The current agreement with Russia to decommission nuclear weapons and sell the material into the market for US nuclear plant consumption expires in June of this year. I read recently that this program supplies the US with 50% of its annual uranium consumption. It is doubtful, given the current state of US/Russia relations, that this program will be continued by Putin's government.
I haven't seen this event mentioned in the mainstream press or from any analysts in the sector. My view is removing this supply will result in much higher uranium prices.
Any insights into this event? Ideas on the impact on prices and supply?
My expectation is we're going to see a rally in the shares when the realization that supply constraints are coming. Given this, among other factors, I think CCJ is 'cheap' here and should be accumulated.