Uranium is joining the commodity surge


Day Traders Are Driving Uranium Prices Higher WSJ https://www.wsj.com/articles/day-traders-are-driving-uranium-price-higher-11634637082

Eugene Van Den Berg, Oct 2021

From the above article:

“Enthusiasm from individual traders is reshaping the market for nuclear fuel that generates a tenth of the world’s electricity and sending uranium-linked stocks higher. After languishing for a decade after the Fukushima disaster led Japan and Germany to close nuclear reactors, spot uranium prices have shot up to $47.10 a pound from $32.25 at the start of August. They remain below their peak of $137 in 2007”

With the current energy crisis and previous Renewable Energy (RE) transition plans to make a “quantum leap” in the short-term, no that’s wrong. It’s actually “trying to take a shortcut on a global scale to chase an ideology, the world has “injured” itself in doing so”. As we learn in school solving the math problem does not work so well trying to take shortcuts. We may get to the wrong answer, and still get marks for the steps shown in solving the Algebra equation. Let that sink in then you may appreciate that the race to “prefect ESG” creates problems that are best avoided.

Germany wanted to cut nuclear and replace it with RE wind and solar. It did not quite work out as planned.

Other countries are running flat out a stampede to instantly move from coal-fired plants to RE wind and solar, having disregard that energy transition will have better outcomes when executed in a structured and organised fashion. Transition from coal to Natural Gas and Nuclear whilst, alongside that, the challenges around RE wind and solar intermittency is scienced to perfection, including solving battery storage and fast charge challenges for Electric Vehicles, will ensure smoother long-term outcomes.

To top it all off, as we transition, all should be engaging in planting trees and replace forests being destroyed in a rehabilitation ratio of [1:10]

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Eugene Van Den Berg

Eugene is an accomplished Analyst, Accountant, Controller, CFO, and Corporate Finance expert with many years of diverse finance and accounting experience across different industries. He is a knowledge- and information worker with a passion to solve complex financial management problems and processes. Eugene is passionate about finance and economics and enjoys blogging about interesting economic aspects of current times