The SumZero Cap Intro team is excited to share a deep dive into the uranium industry with Will Thomson, Founder/PM of Massif Capital.
The spot price of uranium has surged over 32% YTD despite price drops of the same magnitude in other commodities. Mine closures due to COVID-19 have certainly accelerated the price lift, but Thomson credits market-wide contractions which predate the pandemic and bottlenecks in the enrichment process as well as domestic uranium programs like the newly-formed Nuclear Fuel Working Group.
This scenario represents real-time opportunity to energy investors like Thomson:
"We are not mining enough uranium to meet demand, we do not have the supply chain facilities necessary to provide for a growing number of reactors globally, and there are currently 55 or so reactors under construction globally, potentially increasing the global reactor fleet by 13% over the next three to five years."
On the unique challenges of investing in uranium:
"Knowing the [uranium] industry requires knowing the players, engaging with a wide community of industry participants, and in the case of uranium mining, often traveling to places like Kazakhstan...There is no formal exchange upon which uranium trades, so in order to engage in spot market transactions you need to know who to call.""
Making the case for uranium as the only carbon-free base load energy alternative to oil:
"In 2018, nuclear provided 10% of global electricity,yet it represented 40% of all the zero-emissionelectricity in advanced economies. Between 1970and 2018, nuclear power provided ten times the zeroemissions electricity of wind and solar combined."
Please find the full Q&A below and read Thomson's Kazatomprom report on SumZero.
Download the Massif Q&A Here
Please visit Massif Capital's profile on Cap Intro to learn more about the strategy and team. If interested in a warm introduction, feel free reach out the SumZero Cap Intro team.