Connect with us

Hi, what are you looking for?

Smart Success Strategy – Investing and Stock NewsSmart Success Strategy – Investing and Stock News

Editor's Pick

Justin Huhn: Uranium Facing “Supply Black Hole,” Price Spike Likely

With aboveground mobile inventory now snapped up by the likes of the Sprott Physical Uranium Trust (TSX:U.U), Justin Huhn, founder and publisher at Uranium Insider, believes the uranium market has reached an inflection point.

‘The only inventory that exists right now in the world is strategic — this is held by nuclear utilities, and their inventories historically speaking are relatively low, and by nation states,’ he said, adding that he sees a ‘supply black hole’ emerging in the mid-term. That could have major consequences for prices moving forward, as well as for uranium equities.

Emphasizing the fragility of uranium supply, Huhn described it as ‘a big fat question mark.’

‘Finally we’re at this moment in time where the supply side has gotten so squeezed, for lack of a better word, that very, very low-volume demand in the spot market is moving the price significantly — and this is a big wakeup call to utilities,’ he said.

‘We don’t even approach anything resembling a balanced market until we’ve got Dasa producing, Honeymoon producing, all of the US in-situ recovery producing,’ Huhn continued, also mentioning Denison Mines’ (TSX:DML,NYSEAMERICAN:DNN) Phoenix deposit and NexGen Energy’s (TSX:NXE,NYSE:NXE) Arrow project. ‘Best-case scenario, we’re talking five years from now, and even then it’s like a moment in time snapshot — supply maybe reaches that structural demand,’ he added.

And of course, structural demand doesn’t account for inventory builds, or elements like small modular reactors. ‘It’s a structurally undersupplied market, and nobody knows where that relief is going to come from,’ Huhn said.

He encouraged investors not to ‘FOMO into positions,’ and to instead have a steady hand.

‘I think we’re healthily in the next leg up in this market, and the uranium price should continue to move meaningfully higher, potentially into a spike scenario,’ he said. ‘You want to have a seat at the table when that happens — don’t get too cute with trading in and out of positions, just hang on. It’s a volatile ride, but it can be a very, very rewarding sector to invest in for various reasons, and the volatility is one of them. You can’t have the upside volatility without the downside volatility.’

Watch the interview above for Huhn’s full thoughts on the topics discussed above.

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com
Enter Your Information Below To Receive Latest News, And Articles.



    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Editor's Pick

    The energy revolution is here to stay, and electric vehicles (EVs) have become part of the mainstream narrative. Despite geopolitical tensions and uncertainty, the...

    Editor's Pick

    Overview Mexico’s Sinaloa state hosts a number of prolific silver and gold mines, including McEwen Mining’s (TSX:MUX) El Gallo Complex, Americas Gold and Silver’s...

    Editor's Pick

    Uranium is an important energy sector commodity, and its rising value has attracted investor interest. 2023 has seen uranium prices solidly above the important...

    Investing

    A new survey shows that the presidential race between former President Donald Trump and President Biden is thin, but Biden faces a deficit in...

    Disclaimer: smartsuccessstrategy.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 smartsuccessstrategy.com