeks international contracts, recently signing substantial deals with KazAtomProm, the world's leading uranium producer. Unlike Western strategies, China aims for a stable long-term supply strategy, making it unlikely they will become uranium sellers, despite owning the world's largest uranium inventory. Huhn notes that while nuclear utilities might not like escalating uranium prices, they can transfer these costs to rate payers as uranium is a minor faction of their operating budgets. High uranium prices are beneficial to the industry and are expected to continue due to growing demand and supply constraints. The chance of the current market creating overheating on underlying assets remains uncertain. However, Huhn expects profit-taking after gains. The discussion concludes with predictions of a continuing bullish market and rising prices due to looming demand. The belief is that despite potential roadblocks, the industry must address the increasing demand for nuclear energy, underscoring the robust health and growth of the nuclear industry. Time Stamp References:0:00 - Introduction0:39 - Unprecedented Dynamics3:22 - Inflation Adjusted Chart7:30 - New Uranium Projects10:42 - Mine Development Time15:00 - KazAtomProm Production17:30 - Risks Both Left/Right19:10 - Russia Imports/Sanctions22:40 - Financial Mkt. Impacts26:10 - Price Stability Importance31:00 - Nuclear Plant Restarts31:53 - Contracts & Deliveries36:26 - Chinese Market Impacts41:03 - Current Equity Conditions46:42 - Thoughts on Cameco48:28 - Wrap Up Guest Links:Website: https://www.uraniuminsider.com/Newsletter: https://www.uraniuminsider.com/newsletterTwitter: https://twitter.com/UraniumInsiderYouTube: https://www.youtube.com/@UraniumInsider Justin is the Founder and Publisher of the Uranium Insider Pro Newsletter. Through the combination of rigorous fundamental analysis and Justin's thorough understanding of technical analysis, determinations are made for select companies to be included on Uranium Insider Pro's "Focus List," as well as the most opportune times for entry or exit. Justin is frequently asked to offer his commentary on various media forums, including Crux Investor, Smith Weekly, Palisades Gold Radio, Mining Stock Education, and Mining Stock Daily. He also regularly participates in the post-earnings commentary that is broadcast immediately after industry majors release quarterly earnings.