Extracta1 is a fantastic commentator on U3O8 with brilliant insights who understands the market and sorts fact from fiction with data tsar like qualities.
Extracta1 is a true inspiration for HC'ers and removes the rabble from the rapid fire reports and reviews.
To put Extracta1's comments in perspective, through November of last year, there were nine new nuclear reactors brought online. Seven of them hailed from Asia; China alone accounted for five.
Right now there are around 57 reactors in some state of construction. China, India, and Korea account for roughly half that total.
Basically, nuclear power growth is happening in Asia, and that's what's going to drive long-term demand for uranium. President Trump will have little to no impact on that. Will ERA? Will RIO? Will Paladin be around?
For example, in 2007, Asia accounted for just 7% of the company's business. Today, that's up to around 41% and is easily the largest piece of the puzzle. As new reactors open in the region, it's reasonable to expect this shift to continue.
There are things that in the short term President Trump can do to support nuclear power, like softening environmental regulations and pulling back government incentives for alternatives like wind and solar.
But the fact is, a bigger part of nuclear's problem in the states is low natural gas prices that have, in turn, led to low power prices. Fixing that doesn't appear to be on President Trump's agenda.
Luckily for Paladin, the United States is only a small part of the still-bright growth forecast for nuclear power and the uranium that feeds reactors. The real growth is coming from Asia. And that's an increasingly important region for Cameco. It is where ERA resides and where RIO sees the U3O8 future.
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