Uranium Fuel for America
William Armstrong@armstrong
The idea
I believe nuclear power becomes a much bigger share of US electricity over the next decade, and uranium fuel is the cleanest way to bet on that regardless of which company builds the reactors. This basket leans heavily on enrichment, the choke point as the US moves away from Russian supply, plus major global miners, US-based producers, and a slice tracking the uranium price itself. I keep a cash buffer to add when these volatile stocks sell off, and I hold for years since this is a slow structural shift, not a trade.
What will be bought
- The biggest Western uranium producers and developers sell more pounds at better prices as reactors need more fuel. · Cameco CorporationThe largest Western uranium miner also does conversion work, making it a direct way to own the fuel supply chain as nuclear capacity grows., NexGen Energy Ltd.It is developing one of the world's largest uranium mines in Canada, which matters if sustained US reactor growth requires substantial new Western supply., Denison Mines Corp.It is building a new uranium mine in Canada's richest uranium region, adding Western supply that American reactors can depend on.29%
- Turning raw uranium into reactor fuel is the tightest part of the supply chain, and the US has very little of this capacity at home. · Centrus Energy Corp.It runs the only US-owned enrichment operation and sits at the center of fuel supply restrictions, making it the fuel step most likely to run short if nuclear power expands significantly., BWX Technologies, Inc.It converts uranium into finished fuel and reactor components and already supplies the US Navy, so expanded American reactor construction means more work for its plants., ASP Isotopes Inc.It is pursuing a newer enrichment method including HALEU, the stronger fuel many small new reactors require, through a joint venture focused on production., Lightbridge CorporationIt designs a new metal fuel meant to let existing and future reactors run longer and harder, which ties directly to expanded uranium fuel demand.27%
- American mines benefit as Washington pushes utilities to buy fuel from domestic sources instead of imports. · Uranium Energy Corp.It mines uranium in the US and holds a large domestic stockpile, gaining directly from policies favoring homegrown reactor fuel, and is also moving into conversion., Energy Fuels Inc.It owns White Mesa, the only working conventional uranium mill in the US, making it hard to replace if American nuclear power expands., IsoEnergy Ltd.It is restarting uranium mines in Utah, adding US supply that supports policies favoring American-made reactor fuel.18%
- These holdings rise and fall closely with the price of uranium itself. · Sprott Uranium Miners ETFThis fund owns uranium miners and physical uranium, so it rises and falls with the commodity price rather than depending on any single company's performance., Uranium Royalty Corp.It collects a portion of other companies' uranium output and holds its own stockpile, so it benefits from higher uranium prices without the need to operate mines.15%
- Cash11%