Uranium is coming out of a brutal bear market and anyone whose been involved in the space for any amount of time will tell you that uranium bear markets lead to violent bull markets, suggests Gerardo Del Real, a specialist in resource stocks and editor of Junior Mining Monthly.
I believe we’re in the first inning of what will result in a historic uranium bull market. One of the best ways to gain exposure to a better uranium market is by finding companies that can produce at a low-cost, are cashed up and have a track record of success.
Energy Fuels (UUUU) provides three distinct advantages.
1) It’s the #1 uranium producer in the U.S.
2) It’s the only vanadium producer in the U.S.
3) Its assets are low-cost and scaleable.
Uranium is poised to benefit from the electrification of everything. Global electricity demand is forecast to grow approximately 50% over the next two decades and I believe that to be a conservative estimate.
Japan has nearly 10% of the world’s reactors but restarts have been slow and most are still not operating. China — the commodity elephant in the room — only generates 4% of its power from nuclear but has a target of 20% non-fossil fuel by 2030. That’s a lot of new reactors and pent-up demand will underpin prices for at least a decade.
Vanadium is used in steel, titanium and other alloys. It is also a strategic mineral for defense applications. Energy Fuels not only provides exposure to both uranium and vanadium but is well financed with over $50 million in working capital. Expect a big year from uranium and expect Energy Fuels to deliver big gains to shareholders.
