The best thing about low uranium prices is that they greatly enhance one’s ability to take over world-class deposits that were discovered prior during increased exploration thanks to high uranium prices. The Fukushima disaster has created extremely low valuations – takeovers at such depressed prices would not happen if the buyers had the notion that uranium has no future for global energy.
Athabasca Basin Background
There is no other solution to the surging global energy demands but uranium. The majors know this, which is in stark contrast to the general perception that nuclear power plants have no future (or better have no future). However, it is this discrepancy in perception that have created such rock-bottom valuations, enabling the majors to swallow depressed prospective juniors at bargain prices and get their foot from traditional, but somewhat risky uranium producing countries, into more safer and richer uranium mining districts, first and foremost the Athabasca Basin in Canada.
The global demand for energy will be so strong over the next decades that no other known energy source or technology is capable in keeping up – only uranium can and will solve the upcoming energy problems of planet earth.
The following is our rough coverage of the 2021 Sohn Investment Conference, which is being held virtually and features Brad Gerstner, Bill Gurley, Octahedron's Ram Parameswaran, Glenernie's Andrew Nunneley, and Lux's Josh Wolfe. Q1 2021 hedge fund letters, conferences and more Keep checking back as we will be updating this post as the conference goes Read More
• Global electricity demand is expected to grow more than 75% by 2030. As laid out in a previous article “The Commodity Megatrend”:
“On average, every second 3 people are born these days. Until 2020, some 500 million people will be born, whereas around 75% of those will come to earth in Asia. The UN calculated the world population to increase from currently 7 to 9 billion until 2050. These 2 billion new people, or 30% more than today, represent on average 1 million new humans per week coming to earth. Additionally, another trend is active: urbanization, which is people increasingly leaving rural and undeveloped regions to move into cities. In cities, the per capita consumption of commodities is significantly higher than in the countryside. Calculations forecast that in 2050 some 6.5 billion people will live in cities – today it is only 3.5 billion. These 3 billion new people, or 86% more than today, represent on average 1.5 million people more per week living in cities. During the next 13 years, a minimum of 136 new cities will emerge in the current Top-600, whereas all of them will come from developing countries (e.g. 100 cities from China, 13 cities from India and 8 cities from Latin America). The enlargement of all cities in the world until 2050 is expected to equal the combined areas of Germany, France and Spain.“
Athabasca Basin – The Place To Be For The Upcoming Uranium Boom