Citigroup starts Yellow Cake with 'buy' - price target 750 pence |
 Quarterly Update today:
Andre Liebenberg, CEO of Yellow Cake, said:
"Though the uranium spot price remains subdued from its January highs, we remain very optimistic about the medium term sector fundamentals. Demand for uranium is growing driven by improving awareness of the need for nuclear power as part of the future energy mix, while nuclear is also seen as critical to supporting the artificial intelligence boom and the development of hyperscale data centers. Microsoft, for example, recently signed an agreement with Constellation Energy to purchase energy from the Three Mile Island Unit 1 nuclear plant in Pennsylvania. Amazon announced three new agreements to support the development of nuclear energy projects, including the construction of several new Small Modular Reactors. We are also seeing a fundamental global shortage of uranium while in the US governmental actions including the total ban on Russian nuclear fuel imports, subject to potential waivers through 2027, and Chinese uranium products being added to the increased import tariff list potentially impacting availability. These factors have exacerbated the already tight global uranium supply shortage, with primary mine supply of 140 million pounds some way behind fast-growing global annual demand of over 180 million pounds to fuel the world's nuclear reactors. We believe this presents an excellent opportunity for investors to increase their exposure to the commodity."
Read on X earlier that a broker had initiated YCA as a Buy. |
Solid quarterly update |
And that Cameco has sold forward a lot of production at lower prices so less upside but less sensitive. Their Westinghouse purchase was nicely timed and should do very well over the coming decade. |
Thanks for that Kiwi. Appreciated |
YCA, broadly speaking tracks the spot price of Uranium, but the discount to NAV can move which means that doesn't always work.
Cameco is a complex company. Primarily it's a miner and you might expect miners to have a geared response to the spot price. But Cameco also has exposure to conversion to UF6 and owns nearly half of Westinghouse which complicates matters.
It's also the largest cap western company with exposure to the nuclear cycle so is favoured by international institutions because of its liquidity. |
I think YCA rose by about 10%. I wonder why the divergence. |
Yes, CCJ up over the last month. Needless to say, I didn't buy at the bottom. But I expected the two to move in tandem. |
Cameco up over 40% in the past month? |
Bought Cameco at the same time as YCA. Why is it doing better than this. Both holders of Uranium for nuclear? |
Significant volume today also of1.58m v 3m AVG volume of 886k. |
The stars are aligning. |
https://www.aboutamazon.com/news/sustainability/amazon-nuclear-small-modular-reactor-net-carbon-zero |
"Amazon has made a direct investment, the first of its kind, into building nuclear reactors to power AI.Amazon is investing in X-Energy and joining Washington-based nuclear operator Energy Northwest to deploy nuclear energy in a planned 5 GW fleet by 2040."https://x.com/energybants/status/1846533369057743097?s=19 |
Google inks deal with nuclear company as data center power demand surgeshttps://www.cnbc.com/2024/10/14/google-inks-deal-with-nuclear-company-as-data-center-power-demand-surges.html?__source=androidappshare |
From John Quakes tweet "It's been reported that Goldman Sachs reactivated its Uranium trading desk last week, buying lbs in the Spot market"https://x.com/quakes99/status/1845515777820217747?s=19 |
The shrinking of the discount to NAV of uranium equities like YCA and GCL is one of the strongest indicators of the direction of travel in these uranium investments going forward. |
The discount to NAV is the lowest it's been for some time.
Is there enough momentum to take it to a premium so they can exercise this year's option with Kazatomprom? |
looks as though all uranium stocks up today, cameco, yca, leu etc |
Up on decent volume today. Has the worm finally turned? |
Ker-pow!💥29354; #Russia's President Putin on a live TV broadcast suggests that Russia should retaliate against foreign markets limiting exports to Russia by limiting its own foreign exports of strategic raw materials, lists #Uranium as his first choice. |
Great article here that sets out the uranium situation very clearly. |
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