Three days ago, the federal government gave one Maryland-based company exclusive permission to keep importing Russian uranium through the end of next year.
Let that sink in for a minute…
Russia, whose tanks, fighter planes, infantry fighting vehicles, and thousands upon thousands of soldiers have been getting incinerated and torn asunder by American munitions for the last 29 months, is still supplying the U.S. with vital nuclear fuel.
This is nuclear fuel that will power our civil infrastructure as well as the most expensive, most critical elements of our Navy.
Yes, I’m talking about these:
And it’s all coming to us from a sworn enemy who’s been threatening nuclear war against NATO for more than two years.
Is This Nuclear Fuel Stock More Important Than the War in Ukraine?
Now, knowing this may lead you to the snap judgment that our government is the absolute epitome of corrupt ineptitude — a position that may have some validity — but it should also lead you to the unavoidable truth that the company receiving this waiver is that important.
You see, this company is the first American-based firm to launch a new uranium enrichment operation in 70 years.
Sounds insane, right? But it’s true… Our nuclear reactor fleet, which is the biggest and most productive in the world and accounts for almost one-third of all fission-produced power, is fed almost entirely using fuel mined and enriched abroad.
In recent years, our share of world uranium production fell to below 1%, which analysisfrom both sides of the isle has identified as one of this country’s most critical strategic weaknesses.
Though Canada is our biggest supplier, up until recently, almost half of our uranium was sourced from former Soviet republics, all of which are either ruled or heavily influenced by the Putin regime.
In 2022, we were still getting as much as 12% of our domestic supply from the Kremlin, with Kazakhstan and Uzbekistan accounting for about another 30% of the pie.
That decades-long habit made this spring’s total cold-turkey ban on Russian-sourced uranium an impossible pill to swallow.
Why This Company Was the Only One to Get the Waiver
This past Tuesday, the Biden administration issued an exclusion to this rule.
The company that’s allowed to continue to milk this dangerous addiction will be doing so for good reason — ramping up our domestic production won’t be easy or quick, and in the meantime, we’ll need something to keep the lights on.
When we start to evolve our uranium supply chain to permanently swear off Putin’s imports, this company will play an increasingly important role, as the next generation of reactors being planned today will run on high-grade fuel that only it is licensed to produce.
And with today’s newfound interest in nuclear coming from Silicon Valley as a potential long-term solution to the anticipated AI-driven energy drain, even more pressure on domestic supply is just around the corner.
All of this puts this firm squarely at the intersection of several powerful market catalysts.
Soaring demand, decreasing supply, and a brand-new golden era for the nuclear power industry as a whole.
And yet few people know about it outside the professional investment community.
The Most Overlooked Investment of the Entire Energy Sector?
As I write this, the company I’m talking about is trading at a sub-$700 million market capitalization.
Given the interest the company is getting and the weight that will fall on it to buttress our nuclear fuel supplies, that valuation is sorely lacking.
That’s sort of been the pattern of late… Companies with clear value and potential are just not getting the attention they deserve from the retail investment community.
Therein lies the biggest aspect of this opportunity. Because no story this big can stay a secret forever, and this week’s news won’t fly under the radar much longer.
Want to learn more about this company and the unique position it occupies in our energy industry?
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Fortune favors the bold, Alex Koyfman His flagship service, Microcap Insider, provides market-beating insights into some of the fastest moving, highest profit-potential companies available for public trading on the U.S. and Canadian exchanges. With more than 5 years of track record to back it up, Microcap Insider is the choice for the growth-minded investor. Alex contributes his thoughts and insights regularly to Energy and Capital. To learn more about Alex, click here.
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