A change of government in the WA election early next year...

A change of government in the WA election early next year (potentially earlier) means that the Uranium ban will be reversed. I follow a couple of WA based uranium stocks, TOE and CXU. Both are hopeful of a change in Government in WA. McGowan pissed off a lot of people in WA during covid and then abandoned ship like a rat. You can’t just replace the premier and expect to win. My money is definitely on a change of government and an LNP victory which means Uranium is on again.

This will be a hot election topic! Especially with such large consequences in relation to cost of living and energy prices. The traditional renewables have struggled in the state in recent years due to unpredictable weather conditions and diving too fast into renewables without a solid changeover period with fossil fuels. Nuclear energy is the logical solution and a clever election campaign would likely wake up the sheep, many of whom are still fearful in relation to nuclear. However those government plans about the US nuclear subs being developed in port in WA also creates an opening for local nuclear fuel. There would be a lot of hypocrisy involved if labor campaign against nuclear fuel this election after the federal government just announced the nuclear submarine plan. Adding another spanner to the works is the recent Japanese delegation who held high level talks with the WA state government and some Federal Ministers in Perth recently. We know Japan are approximately doubling their nuclear reactor construction and are looking for uranium to meet this increasing future demand. They are looking at friendly countries, especially with all the hostilities in relation to Russia lately, who are a major uranium exporter.

This could end up being a very clever path for DRE, by the time a couple of phases of drilling are completed and the potential of a high grade resource is proven, it may well be that it’s a green light to move towards production.