Is Uranium a unique opportunity? The Uranium Bull Thesis
This is the one of the most interesting stories that I've encountered so far. The uranium bull thesis that is. The Uranium market is a very interesting market. There are a few reasons for that. But the most important reasons are due to the fact that first: The price of uranium is not as transparent as other commodities.
There are two important parties that determine the price of the Uranium as a commodity. These parties determine supply and demand for this commodity and ultimately decide the price of it: nuclear reactors and mining companies.
Because of the high initial capital cost for nuclear reactors, the cost for the fuel used in these reactors is very small compared to total cost to build them, and so nuclear reactors are not as concerned for the price as it doesn't represent as a big percentage of its energy total cost.
That means that for nuclear reactors, the price is not as important. What they care about is security of supply and so the price of uranium is mostly determined mostly by the supply and demand of uranium. And so the more uranium there is in the market, the lower the price and vice-versa.
00:00 The Uranium Bull Thesis
01:27 Uranium Price
02:57 Uranium Supply and Demand
04:14 Secondary Supply
06:20 Cameco Corporation (CCJ)
07:03 Denison Mines Corp (DNN)
08:12 Conclusion