Gerardo Del Real,
Editor
May 28, 2025
Earlier this month, I outlined my reasons as to why I thought uranium was the next commodity to kick higher in the coming weeks and months (you can read that by clicking here). That was 30-40% ago.
Below is a 1-month chart for Uranium Energy Corp. (NYSE: UEC).
And here’s a 1-month chart for Encore Energy (NASDAQ: EU).
I could cite several more examples… but that’s all the freebies you get today.
Both companies are permitted, production ready, or producing right here in the USA. All of the factors I’ve explained would generate premiums in this part of the uranium cycle as the nationalization of natural resources continues to accelerate.
This past week, the Trump administration announced it would be invoking the Defense Production Act and designate the US nuclear fuel cycle as critical to national security.
Federal policy will target an expansion of US nuclear capacity from ~100 Gigawatts ("GW") in 2024 to 400 GW by 2050. The Department of Energy ("DOE") is directed to work with the industry to deliver 5 GW of uprates at existing nuclear plants and have 10 new large reactors under construction by 2030 while restarting closed plants and completing advanced designs.
Based on current uranium demand per GW of nuclear capacity, the industry expects that this build-out would increase annual US uranium requirements from 47 million pounds to approximately 190 million pounds per year (excluding initial core loads).
The White House fact sheet notes that the US currently supplies only 5% of the fuel used in its nuclear reactors and that the fuel cycle has "severely atrophied." These forthcoming Executive Orders are designed to reverse that trend and unleash American energy by rebuilding domestic capabilities across mining, conversion, enrichment, and fabrication.
Unlike the recently proposed, bloated, ugly spending bill, which accelerates the demise of the US dollar and our standing both domestically and worldwide (good for gold though), this bill is music to my ears.
The demand surge is primarily driven by data centers that require massive energy to power the AI boom; nuclear energy is an attractive option for Big-Tech firms such as Amazon, Google, Microsoft, and Meta given its reliability and near-zero carbon footprint.
None of this is a coincidence. Tech leaders here at home have preached the importance of winning the AI race… and that is going to require a LOT of energy.
Reuters reports that, currently, US utilities hold less than two years’ worth of inventory with contracting down 40% in 2024, which means that the largest consumer of uranium is about to reach into its pocketbook and start writing checks.
That will happen at higher prices. And when the game of musical chairs for uranium supply ends, those without the necessary supply will pay whatever the market demands.
By then, the equities with direct exposure and discoveries will be worth many multiples of today’s prices.
Subscribers of Junior Resource Speculator and Junior Resource Monthly have been positioned perfectly for this (and have been for years), capturing the first couple of legs higher and riding out the latest consolidation.
Uranium is going higher and so are the JRS and JRM portfolios. Click here (Junior Resource Speculator; Junior Resource Monthly) to join us for what will be a very profitable ride.
Let’s get it!
Gerardo Del Real
Editor, Daily Profit Cycle