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Cameco Corporation (CCJ)
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Spot market with SPUT: Recap: Frontrunning the launch of the Sprott Physical Uranium Trust (SPUT)
TORONTO, May 26, 2021 /CNW/ - Uranium Participation Corporation ("UPC" or the "Company") (TSX: U) is pleased to announce the closing of its bought deal equity offering of 15,481,300 common shares of the Company (the "Shares") at a price of $5.20 per Share, which included the full exercise of the over-allotment option granted to the Underwriters (as defined below), for total gross proceeds of $80,502,760 (the "Offering"). --> 80,502,760 USD
June 16, 2021, Yellow Cake plc (AIM: YCA) ("Yellow Cake" or the "Company"), founded and established by Bacchus Capital to be a specialist company operating in the uranium sector with a view to holding physical uranium for the long-term, today announces its intention to conduct a non-pre-emptive placing of up to 25 million new ordinary shares in the Company at the Placing Price. The Placing Shares will be placed at a fixed price of £2.50 per Placing Share. --> 62,500,000 GBP = 88,289,000 USD
And Probably some additional capital raise accessible for retail investors potentially adding +-4,000,000 EUR = +-4,900,000 USD.
The uranium purchased with those funds will partially come from Kazatomprom at 32.23 $/lb U3O8 and the rest directly through spot purchases. Remember that the main part of the uranium bought by Yellow Cake through Kazatomprom earlier this year would eventually come from the other uranium spot suppliers because Kazatomprom had to buy uranium in the spotmarket to fullfil this sell to Yellow Cake.
I wouldn’t be surprised if this time again Kazatomprom would buy some uranium in the spot market to fullfil this new sell to Yellow Cake.
Uranium Royalty corp
May 20, 2021 – Uranium Royalty Corp. (TSX-V: URC, NASDAQ: UROY) ("URC" or the "Company") completes the C$37 million financing package comprised of a C$25 million bought deal offering and previously announced C$12 million margin loan facility.
The Company intends to use the net proceeds of the Offering to fund future purchases of royalties, stream and similar interests and purchases of physical uranium, and for working capital.
A think that URC will use a part of that money to buy additional physical uranium through Yellow Cake before the launch of SPUT. Uranium that Yellow Cake will buy in the spotmarket for URC.
My own conclusion:
80,502,760 USD (Uranium Participation) + at least 24,000,000 USD of the 88,289,000 USD (Yellow Cake) and probably a couple millions of URC impacting the spotmarket directly = +-110,000,000 USD that will impact the spotmarket directly BEFORE THE LAUNCH OF SPUT!!
That’s +-3,450,000 lb purchased directly in the spotmarket BEFORE THE LAUNCH OF SPUT, meaning before September 2021 (takeover of Uranium Participation completed somewhere in July, NYSE listing and ATM in place by “the end of September 2021” (imo))!!
That’s a lot of spot buying in a short time periode.
Add to that the uranium that:
- Cameco needs to buy in the spotmarket to fullfil their deliveries to customers (A couple millions lb in 2021)
- Kazatomprom could buy in the spotmarket to keep their operational inventory at an acceptable level after their sell to Yellow Cake.
- Carry traders still have to buy to fullfil their short term deliveries to utilities.
I suggest to those investors not fully positioned yet, to buy the uranium companies you like, to hold on to it (,to not use stoploss orders) and to be patient.
$CCJ $UUUU $PALAF $GLATF $DNN
$UUUU $URG $PENMF $CCJ $URA
It has been confirmed. The purchase of U3O8 from US origin in 2021 will take place!
Those 75 million USD/y purchase would be an additional cash inflow for Energy Fuels, URG, UEC, Encore Energy, ...
But the 9,7 billion USD support for US nuclear reactors is so much bigger.
75 million USD for a purchase of U3O8 at 50 USD/lb represents only 1,500,000lb U3O8. So it is interesting for those companies selling U3O8 to that reserve, but not so important at global supply and demand level.
While 9,7 billion USD could help safe a couple US reactors from premature closure.
Quakes99 a couple weeks ago: "Bank of America estimates that delaying 2021-2030 planned closures of US Nuclear plants as a result od strong bipartisan and federal government support would increase uranium demand by 26,000,000 lb U3O8 and drive US fuel buyers to agressively move forward on major new contracting"
If you look at the situation more closely in fact:
1) Peninsula Energy doesn't need this additional purchase from the US government because they already have LT contracts with US and European utilities in place from now till past 2030. In fact they have to buy in the spot at the moment, which they already did for delivery in 2021 and in 2022! And now, a couple weeks ago they announced the purchase of an additional 300,000lb for delivery in June 2021 (ahead of SPUT) so that Peninsula Energy would be 100% covered with enough U3O8 until early 2023 (if my estimates are still correct). I think that Peninsula Energy is not even going to answer to the RFP from the government, because selling U3O8 to the government would put them in a more unconfortable situation for their LT contract deliveries in 2022.
2) UR-energy doesn't need a lot of money (only 14 million USD) to restart the production in 6 months time. A sell of a couple 100,000 lb to the US government would be nice and it would be 100% covered with U3O8 stockpiles UR-energy has, but it's not really a problem if they wouldn't get this government purchase.
3) Energy Fuels today is much more than only an uranium producer. Energy Fuels is becoming a key player for the USA in High value REE, Uranium, Vanadium and clean up services for the clean up of depleted old uranium mines in their region. They already got subsidies for the build out of the REE process. A sell of a couple 100,000lb to the US government would be nice, but Mark Chalmers already told the public they wouldn't sell their existing U3O8 stockpile at the spotprice of today. They see a much higher value in it for the coming years and eventually Energy Fuels and UR-energy will have their piece of uranium demand. (I have a big position in Energy Fuels, and I'm not selling, In a couple years from now they will most probably be the biggest seller of high value REE to the US consumers (EV, windfarms, US army, ... ))
4) Uranium Energy Corp on the otherhand bought those U3O8 (from US origin) in the spot market to be able to sell it to the government. They need that government purchase for their high salaries. Off course they have a back up plan. They can sell their pounds to URC in the future.
But what is the main purpose of that U3O8 reserve? Saving the US uranium production that remains in the USA today. UEC doesn’t have specialised workforce to be “saved” because they don’t have that workforce, Energy Fuels and UR-energy do. Same for near term uranium production. UEC doesn’t have near term production, Energy Fuels (quick restart to 2,000,000lb/y with only +-15 million USD CAPEX) and UR-energy (quick restart in 6 months time with only +-14 million USD CAPEX) do.
The sell of pounds to the US government in fiscal year 2021 will happen, and the only two that really have the right conditions in 2021 to get it imo are Energy Fuels and UR-energy.
Fyi. I own a stake in Energy Fuels, UR-energy, Peninsula Energy and a small position in UEC
I wish these CEO,s get together and form a cartel ,and dont sign any new long term contract till the price hits 60$ . the price has been manipulated down long enough,
$CCJ $URNM $URA $PALAF $GLATF
Here a much better explanation:
China nuclear reactor drama less concerning than politics at play | Nuclear Energy News | Al Jazeera
Conclusion: There isn’t an imminent disaster. Just a known issue that can be solved when fuel rods are replaced with new ones.
Note: this has been confirmed by a couple nuclear power specialist not involved in this article.
It's amazing how some investors overreact to news...great buying opportunity!
Fake news = Discounted shares...love it
I am backing up the truck. This is a non event. want to buy a blue chip stock at a 10% discount? then all aboard.
China just admitted to fuel rods being damaged at one of their nuclear reactors - remember when they said everything was fine?
$URG $DNN $CCJ $NXE $UEC $UUUU
hitting key support at the 50ma and long trend line. hopefully we bounce off this next week!
Imgur: The magic of the Internet
Imgur: The magic of the Internet
The U.S. news network reported that Framatome, the EDF unit which designed the reactor at the plant and remains involved in its operations, had warned of an "imminent radiological threat."
EDF said the build-up of noble gases, which it said had affected the primary circuit of reactor no 1 of the Taishan plant, was a "known phenomenon, studied and provided for in the reactor operating procedures."
State-run CGN, the majority owner of the joint venture, said operations at the nuclear power station met safety rules and the surrounding environment is safe.
"Regular monitoring data shows the Taishan station and its surrounding environment meet normal parameters," it said in a statement on its website late on Sunday.
I'm in nuclear and agree with backing up the truck to 10% discount.
Nuclear is the future and this is where this stock is heading long term
what is happening, I am in @ 21
Lets buy all of their shares mtf
The Chinese say the reactors are operating normally.
$CCJ $DNN $UUUU $URG $GLATF
Bye bye weak hands.
Correction on sensational news from CNN :-)
There is indeed a problem at that Chinese reactor that can be solved. But Framatom needs a waiver from the USA before starting to solve the problem because 70% of that reactor is owned by CGN
To those that were waiting for a dip to add to their uranium positions. There it is.
$URNM $URA $CCJ $PALAF $GLATF
Here is my post “Spot market with SPUT: 3rd preliminary post: frontrunning the start of SPUT and why will SPUT operate in a much better environment than the environment in which Sprott Physical Silver Trust operates today?”
You don’t need to register on Reddit to get access to that post, just look at it via google.
Did I buy the dip? Yes.
This was a gift yesterday.
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