⛏️ Which US uranium miner will win?

Greetings Contrarian, 

This is The Next Big Rush, your daily drop of mining / energy news.  Where we come together  and explore alternative investment thesis. 🪃

Dear Ubets,

Well, first  we need to lay all the cards on the table. At The Next Big Rush, US uranium is very close to our hearts for many reasons that make us biased.

1- We believe the change in sentiment in the US to pro-nuclear will reverberate across the whole fuel cycle, and although there are voices from the Energy Secretary’s offices claiming they’ll always be able to rely on Canadian supplies, we think US investors will put money in their backyard first. 

2- We have much to gain from companies that are based in the US, including marketing contracts, personal holdings and a soon-to-be-announced board position. 

As you can see, we’re all over this thesis. 

But there are obstacles we must tackle. 

1- Not every jurisdiction in the US is Wyoming. Some, such as New Mexico, have very anti mining sentiment, so look where you’re treading. 

2- The US has mostly modest lower-grade resources, but with decent access and typically not too deep. 

3- The grade + permitting and licensing + labour costs makes it not the cheapest pound in the world, but a lot of the resources are just sitting there, waiting for higher prices, so path to production may not be as long as anticipated. 

4- As always, team is an important factor here. Are the management, sorry to say it, politically / technically skilled enough to get something off the ground? Are they open to M&A opportunities? 

At the end of the day you may have permitted projects that come into production but can’t be sustained long-term, and low grade projects that will sell for eye watering prices. 

Winning has everything with your timing, not necessarily the company succeeding as a business. If everyone knows company A has a high chance of succeeding, it may be much closer to being priced to perfection already. 

Always ask yourself “What do I know about this company that most people don’t see yet”? Come up with an answer and you have an edge. 😉

Happy speculating,

The Editor

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational/entertainment and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.