Actionable Intelligence Alert Weekly Free Email 2.25.24
Uranium supply, will miners meet their forecasts?
Juice (Episode 1) - Texas Blackout
If you have been reading my work for some time, you will likely already know most of what is covered in these videos. Nevertheless, the series is well-produced and is made in (5) twenty-minute episodes. It will give most people who know nothing about energy a great introduction to the current challenges regarding energy.
Uranium
Uranium Projects Timeline
H/T
I question how likely it is that all of these projects will be on time and how many will reach their projected production targets. Expect things to take longer and cost more. Mining is not easy.
Sprott Capital Partners rerates uranium stocks
The linked report also calls for $150/lb uranium in 2024.
There is no endorsement of the conclusions. This is for your review only.
WNA underestimating uranium demand and potential supply gap
John Quakes, who catalogs uranium news on “X,” had an interesting thread where he dissected the recent World Nuclear Association uranium requirements for 2024.
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There has been quite a bit of volatility in uranium stocks this last week as the spot price dropped below $100/lb. In my view, this is just the volatility one has to deal with as the uranium bullmarket plays out. The fundamentals continue to get better, and this is the best resource opportunity I have seen in my investing career. We have a long way to go, so I would not let short-term volatility shake me out of this trade.
Are you curious about how I am investing in the uranium market?
Global Manufacturing Turning Up
To refresh everyone’s memory, a reading above 50 indicates manufacturing is expanding. Why do you care? Because expanding manufacturing requires more raw materials. There is a definite correlation between rising PMIs and commodity prices.
With more and more central banks cutting rates, we are likely entering another upturn in global liquidity, which will likely spill over into increased economic activity. This will increase demand for raw materials and cause prices to rise. Because of underinvestment in new supplies, this could lead to outsize moves in some commodities.
Goehring & Rozencwajg
G&R published their Q4 2023 commentary; registration is required.
Here is a snippet from the commentary
“In an unexpected move, Aramco, the Saudi national oil company, announced the Kingdom had directed it to maintain its “maximum sustainable crude capacity” at 12 m b/d and to abandon its longstanding plan of increasing production to 13 m b/d. The financial press took the announcement to suggest the Kingdom expects oil demand will soon peak. “Saudi Aramco Drops Expansion Plans, Raising Demand Questions” ran a Bloomberg headline, capturing the zeitgeist.
We wonder if perhaps Saudi Arabia canceled their expansion plans because they worry that remaining recoverable reserves are now insufficient to support higher sustained production.”
Warren Buffett’s Tribute to Charlie Munger
Warren Buffett & Charlie Munger: 100 Years of Financial Wisdom in 4 Hour - Investing/Market Analysis
Four hours of investment wisdom
That’s it for this week.
To your investing success,
John Polomny
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