It’s always great to catch up with Justin Huhn from the Uranium Insider.
Over the last few years we have done several podcasts together and it’s been impressive to see Justin’s resilience and tenacity during what has been a one of the most volatile market sectors I’ve seen. Therefore it’s been great to see the U sector bounce back repeatedly after a few choppy drawdowns.
Justin is my go-to guy for questions on the Uranium sector and I highly recommend his newsletter which IMO is the pre-eminent publication solely focused on nuclear energy & uranium equities.
We first met during my first mini-retirement in 2023 when we both coincidentally happened to be in Buenos Aires, Argentina. Justin was on holidays visiting his in-laws and I was trying desperately to fill in my newfound abundance in free-time by rather degenerately trading options on Petrobras and, even more shamefully, killing a solid 3 hours by bleaching my hair blonde (it was HUGELY in fashion in LATAM in those days - so no judgements!).
The U sector had stagnated slightly after an explosive run in 2022 and I could see the frustration on Justin’s face as we ate a steak dinner in a hidden bar in Retiro.
I told him to relax because he knew better than anyone that the thesis was only getting better by the day even if the price action was sleepy and today, with the benefit of hindsight, he and his followers should be happy with how things have turned out and giddy with how things may turn out in the future.
In this conversation we discuss the current state of the uranium market, highlighting the recent positive trends, supply dynamics, utility contracting, and investment opportunities. Justin provides insights into the production challenges faced by major players like Kazatomprom and Cameco, as well as the demand from utilities and the role of financial institutions in the market.
Here are the footnotes for those seeking a briefing:
The uranium market has seen a positive trend this year.
Utilities are cautious in their long-term contracting.
Kazatomprom has reduced its production guidance for 2026.
There is a significant uncovered demand for uranium in the coming years.
SPUT has played a crucial role in tightening the uranium market.
The price of uranium is expected to continue rising.
The sentiment in the uranium sector is currently apathetic but could change rapidly.
Utilities are maintaining inventories to avoid high contract prices.
Chapters
00:00 Uranium Market Overview
07:31 Supply Dynamics and Production Challenges
13:51 Utility Contracting and Demand Insights
19:33 Investment Opportunities in Uranium
Personally, I have exited my position UROY as my buying thesis in a nutshell was that it was trading for the value of it's physical inventory holdings with a host of free call options on future projects. Being the only royalty in the sector made my homework a breeze for once. Safe to say now that despite early drawdowns, the thesis has been met. Should we see another sell off i may revisit it.
Until then, take care.
Benjamin.
Disclaimer: This publication is intended solely for documenting my personal journey with trading and investments for income and travel purposes. I am not a certified financial advisor nor am I a financial professional and none of the content provided should be construed as investment advice. It is essential to conduct your own thorough research and consult a registered financial service provider for appropriate guidance. I cannot guarantee the accuracy or completeness of the information presented. Any actions taken based on the information shared in any of my work are done at your own risk and discretion.
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