Top 6 Rick Rule Uranium Insights for Investors – June 2022

Rick Rule is a billionaire investor and focuses on natural resources like gold, silver, copper and uranium. As the world moves away from fossil fuels like Coal, it’s becoming increasingly clear windmills and solar panels won’t cut it. And that’s where nuclear energy steps into the globe’s zero-carbon future. Rick Rule describes uranium and where it’s heading within the investment markets as a “No Brainer”. Read on for analysis and the top 6 uranium insights provided by Rick Rule, THE uranium expert.

Who is Rick Rule (and Why Should You Care)

Rick Rule is a highly renowned, seasoned investor and chief executive of Sprott US holdings. And I did mention his networth, he’s a billionaire…. His expertise lies in the natural resource industries with more than 30 years of experience within the sector. Rick Rule is a frequent speaker and commentator on precious metals. He is famous for seeking value and investment opportunities within natural resources that are “out of favour with the general investment community”. Rick goes against the grain when investing. And in a time of increasing uncertainty about markets and geopolitics, precious metals can serve as a hedge against the current market. Rick is super smart, articulate and he will tell you what no one else will. He is a valuable resource for all investors.  

Top 6 Rick Rule Insights About Uranium

There is nervousness and instability in the world with a war, an increasing lack of confidence which could lead to a global recession, and then potentially a depression. That’s where natural resources come in and Rick’s expertise in Uranium could help you make it big. Read on for my top insights from Rick Rule’s chat with Kerry Stevenson via SmallCaps.

1. Why the Future of the Uranium Market is a “No Brainer” 

As we move to a zero carbon emission world, amidst an energy crisis fuelled by the war in the Ukraine amongst other global factors. What is Rick’s view on where the Uranium market is heading within this Global climate? Rick described it as a “no brainer” as he evaluates risk vs reward. 

“There are points in time when I think that the uranium stocks are ahead of themselves or that the narrative has overrun the reality. There are other points in time where the uranium investor is a manic depressive. It would seem we’re in a circumstance now where the uranium price may have two or $3 downside US dollars per pound. It probably has 30 or $35 upside. And if I look at my downside, let’s be generous and say my downside is five US dollars. And my upside is 30 or 35. That’s a pretty good juxtaposition of risk vs reward.”

Rick can see a lot of potential upside in Uranium. And he goes on to prove his thesis within the following 5 points.

2. Why Rick Rule Is the Uranium expert.

Rick lives and breathes natural resources, so you better believe he didn’t get his Uranium insight from an uncle at a BBQ on the weekend. His research is intensive, and that is why he is a trusted Global resource in the industry. 

“I monitor 75 public uranium companies in the world. I can at the right price only buy 12 with a straight face. In other words, there’s too many pretenders in the space. But I think if you focus on those companies in days when equity markets, tertiary markets, speculative markets are getting crushed… Then it’s a wonderful place to be as a speculator. It’s particularly wonderful.”

Rick has a Global view of uranium, he knows what is happening where. Interesting to note, his bullishness on uranium has a strong connection to Japan and their current relationship with uranium and nuclear power.

rick rule uranium stocks
Now that Nuclear is considered safe… Look at my sweet, sweet stocks go!

3. Why Japan Is Restarting 16 Nuclear Reactors

Energy supply is crucial for any country to survive and keep it’s population out of poverty. Rick looks back at the history of Japan and their first foray into nuclear energy in the face of energy security. And why Uranium was the best choice for the Japanese all those years ago, and why those reasons still apply today. 

Japan became the second largest consumer of uranium in the world as a direct aftermath of the Arab oil embargo in 1975. When the geopolitics of energy supply were painfully forced on Japan, the Japanese decided that they would go to a fuel that was energy dense. It was enough that you could store enough to supply the whole country for five or six years. The only fuel that meets that description is uranium.

And Rick continues to the current state of Japan and their need for nuclear power. And teh speed at which they are restarting their reactors.

“… Japan recognizes that she needs non carbon generating power. And the recognition that the global supply chain of all things energy is very fragile, as was demonstrated by Russia. This seems to mean that the pace of Japanese restarts in uranium, is very quick.

To prove Rick’s point on the speed of energy restarts in Japan. Two reactors restarted in August and October in 2015, with a further eight having restarted since. There are currently 16 reactors in the process of restart approval. Despite the past, Japan is looking to uranium and nuclear power as the future and ramping up in the process.

4. Why Uranium is the Future…Now… in 2022

Where people may look to China for Uranium consumption in 10-15 years, Rick believes we should look to Japan now. The fact that Japan recognizes that it needs non-carbon generating power and the global supply chain for energy is very fragile. The future is NOW. 

“I’ve been for years saying Someday. 2024. 2025. 2026. I think 2022 now. That’s very important when uranium commentators look at the price of uranium. They point towards new plant construction in China and other places. From the time those plants are conceived until the time that they’re consuming uranium is frequently 12 to 15 years. The pace of Japanese restarts can occur in three or four months on a net present value basis.”

Rick believes the Japanese restarts would impact that supply/demand equation and put some heat into the uranium price, which is worth watching at the moment.  

“Increases in consumption that happen in 2022 are much more important than increases in consumption that happen in 2032. And so for that reason, I’m particularly attracted to the uranium space or restart. The restart of the entire remaining un-started Japanese fleet would add between 10 and 12 million pounds a year of consumption. But importantly, too… I think it would remove almost all of the available supplies remaining in the spot market

Rick believes those restarted Japanese plants would remove all available supplies. Therefore, that supply would need to be replenished.

rick rule nuclear in japan
Interesting Data from Japan – April 2022 from the World Nuclear Association

5. Why Public Support for Nuclear in Japan is Now Positive

The Japanese public can never forget the Fukushima incident. There has been a widespread public opposition to restarting nuclear power plants, although the Government and big business has always wanted to restart their nuclear fleet of plants. But things have started to change, as revealed by Rick and his consultants on the ground in Japan. 

“The Japanese press now expresses a very, very, very different opinion. Now there’s a groundswell of public support in Japan. For Japan as an example, meeting their original Kyoto protocols. The only way they can do that is to return to nuclear power.”

The Japanese are also feeling the pain in gas shortages, as Rick explains. 

“Similarly, the interruption of seaboard liquefied natural gas to Japan has been disrupted by the war. This was their substitute for nuclear. And there’s a growing realization that well, Fukushima was a catastrophe. But It was more of a natural catastrophe than a plant failure. And the idea that the best chance that Japan has for reliable and economic energy is in fact nuclear Power is important.

6. The Japanese Know Nuclear is the Right Choice

Japan and China have ongoing geo-political disagreements. They are “hostile neighbours”. That competitiveness between the countries can extend itself to energy security and the type of energy used. Is the energy clean or dirty? Is it good for the people and the globe? Or is it bad? Japan can use this shift to pro-nuclear sentiment to do what it wants to do… Load up on nuclear power. Here’s Rick. 

“Very recently too, across the South China Sea in the Sea of Japan. The Chinese government publicly stated that particular pollution from electricity generation kills 500,000 Chinese a year. I think that realization is increasingly important to the Chinese Of course, who are building nuclear power plants but building coal plants too – like mad. 

And Rick continues…

The Japanese understand that they are rich enough to have a choice between the type of generation that they want to see. And I think for them, the choice is clear. And it would seem the popular sentiment has shifted from anti nuclear to pro nuclear. In other words, Japan will be allowed to do what it otherwise wanted to do.

In other words, the public has slowly shifted back towards nuclear power. The Government will now be able to do what it wants to do, utilise clean, reliable uranium as it’s main power source with most of the people and the media supporting the move.

Rick Rule on Uranium: Key Takeaways

Rick is all in on natural resources and that includes Uranium. Every time he speaks about uranium across other programs, he offers new insights into his thinking. And he’s a multi-billionaire, so he must be doing something right.  

My super fast, key takeaways are: 

  • Uranium is a “no-brainer” for energy security and a zero-carbon world. 
  • The future for Uranium isn’t in 10 or 15 years waiting for China
  • The future is now (in 2022) because of Japan and it’s fleet of reactors.
  • Despite the Fukushima tragedy, Japan has shifted towards being pro-nuclear 
  • Coal is dirty, Uranium is clean. Nations that want a dispatchable source of clean, cheap power will all eventually realise Nuclear is the only answer.
  • And in case you are wondering which Australian stocks Rick likes specifically, he is a fan of Lotus, Paladin, Boss and Deep Yellow as stated here:

Summary

I love Rick Rule and his insights are always top notch. This interview got me Big-Kev excited about uranium. I already know it’s the future of clean power generation. But according to Rick, the future isn’t so far away. Rick is a great commentator and worth following for all his insights, on gold, lithium and anything else you can dig out of the ground.  

I hope you enjoyed my analysis, let me know what you think. Drop a comment below, watch the linked video or maybe take a look at all the content on the blog.

M. Moneyman

MAILBOX MONEYMAN

Financial Failure to Financially Free

As a lifelong financial failure with a young family and deep in debt, I was made redundant 3 times in 2 years and in serious trouble. I had a “Financial Awakening”, I learned about personal finance and gained a financial education to accumulate 7 figures in assets.

My personal goal is to invest in myself, compound my knowledge and build wealth using three simple strategies. Save more money. Make more money. Learn about money. I’m living proof, that through the power of financial education, anyone can achieve financial independence. My sincere hope is that you will be able to learn from my journey and my blog.

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