Justin Huhn – Part 4 Of Nuclear Fuels Demand And Supply Factors – Pro Tips On Investing In Uranium Stocks
The KE Report w/ Shad Marquitz (06-19-2025)
Justin Huhn, Founder and Publisher of the Uranium Insider, joins me for yet another very comprehensive macro update on the supply and demand fundamentals for uranium and the nuclear fuel sector. We dive in for his outlook on how the longer-term contracting cycle is setting up with utility companies, and what he is watching with conversion and enrichment. We also find out how he is positioning in the uranium equities, now that we’ve started to see a general bounce across the sector over the last 2 months.
This is a longer-format discussion building upon our prior conversations in 2024, because even more key news and developments have been announced that are critical in the nuclear and uranium sector.
🔑 Key Insights from Justin Huhn:
🔹 We start off reviewing the 4 executive orders out of the Trump Administration in May that deal with the nuclear and uranium industries, and what this means for the sector and public perception.
🔹 We spend some time discussing the tailwinds from both the broader generalist interest in Small Modular Reactors (SMRs) and nuclear stocks, but also the bigger-picture attractive supply/demand fundamentals that already existed and still exist just from the known demand from traditional nuclear reactors.
Justin makes the case that there are already very bullish fundamentals in this sector, without even modeling in the narratives around mega-cap tech companies now turning to nuclear power as a solution to the massive energy demand of AI datacenters, and without needing to factor in the future additional uranium demand that will stem from SMRs starting a few years out.
The global nuclear reactor fleet is continuing to grow, with more new reactor builds in the East, plus mine restarts and mine extensions in many countries.
There are growing initiatives globally, coming out of the COP28 and COP29 conferences for many nations to triple their nuclear power capacity by 2050.
🔹 Transitioning over the supply environment from the uranium mining companies:
We’ve seen a flurry of news all year out of US and African producers struggling to ramp up their production output, noting specifically the slower than anticipated restart of the Langer Heinrich Mine operated in Namibia by Paladin Energy (ASX: PDN) (OTCQX: PALAF).
Additionally, with Kazakhstan being the largest uranium swing producer via it’s state-run Kazatomprom, we’ve seen guidance lowered the last couple years due to a shortfall of sulphuric acid, and increased taxes on production, with both expected to crimp output. This has meant less uranium produced than expected.
Then, there were even more surprises when Kazatomprom announced a big decrease in their production alloted to the JV with Cameco (CCO.V) (CCJ).
👉 Next we point out that large development projects in the Athabasca Basin of Canada, are still many years from producing any new uranium supply, despite the complacency and misguided beliefs of many utility companies to the contrary.
We discuss that big future deposits like the Phoenix Project held by Denison Mines (TSX: DML) (NYSE: DNN), and in specific - the Arrow Project from NexGen Energy (TSX: NXE) (NYSE: NXE), are nowhere close to producing this year, next year, or even in the near-term.
NexGen’s Arrow deposit at Rook 1 was initially anticipated to start bringing on new supply by 2028, but we’ve seen timelines consistently get pushed back, now to 2030 with estimated “first cake in the can” by 2031…or later.
There is actually very little new uranium supply from mining companies in any jurisdiction coming online globally, with the exception of some smaller production coming online from the US and Australian producers.
All of this projects out to a much more constrained output from global uranium producers through the end of the this decade, even in face of growing demand.
🔹 Wrapping up, Justin weighs in on which types and what stage of uranium mining stocks have his interest, and why he remains bullish on US producers and developers, and select Canadian developers and explorers.
➡️Click here to listen to the full interview with Justin Huhn to get his outlook on the nuclear fuel sector and the types of uranium mining stocks on his radar.
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