Niger Crisis: A Direct Threat to France & US's Access to Uranium!

Albert Einstein once said: "The unleashed power of the atom has changed everything except our thinking. Thus we are drifting towards catastrophe beyond conception. We shall require a substantially new manner of thinking if mankind is to survive." Take a step back and consider —what is going on due to lack of access to uranium, which fuels nuclear power plants to generate electricity. This is exactly the scenario that both France and the United States could be facing given what's taking place right now in Niger, a country where soldiers ousted the government of President Mohamed Bazoum. Niger, a country abundant in uranium, But it is not just about access to uranium. It is also about geopolitical risk, which is a significant factor in uranium supply. The bulk of the uranium production comes from countries that are vulnerable to disruption of one kind or another. Global uranium supply currently faces considerable disruption, with all but two of its top producers marked by geopolitical instability. The conflicts in Ukraine and Niger shine a light on both the pivotal role of geopolitics in uranium supply and the importance of geopolitical stability. The price of uranium has risen slightly since last week's military coup in Niger, as mining operations have continued in the world seventh-largest producer of the radioactive metal. But a consultancy says prices may rise in the coming weeks. The spot price of uranium, widely used for nuclear energy and treating cancer, creeped up to $56.25 a pound as of Monday, from $56.15 a week earlier. The price has doubled over the past 3 years but is nowhere near a peak of $140 in 2007. Ben Goodwin, head of analysis at London-based Prism Political Risk Management, argued that the current events in Niger, which produces 4% of the world uranium supply, could be critical to Europe. He added, and I quote: "If the coup is certainly a tragic event, it is of great interest in the moment, particularly as uranium markets are very, very tight at the moment. Demand has been going up over the last few years, and this year we've seen the uranium spot price go up by nearly 40% year-to-date." End of quote. So the recent military coup in Niger has resulted in a marginal increase in the price of uranium, a critical resource in the global energy sector. As the world's 7th largest uranium producer, the country's mining operations persist despite the political upheaval. Market research firm UxC reported a modest rise in the spot price Uranium inching up from $56.15 to $56.25 per pound, indicating a modest increment. However, market analysts warn that the repercussions of the coup may take time to fully manifest in the market sentiment. Jonathan Hynes, the president of UXC, notes that the event could potentially catalyze upward movements in uranium prices, given the finely balanced supply and demand dynamics in the market. What's interesting about these dynamics is that the market is already reacting to the Niger event. Exchange-traded funds that provide investors exposure to uranium are up sharply. So far this week in the wake of a military junta overthrowing the president of Niger, a significant supplier of the metal, even as they lost some steam on Tuesday. The suspension of Niger's uranium exports will have no immediate impact on the French nuclear power sector, although uranium prices may gradually rise globally. To begin, unlike gas, uranium is delivered in individual chunks. Second, the nuclear power sector has traditionally kept uranium supplies on hand in case of a potential outage, and the French will do the same. However, if the export embargo becomes permanent rather than temporary, France's nuclear power sector will be forced to find a substitute for Niger uranium's in Canada or Australia. As a result, the government of Niger will have to find a new customer for its uranium, which will most likely be China. This implies significant changes for the worldwide uranium market, with the uranium price eventually rising as a result. Only Canada and Australia, respectively the second and third largest producers, can be regarded as generally low risk from geopolitical standpoint of view. While both represent sound investments, there are several factors that gives Canada an edge. This leads me to talk about today's sponsor of this video. Traction Uranium, stock ticker TRCTF, is a Canadian exploration company It is both uranium explorer and developer. Traction's strategy is to generate or acquire early-stage exploration opportunities and advance them towards development stage activities headed by an experienced team or by business partnership and joint venture arrangements. Traction Uranium's current focus is exploring its two uranium projects in the Athabasca Basin in Saskatchewan. The company has phenomenal institutional shareholders, among which are Sprott Capital, Conacord Genuity, and Research Capital. It involves institutional investors with 30% of ownership stake. But the most powerful part is that 55% that is owned by founders and strategic partners. It is a very tight structure, which means that people who believe in this company are the shareholders. As to the project, they have projects on the Athabasca Basin, a good enough reason for it to be called Saudi Arabia of Uranium. And if you know anything about Saudi Arabia, It is very rich in oil. The Athabasca Basin is known as the world's leading source of high-grade uranium, with about 20 times the average international purity. The technical advisor for the company, Bernd Thun, was very instrumental in the 1975 discovery of the Key Lake uranium deposit in Saskatchewan. The region where Athabasca is. As a geologist, he oversees the delineation drilling of the deposits with the reserves of £200 million in reserves. That's how much, by the way, the world spends in one year. What is also important to note is that Traction Uranium's key Lake projects is only 5 kilometers from that mill. This is the location where they are going to drill their project with a new sort of techniques, one of them known as Victorine technique. It is worth mentioning that the Traction Uranium research team has already discovered highly radioactive zones when they brought back sample of the black soil The analysis results showed high-grade uranium mineralization at 0.93%. Interestingly, there is another uranium company in the Athabasca reporting on a mega discovery. Their stock, by the way, went up 500% in one week. Very impressive, I would say. The reason I am mentioning all this is to highlight to you that with Traction Uranium, this is a high-risk and high-reward venture opportunity, especially if and when they can strike it big. The sky is the limit, as the saying goes. The company has the right team, the right structure in place, well-funded, and knows exactly what needs to be done to achieve the goals., the company can go from a $25 million cap to something much bigger. So what are you waiting for? You can either invest in Traction Uranium, stock ticker TRCTF, today, or let this opportunity slip by as demand for uranium is only going to grow moving forward. Once again, the company is Traction Uranium, Stock ticker is TRCTF. Check it out. And remember, there is always risk in investments and there are no guarantees. Thank you.