Justin Huhn: Uranium Bull Market is Breaking Out

Palisades Gold Radio, Released on 9/8/21

0:00 – Introduction
0:38 – Sprott SPUT
7:33 – Uranium Equities & ETFs
10:04 – Production & Demand
16:30 – Analysing the Market
23:38 – Valuing Uranium Miners
26:57 – SPUT & U.S. Listing?
30:06 – Utility Contracts?
37:21 – M&A Potential?
39:12 – Positive Momentum
40:19 – Wrap Up

Talking Points From This Episode
– Sprott’s major entry into uranium markets.
– The sentiment and market shift are very positive.
– Affect on utilities and potential for mergers.

Tom welcomes back Justin Huhn to discuss the increasingly exciting and rapidly changing uranium space.

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Sprott’s recent move into uranium is very bullish for the sector. There was a very sound thesis for investing in uranium before Sprott’s takeover of Uranium Participation Corporation. Sprott is a monster in the resource space and they are buying physical pounds. Over the last three weeks, SPUT has bought nearly five million pounds of uranium moving the market from $32 to $40. It’s likely they will have trouble sourcing supply as they will have bought most of the available above-ground supply.

Sprott has stated that they will not be selling but instead holding long-term. They want to create an extremely liquid vehicle that will attract large investors.

Sprott’s transparency is fantastic as they update their numbers on a daily basis. They’ve also established an excellent presence on Twitter which is great for uranium investors.

Uranium supply is quite inelastic and it takes considerable time for additional production. If you are interested in a highly speculative fervor of a market this may be the place for you.

There is some concern of pushback from utilities due to the rising price which could affect Sprott’s ability to be listed in the United States. However, Sprott should be able to overcome any objections.

Utilities aren’t keeping up with the markets in the same way as investors. They just have a calendar date when they need to secure supply. It may be difficult for utilities to negotiate contract terms if the price is moving rapidly.

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