f-UUUU-el of the f-uuuu-ture
I talk through Energy Fuels
Dear reader,
This covers my 17th idea - Energy Fuels Inc. - Uranium, Rare Earths, Vanadium and Heavy Mineral Sands
Regards
The Oak Bloke
Disclaimers:
This is not advice, make your own investment decisions.
Micro cap and Nano cap holdings might have a higher risk and higher volatility than companies that are traditionally defined as "blue chip"
https://www.reuters.com/markets/commodities/energy-fuels-navajo-nation-sign-uranium-ore-transport-agreement-2025-01-29/
I was interested to hear your views on Energy Fuels, which is the second largest holding in my portfolio. I agree it’s a misunderstood company as most people who invest in Uranium seem to be looking at ‘pure play’ U companies.
Just a couple of observations. Although you touched on energy security, I don’t think the bifurcation (or arguably, the trifurcation) of uranium supply was taken into account in the explanation of your thesis. Also the cost comparison of wind, solar and nuclear isn’t valid (your comparing apples and oranges) because you can’t run an electrical grid on pure wind / solar. Nuclear is the only green base load option - this is worth a listen https://podcasts.apple.com/gb/podcast/sprott-radio/id1552721685?i=1000659418796
Lastly, the price of U is not reflected by the spot price. Energy Fuels have agreed contracts at a price of $100. Nexgen have recently signed contracts with US utilities at varying price points — ranging from US$80 to US$175 per pound.
The above are observations, not criticisms and I want you to know I appreciate both your analysis and the fact you share your research.
If you fancy dipping your toe still further in the U company pond, suggest you check out District Metals (DMX). Lots of research available on the company and uranium in general on the DMX thread on CEO.CA
Regards
Steve