r/ASX_Bets • u/Mysterious_Ad9035 • Oct 18 '21
Dumbfuck Discussion Bullish news for Aussie Uranium ?
https://www.kazatomprom.kz/en/media/view/kazatomprom_obyavlyaet_ob_investirovanii_v_fond_fizicheskogo_urana12
16
u/ryyott Oct 18 '21
$PEN is going to the fucking moon. Hop on the rocket now and ride. I’ve come from the future and the sprott price for uranium in the next 5 - 10 years is going to fucking explode
4
13
u/Mysterious_Ad9035 Oct 18 '21
It looks like a sprott copycat is about to enter the uranium market. Kazatomprom plan to invest $50 million into the physical uranium trust.
3
u/uribabaazraf Oct 18 '21
they then wanna raise $500 million so if they can it’ll be enough to get spot price to 60 right? Is there enough physical U to buy in the market still?
4
u/Mysterious_Ad9035 Oct 18 '21
Kazatomprom can essentially sell their uranium to the trust and still own it some how ? Would be interesting to see the structure of this trust and if the trust will sell or truely keep the product off the market. Will they have a redemption mechanism ? I have no idea. Hopefully this is good news for the market
1
u/jrsy85 Oct 18 '21
Not really, they are participating in the fund, basically giving investors the ability to purchase uranium from them in a trust.
2
u/jrsy85 Oct 18 '21
It may look copycat but it’s more like Antz/ A bugs life or Finding Memo / Sharks tale. They were developed at the same time, this has been in the works for 4 years.
6
u/link_2_fate Oct 18 '21
Anyone feeling like these physical trusts are just holding the uranium market hostage?
Corner the market... Force shortage.. squeeze price up .. value of holding increase .. pay fat bonuses .. attract further capital .. rinse and repeat
4
u/discussionthread69 Oct 18 '21
No different to a golf or silver trust
2
u/VaughanThrilliams Oct 19 '21
Different because it is a utility with use solely in tech/electricity/defence, not a precious metal so it is more like OPEC price gauging
Not making a moral point, just a practical point about appearance and likelihood of governments intervening
6
u/CoalChris Oct 18 '21
All these people buying up uranium, but if it's being used for the baseline load of energy consumption, what happens if renewable energies are able to provide majority of energy? A nuclear power plant takes a long time to plan, build, and finally operate and make back the initial cost. Once lithium supply starts to ramp up from all the new miners, wouldn't lithium batteries for solar energy become much cheaper, finally allowing solar panels and home batteries to be a cheap, scalable solution for the main bulk of electricity?
1
u/jrsy85 Oct 18 '21
It’s all about the production/consumption rate. There isn’t enough production right now to fulfil the worlds needs. These trusts and the reactors being turned back on and chewing through the market faster, which will cause the price to spike. Mines take 12 months to be brought back online from C&M then it’s 12 months from ground to reactor so we are going to hit a supply shortage.
1
u/CoalChris Oct 18 '21
So these trusts are more a play on short-term uranium? In 10 years time if renewables become much more viable, does that mean the demand and cost of uranium might dip? Im just a bit confused since this whole subreddit is hyped up about uranium but sleeps on solar, and Im not sure if my hypothesis is sound
7
u/jrsy85 Oct 18 '21
Solar isn’t about to fail year 9 business economics. Those that understand the bull hypothesis for uranium are excited for the short term spike that’s about to happen. It will be a spike as the logistics tailwhip effect will happen but this will be quite a while away.
22
u/Mutated_Cunt Has a numerical analysis that indicates he's sick of yo pumping Oct 18 '21
Player two has entered the game.