US Government Hungry For Uranium | Resource Heads Ep. 22

This week’s Resource Heads #22 is mostly focused on uranium, and uranium news.

I was joined by James Sykes of Baselode Energy (of which I personally own shares) to talk about their recent hit, and by Dr. Quinton Hennigh to talk about the “nugget” effect in commodities and how to deal with it as an investor.

Uranium news from last week

• URNM closed the week down 2.61% at 58.69, and a weekly RSI of 39.50, which doesn’t suggest extreme oversold levels.
• Baselode hit near-surface mineralization, further supporting their Athabasca 2.0 thesis yet their stock closed the week almost 4% in the red.
• enCore Energy signed a contract with a US utility to deliver 600K lbs of U308 in 2025. I spoke to Paul Goranson last week. Watch the video here.
• Uzbekistan, which is an Asian country as large as the state of California, has declared a state of emergency in one of its regions and has cut off internet. Uzbekistan was the 5th largest supplier of uranium last year. They produced over 7% of the annual supply. The region that has been shut off is not the main uranium-producing region.
• The US government has issued an RFP (request for proposal) to buy 1M lbs of U308. The yellow cake has to come from a company that has produced uranium at a domestic uranium recovery facility at any time since 1 January 2009. The company doesn’t have to be in production right now, but they do have to have inventory already in storage at the Honeywell Metropolis Works uranium conversion facility in Metropolis, Illinois. The government might buy the 1M lbs U308 from up to four individual vendors. The deadline for proposals is August 1. The 1M lbs that they’re aiming to buy equals about 2% of the 2021 global supply. My friend Chapman told me that if there was no bull thesis for uranium last month, there definitely is one now.
• Segra Capital, led by Art Hyde has issued a newsletter in which they say that this is the best time to be a buyer of uranium that they’ve seen in a while. They’ll be (heavily) deploying capital soon.

Warning

Antonio Atanasov is not an investment advisor. Antonio Atanasov owns shares of companies mentioned in this publication. The information provided in this publication – and all other publications by Resource Talks – is impersonal in nature and meant for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple licensed, experienced, and qualified investment advisors. Get numerous opinions before taking your own decision in the end. The minimum risk on any investment mentioned in this publication is 100% loss of capital.

Shortly: you will lose all of your money and possibly most of your brain cells if you listen to talking heads on the internet. Especially if they have orange hair and no experience (me).

Readers are cautioned that this presentation likely contains forward-looking statements about expected future events and the financial and operating performance of any companies potentially discussed herein. Reality often varies from people’s expectations. Managements like over-promising and under-delivering. If a manager was speaking in here, beware. Readers are encouraged to read the Cautionary Note on Forward-Looking Information and to consult the Company’s Annual Information Form, which is available on www.sedar.com. Reading the full disclaimer on the disclaimer page on this website is mandatory.

Timestamps

00:00 Important warning
00:20 Gold & silver stocks crash; time to buy?
06:00 Uranium stocks keep falling
08:20 Baselode Energy hits near-surface mineralization
42:10 Uzbekistan declares state of emergency
45:50 US Government is hungry for uranium
48:10 Segra Capital (Art Hyde) buying uranium
50:40 What is the “nugget effect”?
01:13:00 Economic Calendar

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