Paul

🚨A key point that Cameco President & COO Grant Isaac makes in this excellent new interview focused on increasingly durable #uranium demand, is that securing the mined yellow cake #U3O8 for making #Nuclear reactor fuel is, generally speaking, the last thing on a fuel buyer's mind.🤔 👉There's still a historically large quantity of mined uranium that has yet to be purchased/contracted by utilities, which is why those who have been carefully following the uranium story know that prices will go far higher from here as that full-on buying demand finally comes the market.⚛️⛏️🛒🦖 Grant:🗣️"It all starts with where the demand is at. And what we're looking at is nuclear has found its way back into the policy toolbox in country after country. Those with reactors want to run them longer. Those who don't have them want to build them. The focus is really valuing the attributes that nuclear power brings. It's 24 hours. It's baseload. It's carbon free. It's energy security. It's climate security, and its national security. And even the timing of this conversation while the oil markets are being roiled by the war in Iran, it's just a reminder that energy can be volatile, but secure energy is a really important part of a modern economy and nuclear has found its way back in that policy toolbox and it just feels like the tailwinds are durable." "The nuclear fuel demand is just a robust continuation of reactors being saved, reactors going through life extensions and then of course the reactor new builds. And when we think about that fuel cycle, there's always a few things we have to remember. Number one is, you know, uranium is the product for which there is no substitute, but it tends to be the last thing that fuel buyers come and buy. So if you really want to know what's happening in on the demand side for uranium, just look downstream. And what do we see downstream? A very very constructive market. We see fabrication prices around the world have gone up. We've seen enrichment prices have gone up nearly to historic levels. Of course, conversion prices setting new records for conversion. All of that demand working its way back to uranium. It's a very healthy fuel cycle as that demand is required to come to the market in order to run those reactors. If if that demand doesn't come to the market, Corey, factories shut down and lights go out." 🛒 The thing is, Nuclear utilities normally sign a series of 4 different contracts to order reactor fuel🧾✍️⚛️🏭 starting with the fabrication of fuel assemblies filled with enriched uranium to be loaded into reactors 1⃣ then working backwards thru SWU for enrichment of UF6 2⃣ and Conversion of drummed U3O8 into UF6 3⃣ then finally, last of all, they sign contracts with producers to supply the required drums of mined #U3O8 yellow cake 4⃣ the last link in the contracts chain.🛢️🔗 In the past 3 years: 🚀Spot enrichment SWU has risen from around $60 to $230, UP +280%⏫ 🚀Long-term contract enrichment SWU has risen from around $60 to $177, UP +195%⏫ 🚀Spot Conversion has risen from around $18 to $64, UP +270%⏫ 🚀Long-term contract conversion has risen from around $18 to $55, UP +205%⏫ ⚠️ But, when we look at the changes to prices for drummed U3O8, the last link in the contracts chain, we see that the price wave created by Nuclear utility procurement at the enrichment SWU & conversion stages hasn't yet arrived.🌊🐌 In the past 3 years: Spot U3O8 has risen from around $50 to near $86, UP just +72%🤏😯 Long-term contract U3O8 has risen from $51 to $91.50, UP just +79%🤏😯 🧮If we take the price increases that have already materialized for enrichment SWU & conversion and apply those percentages to U3O8, both Spot and Long-term prices could rise +200% to over $250/lb⏫😊 U see, Nuclear utilities have been focused on getting all their enrichment & conversion contracts in place, driving up those downstream fuel stage prices, but they've been putting off buying the needed upstream drums of U3O8.🦥 When that long-awaited price wave finally arrives at the mined U3O8 stage then we should expect to see the Spot and Long-term U3O8 prices at least double and possibly triple from where they are today.💲🛢️⏫😊 Grant's been telling us for quite some time now that utilities have been holding off on their purchasing, hoping for lower prices.😴 When exactly that price wave is going to hit U3O8 we can't say with any certainty, but we know that utilities need to achieve "replacement rate" contracting levels to keep their reactors fueled, something they haven't been doing for the past 12 years, so that price wave is likely to come sooner rather than later.💲🌊 🚨The steadily rising Long-term price is a flashing neon warning sign to Nuclear fuel buyers📈💥 ⚠️ that producers are now expecting higher prices in their supply contracts. Waiting for lower U3O8 contract prices in the midst of a new global energy crisis, which is leading to soaring fuel demand, is not a viable strategy! Especially with China & India vacuuming up supply for their massive reactor build programs.⛽️🛒🇮🇳🇨🇳 🔥This new Iran war energy crisis should light a fire under fuel buyers to accelerate their procurement of mined U3O8 at much higher volumes than in the past 12 years, driving prices far higher in the months ahead.🔊🛒 Be positioned and ready.🌊🏄 Good luck with your research and investments!☘️🌈💰🤠🐂 Video: youtube.com/watch?v=Xjr3D-…

Boom!💥 With a gigantic wave of new enriched #Uranium demand on the horizon⚛️⛽️🌊 to fuel an accelerating #Nuclear Renaissance🏎️🔥 ConverDyn announces that it's looking at building a new US Metropolis 2.0 conversion plant to meet UF6 demand!🎆🇺🇸🏗️🏭🧑‍🏭🤠🐂 world-nuclear-news.org/articles/conve…