Free Weekly Email 8.27.24

AIA Weekly Video 8.24.24

Kazatomprom will cut 2025 uranium production by 17%. This news could re-ignite the uranium bull market.

Uranium Markets: A Drama in the Making

This article was written before the Kazatomprom announcement of uranium production.

Mark your calendars: August 23rd promises to be a pivotal day. That's when Kazatomprom, the world's leading uranium producer, will announce its half-year financial results and, more crucially, offer guidance for its 2025 production plans. This announcement is set to reverberate through the uranium markets, given Kazatomprom's considerable influence. In 2022, Kazatomprom produced just under 55 million pounds of uranium - almost 45% of the world's supply.

Our conversations in Almaty, coupled with Kazatomprom's cryptic remarks, suggest that production shortfalls  are not only due to sulfuric acid shortages but also stem from development problems at Kazatomprom's massive Budenovskoye 6 and 7 greenfield projects. The Budenovskoye projects are surrounded by controversy and were originally projected  to ramp up and produce  13 million pounds of uranium by the end of 2025, representing almost 20% of Kazatomprom's output. However, the projects have reportedly been plagued by construction delays and are significantly behind schedule.

G&R was spot on with their analysis of Kazatomprom’s production woes. The company announced it would miss 2025 production by 17% and refused to give 2026 production guidance.

How many uranium mines are under development?

I am becoming more interested in actual uranium producers who can raise production in the near term.

Immigration, World Poverty and Gumballs

Whenever the issue of immigration comes up, show people this video. We can't solve world poverty by allowing everyone who is poor to come to the west. The numbers are staggering.

Milton Friedman on Wage and Price Controls

Steve Blumenthal comments on price controls:

The idea of the government implementing price controls on food and other consumer goods is a fundamentally flawed and dangerous economic policy that has failed repeatedly throughout history. Price controls disrupt the natural dynamics of the free market. In a competitive, free market like the agriculture and food industries, prices rise and fall based on supply, demand, and companies competing to offer the best value to consumers.

However, when the government steps in and artificially sets price ceilings, it throws off this delicate balance. Companies will stop producing as much if they can’t charge what they need to maintain profitability. This leads to shortages and the reemergence of higher prices in a more distorted way. 

The Milton Friedman videos are excellent. Do I agree with everything Friedman says? No, but I think he is spot on most of the time. The video from the Donahue show is the best, in my view.

We’re number one!

One of the reasons I am very bullish on gold and hard assets.

That’s it for this week.

To your investing success,

John Polomny

This service and my work are reader—and listener-supported. The best way to support me is to follow me on Substack, YouTube, and X. You can also buy me a coffee if you are inclined.