Tom welcomes back Brandon Munro, CEO of Bannerman Energy, to discuss the increasing activity in the uranium space. Brandon believes it is a good time to invest in uranium equities, as it is a defensive asset.

The closing of nuclear plants had been a misguided idea, however, the world has now recognized this error. Reactors still require fuel, yet the current supply deficit means that what is available is being used up, and secondary sources are also declining. Further, utilities have used up a large portion of their own supplies.

There has been a fundamental shift in the public’s perception of nuclear power; if people approach it with an open mind, they should be able to recognize it as the answer. It has taken some time for this attitude to become acceptable in politics, yet it is now changing quickly. Countries like France are beginning to recognize it as the future of their economy.

Governments are now prioritizing funding of nuclear energy, as it helps energy companies cover the costs of capital, thus reducing the risks of constructing new plants. This is in spite of the fact that shale gas is very inexpensive, and there are numerous subsidies for renewable energy sources. However, rising energy costs and various issues with renewables have made new construction in the United States more practical.

Nuclear power is also appealing in terms of energy security, as countries can stockpile their own uranium reserves and thus ensure a secure energy source for whatever time frame they desire.

In the markets that matter today, the attitude towards nuclear energy has improved drastically, and the industry is now looking for ways to meet the coming demands.

Russia is the primary global enricher of nuclear fuel, thus leading to potential political implications. Plans to impose sanctions on Russian nuclear fuel by 2026 are in place. The excess mobile inventory has mostly been bought up by the Sprott Trust, and the world needs around $80 uranium to bring new mines and restart old ones. Few new projects can come online any time soon.

Timestamp References:
0:00 – Introduction
0:45 – Uranium Equities
2:20 – A Defensive Investment
6:52 – Shifting Attitudes
11:06 – Recession Risks
15:04 – Deglobalization
19:24 – Public Opinion
21:26 – Russian Enrichment
28:26 – Timeframes & Production
30:07 – Inventory Signals?
32:39 – The Incentive Price
38:20 – SPUT & Carry Trade
41:16 – Concluding Thoughts

Talking Points From This Week’s Episode

• There is a fundamental shift in public perception of nuclear power.
  
• Why governments are prioritizing funding of nuclear energy.
  
• Finding alternatives to using Russia for fuel enrichment.
  

Guest Links:
Twitter: https://twitter.com/BannermanEnergy
Twitter: https://twitter.com/Brandon_Munro
Website: https://bannermanenergy.com
YouTube: https://www.youtube.com/c/BannermanEnergy
LinkedIn: https://www.linkedin.com/company/bannerman-energy-limited

Brandon Munro is CEO of Bannerman Energy, an ASX listed uranium development company that is focused on the large-scale and advanced Etango-8 uranium project in Namibia.

Brandon is an expert on uranium mining and the nuclear fuel cycle.

Brandon has over 20 years’ experience as a resources executive and lawyer, with qualifications in law, quantitative economics, finance and governance. His various industry roles include Chair of the World Nuclear Association’s Nuclear Fuel Demand working group, which is responsible for forecasting global uranium demand scenarios to 2040. He is former Governance Advisor to the Namibian Uranium Association and Strategic Advisor to the Namibian Chamber of Mines. Brandon has held various voluntary board and committee roles in conservation, education and the arts.

As a uranium sector thought leader and author, Brandon is a respected voice in the nuclear energy sector and is a contributing expert to the United Nations Economic Commission for Europe.