Uranium is non carbon.
It is an existing technology that can be implemented and does not rely on the UN’s “other technologies yet to be invented”.
It can across the world, be used to produce a lot of power.
Using smaller reactors it can be meet the requirement to distribute power across large countries. The US military have even looked at portable nuclear reactors that fit within a container and can be moved on a truck.
It does not require mass changing of the existing infrastructure. It is well to remember that the problem may well have been created in the west, but will only be solved by a solution in the east. China, India and Indonesia must all have their needs met, in for them, a cost effective manner.
I do not know much about Uranium or indeed about individual companies in this space. I therefore decided to go with a basket of CCJ, NXE and DNN and an ETF – URNM. All three of the shares are reasonably big holdings in the ETF.
As a general process, nothing to do with Uranium, I keep track of my shares via a spreadsheet that I build alerts into and in the last week all 4 shares have hit an alert. This is the one that says, buy more or sell out or know why you are not doing either of the first two.
Although I have held all of these for almost a year now I think it is fair to say that I am not an expert in any of the companies. Though I have read a lot of the commentaries on each of them. Nobody seems to like CCJ, nobody really cares about NXE and DNN is liked by more people than dislike it. It seems to be the cream of the crop. URNM is confirmed to me as being a solid way to play Uranium and a decent basket play. The alternative is Yellowcake. But this is very much a straight play on the Uranium price, whereas URNM adds, I think, a bit of operational potential.
Whilst I do see Uranium as the only real sensible alternative I do not see the green lobby as particularly sensible. Its activities in the UK are hugely misdirected and seem to me to be more anti working class than actually green. In Germany they are switching off nukes and increasingly missing their Co2 targets. In America they want EV vehicles but to get these they need lithium. But the green lobby doesn’t want the US to mine lithium in the US. So they want other people to have mines and they have the benefits.
It is also fair to say that both sides of the Uranium equation, suppliers and users are waiting for the other side to jump. There is a lack of contracts and some suppliers are buying on the spot market rather than mine themselves at current prices. If the market reverses, and it is a big if the move could be very fast and quite high.
So whilst I think Uranium should be the rational answer, as we live in an irrational world I am reluctant to give it too much weight in my portfolio. So its about a 1% position on the downside being zero and the upside being 10.
I have therefore sold CCJ for a gain of 16% and put the money into adding to my DNN. Average price now $0.86.
I sold the NXE for a 12% gain and put the money into URNM. Average in price now $48.25