Summary
➡ Ukraine’s nuclear reactors are wholly dependent on Russian fuel and supply chains, with global demand for uranium anticipated to skyrocket in the coming decades. Countries with no prior nuclear programs like Poland and Egypt now have the advantage of progressing quickly without much regulatory hindrance. Uranium investments can be diversified across physical assets, producers, and explorers. One interesting investment is Atha Energy Corp, a cash-rich exploration company with the largest land package in the uranium-rich Athabasca region. It’s important to note that the shift to nuclear power is gaining momentum with the support from global entities like the World Bank, suggesting a forthcoming uranium boom.
Transcript
So in this video, I’m going to break down what just happened at the UN’s Cop 28 meeting that was so shocking. And as always, I’m not going to just read you the news, because, of course, you can do that on your own. Instead, we’re going to dig into how this impacts you no matter where you live in the world. And of course, how we can position our portfolios to profit from this as this new megatrend plays out.
So let’s go. All right, welcome to the channel if you’re new. My name is Mark Moss. I make these videos to change the way you think about money because it’s hard to know what’s going on. We haven’t learned what’s going on, and so we’ll break it down and we’re all going to succeed together. Now, I want to go ahead and just jump right into this video with the news about what happened at this last meeting.
The UN’s Cop 28, as it’s called, just happened a couple of weeks ago. Now, just to give you some background, first of all, for the past now 28 years, world leaders and environmental activists, they’ve convened at the annual conference of the parties to the United Nations Framework Convention on climate change. It’s a mouthful. That’s why we call it cop. Now, for the last 28 years, they’ve held an almost singular focus on variable renewable energies, such as solar and wind, variable or unreliable, as we like to call it.
And they’ve focused on just solar and wind as the only solution to global warming. But as I’ve been saying for years, when it comes to energy, it’s that reality will eventually smack them across the face. Of course, as their best intention, plans fail, and that’s what’s happened. And of course, very spectacularly, in fact, an article in Time magazine, no less, Time magazine covering this event said, wedged between energy crisis and climate change and natural disasters, there’s no longer the luxury of choice.
So for the first time, the taboo subject of nuclear power came up. And it didn’t just come up. Actually, it surged to the top of the world headlines at the COp 28 in Dubai. And this wasn’t just the conversation, but rather a joint commitment where leaders from 22 countries on four different continents came together to announce a declaration, a declaration to triple global nuclear energy capacity by 2050 to meet climate goals and energy needs.
Now, this landmark declaration invited the World bank, the World Financiers, the World bank, regional development banks and international financial institutions to include nuclear in their lending standards, while underscoring the need for secure supply chains to ramp up deployment of the new technology. Now, if you’re a regular viewer of the channel, you know, the part about including nuclear in their lending, you know, that’s a really big deal because it’s the global bankers and the money controllers that really control things, right? And if you’re not a regular view of the channel, then just take a second and just click on the subscribe button real quick.
Hit that like button while you’re at it so more people can see the video. All right, thanks. Now, I’ve been talking about ESG mandates and how they declared any business that didn’t go along with their plans to become, quote, economic roadkill, as Mark Carney put it. And so now instead of wanting to kill these businesses, they’re actually encouraging banks and institutions to start deploying capital to them instead.
Now that’s a really big deal. Now, this declaration came amid a flurry of other pronuclear power announcements at this Cop 28, which, of course, was hosted by the government of the United Arab Emirates, which is pretty important because, of course, they’re an oil producing nation, but they’re jumping on this bandwagon as well. As a matter of fact, the UAE is completing construction on a massive four unit nuclear power plant themselves.
And the following day, after the announcement, French President Macron announced the world’s first nuclear energy summit to be held in Brussels in March of 2024, just a couple of months away, to maintain the global momentum behind nuclear energy. You see this is a big push. And it’s not just a big push, it’s a rush to push it. As a matter of fact, President Macron said, quote, if you want to reconcile jobs creation, strategic autonomy and sovereignty, and low carbon emission, there is nothing more sustainable and reliable than nuclear energy, end quote.
Now, I want to break down that quote into a couple of pieces first. All right. Now let’s first focus on a piece of that, quote, jobs creation. Now this means re onshoring manufacturing back to countries, reversing 60 years of globalization. I’ve been talking about for two years, the pendulum swinging back from centralization giving way to decentralization. Now the US is pushing for it, the EU is pushing for it, and that’s exactly what Macron is talking about.
Now, the other thing he said, which is also important, it sort of fits in, is, he said, strategic autonomy and sovereignty. Now, as the world continues to break apart, going from global just in time supply chains to a better, I better have it just in case type of supply chain, it’s no longer realistic for nations to depend on other nations for their core resources, such as energy. As a matter of fact, I’ve shown before, you’ve probably heard Trump warn Germany what could happen if they shut down their own energy and depended wholly on Russia.
And of course, he was right. And the whole world is now scrambling to fix this exact situation, which is why the urgency is there. And of course, the US isn’t on the most friendly of terms with Russia, which is a big deal considering 30% of us homes run on nuclear energy. And of course, they all need uranium, which is, yes, coming from Russia, and they’re not so sure that they want to continue to sell it to the United States anymore.
As a matter of fact, just last month, the russian stateowned uranium company Ten X gave a warning that the Kremlin may preemptively bar exports of its nuclear fuel to the US. So that could be a problem, which is why, again, the urgency, and assuming that that doesn’t blow up, we still have the bigger problems. Now, there’s the not much available part, supply and demand. Now, I did a video a few months ago called the bigger short, where I broke down the math of just how short and offsides the world is, and especially the US is in uranium.
If you want to see the math and see how big of a problem this is going to be, go back and watch that video. We’ll link to it down in the show notes down below so you can watch it after this. Now, I recommend understanding again the sheer magnitude of this problem and what it’s going to do to the prices of uranium. Spoiler alert. It’s going to send it to the moon.
And of course, that’s putting it modestly. Now, the way nuclear energy is rolled out is going to be different depending on what country you live in. If you’re in the know, Europe, Canada, the US, it’s going to be very slow, it’s going to be very expensive, but the rest of the world, it’s going to roll these out very quickly. Per report by the IAEA. In recent years, new build nuclear projects in Europe and the United States have suffered construction delays and cost overruns.
But projects have been delivered relatively on time and on budget in countries like Belarus, China, Republic of Korea and of course, Russia. Now, with the exception of France, which is of course already about 70% nuclear, many of the developed world’s leading economies and governments have been too scared of nuclear power to allow it to flourish. Germany completely phased out its entire nuclear power program, finally turned off its last three of an original 17 reactors in August of 2023.
Belgium and Switzerland decided not to build new plants and to phase those out as well. In the US, almost nothing has been built in decades. Unfortunately, unencumbered by popular opinions against nuclear, the western world’s great geostratic rivals are years, if not potentially decades, ahead of where the west is now. Right now, there are 60 nuclear projects in various stages of construction around the world. Not the US, but 60 around the world.
22 of them are in China. 22 use russian technology. 18 use chinese technology or technology that China stole from other countries and rebranded. That’s a whole nother story. Some european countries, notably Hungary and Serbia, some NATO countries, such as Turkey, are planning new reactors using russian designs and russian supply chains. Ironically, and tragically, even all four of Ukraine’s reactors are russian. Their russian model is entirely reliant on russian fuel, and Russia controls much of the nuclear supply chains.
The western world ended up so far behind because of fear. Governments around the world are now struggling to catch up, slowed by still high public opposition rates and regulatory regimes that institutionalized fear of nuclear into licensing and permitting processes. But in countries that never had nuclear power before, such as Poland and Egypt, opposition is not baked into law. And so they can paradoxically move faster than some countries with long standing nuclear programs just the way bureaucracies work.
So the world is set to look very different in the next two decades as some nations become energy rich and other nations become energy poor. But you know what doesn’t matter out of any of that? The fact, again, that they all need uranium. They need lots and lots of uranium. So rather than trying to bet on different countries or different companies that produce the technology, they all need uranium.
Now, you can tell by now, and if you’ve been watching the channel, you know, I’ve been very bullish on uranium for about two years now. We’ve done great on it right over the time frame since I’ve been talking about different companies, we’re up over 100% on some of these plays, but it’s just getting warmed up. This meeting just happened. Over the next two decades, we’re going to witness an explosion in demand of a very limited resource, which means we need to find more of it, we need to process more of it, we need to transport more of it, et cetera.
Right. So you can diversify uranium investments a few ways. So typically sort of like any resource stock, like gold, silver. I think about physical, that’s the physical supply of it. However, unlike physical gold, it’s very difficult to hold uranium, just like oil. And so you can play that in like etfs. There’s some ways to do that. Then you have the next tier that’s less risky. The producers, these are the big players, the kazatomprom or kamiko, these are the producing the uranium.
And then below that, the more risky, higher return, higher risk is the explorers. They find the uranium and then they pull it from the ground. So those are sort of the three classifications that I would think about and how to play that, and probably diversify uranium positions through that, some physical, some producers and some explorers. Now, I’ve covered physical and producers before, so today I want to dig into the explorers because they give us the greatest asymmetric edge.
They allow to have small, little bets that could potentially pay off big. Now, my belief is the producers are going to go out and try to buy as many explorers and resources that are still on the ground as they can get their hands on. Right. They’re going to realize how short they are back to that, the bigger short video, and they’re going to go out in a mad rush to buy this, going to try to get their hands on as much as they can.
And so that’s why with little small bets, we can make huge returns. Now, I want to talk about one specific company. I’ve already talked about them before, a couple of months ago, but big news has changed since we last talked about them. And the company is Atha Energy Corp. Now just full disclaimer. This is a promotional video. We’re using this as an educational resource. So let me show you what I’m looking at so you can go find your own companies.
I do think this is a good company, but I’m not telling you to buy this. I am paid for this. This is a promotional video, but I think it’s worth looking at anyway. So Atha Energy Corp, the reason why I like Athenergy Corp is because they’re located in North America, which is very important for the west, the US, Canada, et cetera. As we talked about, they’re getting all the uranium from Russia.
It’s a big problem. And so now, this is a company that’s located in the west. It’s in North America, and it’s not just in North America, but it’s in the world’s most uranium rich area, with the world’s highest grade uranium deposits. Now, I’m talking about the Athabasca region. If you want to get into uranium outside of Russia control, this is the one. And Athaenergy has put together the largest land package in the region.
Now, a few months ago, I mentioned them in a video, and I talked about how they had acquired this massive land package. But since then, this is what I wanted to update you on. It’s only gotten bigger with so much demand for high quality uranium. Not from Russia. This Athabasca region is completely blowing up, and Atha Energy is blowing up with it. They just acquired two more companies to increase their land package even more.
They acquired 92 energy and another company called Latitude uranium. Now, their existing areas were already massive, but because of their accelerating demand, they wanted to go get more product to the market and faster. And with most of the land in the exploration stage, or what we call the greenfield stage, as it’s called, they wanted more advanced projects. They went out and they bought them. And the market absolutely responded to this.
As a matter of fact, Atha announced a $14 million raise, and the market went crazy. And they had way more demand than they had intended, and they ended up raising 22 million instead of the 14. Now, this is amazing on its own, but what’s really amazing is that now Atha Energy is sitting on $64 million of cash, which makes them the most cash rich exploration company in the world.
I mean, there’s no exploration company with $64 million cash in the bank. None that I’ve ever seen. I don’t think it’s ever happened before. Now, they have the land assets in three key jurisdictions in the area, the Athabasca basin, the Thelon basin, and the central mineral belt. Now, this allows them to have asset diversification, not just in stages of the exploration, but as well as in different areas around the region.
Now, this allows them to literally quadruple the nature of their business model. They now have, one, greenfield exploration. So this is geology starting projects from scratch. Two, they have prospect generation. They allow people to build in their areas, earn in agreements. Three, they have joint ventures with other companies where they spend their own money on Atha’s projects, massive leverage for them. And finally, discovery exploration. Under the expertise of their CEO, Troy, they’ve taken the mineralized zone and discovered even more uranium, more deposit expansion and things like that, and of course the highest grade uranium in the world.
But enough about Atha energy for now. It’s just one way to play this. But the narrative shift coming from the COP 28 meeting is historic, and the commitment to tripling, not doubling, tripling, the nuclear energy over the next two decades, along with the World bank making a commitment to fund nuclear is going to cause a nuclear energy and uranium boom that lasts. The US is going to make a mad scramble for it.
Canada, the west as we call it. And it is on. Game on. However, whatever you want to do, however you decide to play it, it’s up to you, right? There’s less risky ways like physical etfs, things like that, all the way to the more risky players like Atha energy. But whatever you do, don’t miss out on this uranium boom that’s already underway. Turns out supply and demand is a power powerful tool.
Let me know what you think. Are you going to play uranium? Have you already been eyeing it? Do you understand what you’re doing there? Would you like more content about uranium? I’d love to hear your thoughts on it down below in the comments, of course. As always, give me thumbs up if you like the video. If you don’t, you can give me a thumbs down. But if you do, at least tell me why in the comments down below.
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