Uranium: The Underappreciated Clean Energy Transition Trade - (w/ Adam Rodman and Arthur Hyde )

Real Vision: Finance & Investing

Real Vision

Investing, Business News, News, Business

4.1 • 1.1K Ratings

🗓️ 15 March 2021

⏱️ 64 minutes

🔗️ Recording | iTunes | RSS

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Summary

Real Vision Live Replay: Segra Capital Management partner Arthur Hyde, CFA, and founder and portfolio manager Adam Rodman join Real Vision editor Max Wiethe to give an in-depth update on uranium. Hyde and Rodman provide a recap on the recent events in the sector and uranium's price movement, discuss why this is still a structurally undersupplied market, and share why interest in uranium is increasing. With the presence of COVID-19, they explain the risks that the pandemic poses to the uranium supply and that, despite these supply risks, the demand for nuclear power generation has remained resilient. They also dig into how existing and new nuclear energy will play a role in the secular global trend towards clean energy in light of China's, Japan's, and Korea's recent carbon neutrality pledges. Key Learnings: Hyde and Rodman explore how nuclear power is an underappreciated, yet critical player in the transition to clean energy, and the uranium sector only stands to benefit from this trend. Emphasizing that this transition will take years, they advise that investors should not be as preoccupied with uranium's price cycle—rather, it's more beneficial to focus on CapEx as a delayed CapEx cycle leads to sustained high prices in uranium. Recorded on 14 Dec , 2020 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0	Hello, everyone. Welcome to Real Vision Live for Real Vision. I'm Max Wheatley. I'm joined
0:16.8	today by Arthur Hyde, partner and co-portfolio manager at Cigar Capital and Adam Rodman, founder
0:21.7	and CIO at Cigar Capital. Today, we're going to be discussing the Uranium Market and the
0:25.7	nuclear energy sector more broadly. It's been a while since we've talked with Adam. We had Arthur
0:30.2	on back in April, really at the start of the coronavirus pandemic, talking about some shutdowns that
0:35.5	had happened in the market. It really is perfect timing. Every single time we have you guys on,
0:39.6	because we had another big news announcement this morning. I'm sure we'll talk about that,
0:44.4	but I really want to just get started and update viewers on where we are since the last time we
0:49.4	spoke with you, Arthur. Great. Well, I'm probably going to kick things off, Max, and then Arthur and I
0:56.6	will bat things back and forth, but it's been a pretty active year for the nuclear power industry,
1:02.5	and the Uranium commodity sector as well. Arthur did a almost scary good job of predicting some of
1:13.5	the COVID impacted supply effects back in April when he was last on, but to recap generally,
1:23.0	we were on real vision in the spring as the worst of COVID was kind of raging. Talking about how
1:31.0	the nuclear industry ends up being pretty unique, certainly unique in the commodity sphere, and that
1:35.7	the demand side of the equation, i.e. reactors running globally, aren't usually impacted by a crisis
1:43.4	like COVID, a slow power that generally runs 24-7, very resilient to all kinds of shocks,
1:50.8	including pandemics, but that with the super concentrated supply chain, that we could potentially
1:56.8	see some vulnerabilities that would lead to maybe even dramatic rises in the price of the commodity.
2:06.1	And that's exactly what happened. Both Kamiko and Kazadamprom, which would be the worlds
2:11.5	two largest producers of Uranium, had their own version of supply impacts. Kamiko brought down
2:19.8	the cigar lake mine, Kazadamprom had to do a portfolio-wide production decrease,
2:28.4	and it led to spot prices rising to a high of around $34 from a little more than
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