Uranium Stocks Are Soaring... Time to Sell?

Most of the momentum behind rising uranium prices at the beginning of the pandemic was related to supply chains. Over the last few months, however, the driving force has been soaring energy prices and government commitments to restart idle nuclear power plants. [Outsider Club Header] Sep 07, 2022 By Luke Burgess for the Outsider Club Uranium Stocks Are Soaring: Time to Sell? Uranium stocks are having a bit of a moment. The COVID-19 pandemic kicked off a rally in uranium prices that continues yesterday. As reported by major uranium producer Cameco (NYSE: CCJ), prices for the nuclear fuel have more than doubled since February 2020. [gtrg][gtr]Source: Cameco As a result, shares of uranium miners like Cameco have ticked up over the past several months. The Global X Uranium ETF (NYSE: URA) is up 136% since February 2020. The smaller Sprott Uranium Miners ETF (NYSE: URNM) is up 249% over the same time period. Meanwhile, CCJ itself has gained 240%. Cameco (NYSE: CCJ)[gtrgg] Smaller uranium mining stocks have done even better. In February 2020 Energy Fuels Inc. (NYSE: UUUU) was $1.18 at the beginning of the pandemic. Today the stock is at $7.45, a 531% increase. Meanwhile, Uranium Energy Corp. (NYSE: UEC) was a $0.60 stock. Today it sits at $4.45, a 641% gain. Uranium Energy Corp. (NYSE: UEC)[gtrggh] Most of the momentum behind rising uranium prices at the beginning of the COVID pandemic was supply chain-related. Over the last few months, however, the driving force behind uranium has been rising energy prices and government commitments to restart idle nuclear power plants. Endless Energy Perfected at Last What you’re looking at is NOT oil, ethanol, or some crazy biofuel. But in the near future, every skyscraper, factory, truck, plane, train, bus, and boat could be powered by it. It’s so cheap and efficient it could wipe out every other conventional fuel source we use today... And hand early investors a shot at world-altering gains. [See the breakthrough for yourself here.]( Back in May, Japan’s Prime Minister Fumio Kishida said the country would begin to restart idled nuclear plants in an effort to combat soaring energy prices. Japan dialed back its dependency on nuclear power following the 2011 Fukushima disaster but is now committed to restarting nuclear production. Ten of Japan’s 33 operable nuclear reactors have already been restarted and the country plans to restart another nine by this winter. Now France is doing the same thing. France relies on atomic energy more than any other country in the world, with about two-thirds of the nation being powered by nuclear reactors. However, 32 of the country’s 56 nuclear reactors — all operated by the country’s electricity giant, EDF — have been shut down for various reasons. Nevertheless, the French minister for energy transition said last week that EDF will restart all its nuclear reactors by this winter in an effort to help ease the burden of rising energy costs. It’s all very exciting for uranium… until you consider the economics of operating a nuclear power plant. Now, I’ll be honest with you, I have never financed, constructed, and operated a nuclear power plant. So I’ll be relying on information from the World Nuclear Association — which, incredibly, has a lot of information about the economics of operating a nuclear power plant. According to the World Nuclear Association, most of the cost of operating a nuclear power plant comes from capital costs. That includes site preparation, construction, manufacture, commissioning, and financing. They note capital cost accounts for at least 60% of the levelized cost of electricity (LCOE) for a nuclear reactor. The next-biggest cost is going to be plant operating costs. However, the actual fuel cost (the uranium) is only a fraction of the plant operating costs. In total, the WNA says fuel costs for nuclear plants in the U.S. account for about 23% of LCOE. But that’s kind of the point. One of the big upsides to nuclear power plants is the cheap fuel. Even though the price of U3O8 has doubled in the past two years, it’s still only $50 per pound. “Doubling the uranium price (say, from $25 to $50 per pound U3O8),” according to the World Nuclear Association, “takes the fuel cost up from 0.50 to 0.62 cents/kWh, an increase of one-quarter, and the expected cost of generation of the best U.S. plants from 1.3 cents/kWh to 1.42 cents/kWh (an increase of almost 10%).” Will This Weird Device Replace the iPhone? Apple CEO Tim Cook is about to release his legacy maker.This device is the culmination of Apple’s ultimate trillion-dollar visions...And it could make a swath of investors extremely rich.But this has nothing to do with buying shares of or trading options on Apple. [Click here]( for the shocking details. What I’m getting at here is nuclear facilities don’t spend a lot of their budget on uranium. Of course, it’s a critical component in operating a nuclear power plant. But if you want to profit from a resurange in nuclear power, it seems better to get into financing or constructions of the power plants rather than the fuel itself. However… Cameco (NYSE: CCJ) Global X Uranium ETF (NYSE: URA)[gtrgghg] Sprott Uranium Miners ETF (NYSE: URNM) [gtrgghgg] You can’t argue with results. Jesse Livermore, one of the first great stock traders of the early 20th century, once said, “Markets are never wrong; only opinions are.” Well, I don’t mind being wrong. And it’s my opinion the uranium rally probably won’t last long. We’ve seen the interest in uranium investing ebb and flow going all the way back to the 1950s. Right now the tide is high. If I owned uranium stocks right now, I’d probably be looking to sell. Until next time, [Luke Burgess Signature] Luke Burgess An Electric Grid Russia Can’t Touch! Russia and domestic terrorists are threatening to attack our electric grid as we speak. This is a major problem because not only is our century-old electric grid overdue for an upgrade... But it’s also become vulnerable to severe weather, physical assaults, and now cyberattacks. However, there’s one project in the works that can put a stop to this... I call the project 5G-Volta, and it’s the BIGGEST 5G story you’ve ever seen. Because for the first time in history, it will completely change the way the grid is designed. 5G-Volta will link together power plants, solar panels, wind turbines, electric vehicle charging stations, batteries, and end users, and adjust the distribution of electricity... Which will save energy, reduce losses, and enhance the reliability of the grid! Not to mention, it’s capable of handling 1,000 times the capacity of our current electric grid... And will protect us from any foreign or domestic attacks. But the best part? The company behind this technology could be your shortcut to tremendous wealth... [And by acting on this right now, you could pocket four-digit gains in the coming months!]( Follow the Outsiders [Twitter]( | [Facebook]( | [LinkedIn]( | [YouTube]( This email was sent to {EMAIL}. You can manage your subscription and get our privacy policy [here](. Outsider Club, Copyright © Outsider Club LLC, 3 E Read Street Baltimore, MD 21202. 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