Nuclear Energy Stocks

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>>> Centrus Reports Third Quarter 2023 Results


PR Newswire

November 7, 2023


https://finance.yahoo.com/news/centrus-reports-third-quarter-2023-221500136.html


Began production of High-Assay Low-Enriched Uranium (HALEU) in October 2023 and Completed Phase I of Department of Energy contract in November 2023.

Annuitized $186.5 million of pension plan obligations for 1,400 beneficiaries, de-risking balance sheet and improving the capital structure

Net income of $8.2 million on $51.3 million in revenue, compared to net loss of $6.1 million on $33.2 million in revenue in Q3 2022

Consolidated cash balance of $183.3 million as of September 30, 2023


BETHESDA, Md., Nov. 7, 2023 /PRNewswire/ -- Centrus Energy Corp. (NYSE American: LEU) ("Centrus" or the "Company") today reported third quarter 2023 results. The Company reported net income of $8.2 million for the three months ended September 30, 2023, compared to a net loss of $6.1 million for the three months ended September 30, 2022. The net income per common share in the three months ended September 30, 2023 was $0.53 (basic) and $0.52 (diluted).

"Centrus made history on October 11, inaugurating the first new U.S.-technology, U.S.-owned uranium enrichment plant to begin production since 1954," said Centrus President and CEO Daniel B. Poneman. "Our team completed this work under budget and ahead of schedule, proving once again our ability to execute on complex, mission-critical projects. As we pursue our goal of expanding the plant to meet the full range of commercial and national security requirements for enriched uranium, we are heartened by the growing momentum in Congress and the Administration to support a major federal investment in restoring America's domestic enrichment capacity. Centrus stands ready to do our part to help reclaim America's global leadership in nuclear fuel production."

The quarter also demonstrated Centrus' critical role in the supply chain to deploy advanced nuclear reactors through the Memoranda of Understanding concluded with TerraPower and Oklo.

Our financial results vary from quarter to quarter based on the timing of contracted deliveries and the specific contract terms. The majority of our LEU contracts are multi-year arrangements in which customers have annual purchase obligations, but can choose in which quarter to take delivery. We record the revenue and cost of sales in the quarter when deliveries are made, which can vary throughout the year, but tends to even out on an annual basis.

Financial Results

Centrus generated total revenue of $51.3 million and $33.2 million for the three months ended September 30, 2023 and 2022, respectively, an increase of $18.1 million.

Revenue from the LEU segment was $40.5 million and $20.2 million for the three months ended September 30, 2023 and 2022, respectively, an increase of $20.3 million. The increase was due to the $32.8 million increase in SWU revenue, partially offset by the $12.5 million decrease in uranium revenue for the three months ended September 30, 2023. The increase in SWU revenue was due to an increase in the volume of SWU sold and an increase in the average price of SWU sold.

Revenue from the Technical Solutions segment was $10.8 million and $13.0 million for the three months ended September 30, 2023 and 2022, respectively, a decrease of $2.2 million. The decrease was primarily related to the transition from the HALEU Demonstration Contract to the HALEU Operation Contract in late 2022. For the three months ended September 30, 2023, the HALEU Operation Contract generated $8.9 million in revenue. The HALEU Demonstration Contract generated $1.3 million in revenue for the three months ended September 30, 2023, compared to $11.7 million in revenue for the same period in 2022.

Cost of sales for the LEU segment was $30.4 million and $18.9 million for the three months ended September 30, 2023 and 2022, respectively, an increase of $11.5 million. The increase was due to a $23.9 million increase in SWU costs, partially offset by a $12.4 million decrease in uranium costs. The increase in SWU costs reflected an increase in the volume of SWU sold and an increase in the average unit cost of SWU sold. Cost of sales for the three months ended September 30, 2023 included $0.6 million for the revaluation of inventory loans.

Cost of sales for the Technical Solutions segment was $9.6 million and $12.0 million for the three months ended September 30, 2023 and 2022, respectively, a decrease of $2.4 million. The decrease was related to a decrease of $10.8 million of costs associated with the HALEU Demonstration Contract signed in 2019 and a decrease in costs of approximately $1.0 million associated with other contracts, partially offset by $9.4 million of costs incurred for the HALEU Operation Contract signed in 2022.

Gross profit for the Company was $11.3 million and $2.3 million for the three months ended September 30, 2023 and 2022, respectively. The increase for the three months ended September 30, 2023 was due primarily to the specific contract and pricing mix of SWU contracts and the timing of their deliveries quarter over quarter. This was reflected by an increase in the volume of SWU sold and an increase in the average profit margin per SWU.

HALEU Update

On September 6, 2023, the Company announced that it was conducting final system tests and other preparations so that production of HALEU could commence at our American Centrifuge Plant in Piketon, Ohio. On September 21, 2023, the Nuclear Regulatory Commission granted final approval for the Company to produce the quantity of HALEU required by Phase 1 of the contract. On October 11, 2023, the Company announced the beginning of enrichment operations. On November 6, 2023, the Company completed production of the initial 20 kilograms of HALEU UF6 under Phase 1 of the HALEU Operation Contract. In Phase 2 of the contract that has a cost-plus-incentive-fee structure, Centrus is required to produce 900 kilograms of HALEU UF6. The Department of Energy takes delivery of the HALEU on site in Piketon and is obligated to provide the HALEU storage cylinders to collect the HALEU from the cascade; Centrus has constructed a storage facility where the HALEU will be kept until it is needed.

TerraPower and Oklo Memoranda of Understanding

In July and August, 2023, the Company signed memoranda of understanding with TerraPower and Oklo, respectively, to support the deployment of additional HALEU production capacity in Piketon, Ohio subject to negotiating definitive agreements. Centrus and TerraPower will collaborate to ensure that TerraPower's Natrium demonstration reactor has access to HALEU at the milestones necessary to meet the TerraPower project's 2030 operation date. Centrus and Oklo will collaborate on activities including Oklo's purchase of HALEU and manufactured components from Centrus, and Centrus' purchase of electricity from Oklo's planned Aurora powerhouses in Piketon, Ohio.

Pension Annuitization

On October 12, 2023, the Company entered into an agreement to purchase a group annuity contract for one of its pension plans and transfer approximately $186.5 million of its pension plan obligations, or 41% of its obligations for the plan, based on the December 31, 2022 valuation, to an insurer. The purchase of the group annuity contract was funded directly by the assets of the pension plan of approximately $171.4 million. The purchase resulted in a transfer of administrative and benefit paying responsibilities for approximately 1,400 beneficiaries to the insurer. Centrus believes this move will de-risk its balance sheet by reducing its risk for current and future liabilities at no detriment to pensioners. The Company estimates that the income related to the pension settlement recognized in the fourth quarter will be approximately $15.1 million, dependent upon the completion and final pricing of the annuity transaction The settlement charge will be recognized in nonoperating components of net periodic benefit loss (income) in our consolidated statements of operations.

About Centrus Energy Corp.

Centrus Energy is a trusted supplier of nuclear fuel and services for the nuclear power industry. Centrus provides value to its utility customers through the reliability and diversity of its supply sources – helping them meet the growing need for clean, affordable, carbon-free electricity. Since 1998, the Company has provided its utility customers with more than 1,750 reactor years of fuel, which is equivalent to 7 billion tons of coal. With world-class technical and engineering capabilities, Centrus is also advancing the next generation of centrifuge technologies so that America can restore its domestic uranium enrichment capability in the future.

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>>> Centrus Makes First HALEU Delivery to U.S. Department of Energy


PR Newswire

November 7, 2023


https://finance.yahoo.com/news/centrus-makes-first-haleu-delivery-113000606.html


BETHESDA, Md., Nov. 7, 2023 /PRNewswire/ -- Today, Centrus Energy Corp. announced that it has made its first delivery of High-Assay, Low-Enriched Uranium (HALEU) to the U.S. Department of Energy, completing Phase One of its contract with the Department by successfully demonstrating its HALEU production process. Centrus will now move on to Phase Two of the contract – requiring a full year of HALEU production at the rate of 900 kilograms per year at its American Centrifuge Plant in Piketon, Ohio.

"Centrus is proud to be pioneering American HALEU production, with our first delivery of the fuel that is urgently needed to support the demonstration and commercialization of advanced reactors," said Centrus President and CEO Daniel B. Poneman. "This critical milestone is essential to meeting the Department's near-term HALEU needs, while laying the groundwork for the full restoration of America's lost domestic uranium enrichment capacity. We are committed to working with the Department and industry to build a public-private partnership so that we can scale up production in the coming years to meet the full range of commercial and national security requirements for enriched uranium."

"Our HALEU team has worked exceptionally hard to complete this project ahead of schedule and under budget – showing we can execute on big, complicated projects and deliver value to our customers," said Centrus Senior Vice President of Operations Larry Cutlip. "We are grateful to have had the opportunity to demonstrate and expand our capabilities and expertise over the course of this work and look forward to embarking on the next phase of this important effort."

Under a competitively awarded, cost-share contract signed with the U.S. Department of Energy in 2022, Centrus was required to begin production of HALEU by the end of this year. Centrus began enrichment operations in October – two months ahead of schedule. By completing delivery of more than 20 kilograms of HALEU to the Department, Centrus has finished Phase One of the contract. The Department takes delivery of the HALEU on site in Piketon and is obligated to provide the HALEU storage cylinders to collect the HALEU from the cascade; Centrus has constructed a storage facility where the HALEU will be kept until it is needed.

Phase One included a 50 percent cost share requirement for Centrus, with the company and the Department each contributing about $30 million of the $60 million overall cost. In Phase Two of the contract, the Department will pay Centrus on a cost-plus incentive fee basis for the HALEU the company produces.

HALEU is an advanced nuclear fuel required for most of the next-generation reactor designs currently under development. The capacity of the 16-centrifuge cascade is modest – about 900 kilograms of HALEU per year – but with sufficient funding and offtake commitments, Centrus could significantly expand production. A full-scale HALEU cascade, consisting of 120 centrifuge machines, with a combined capacity to produce approximately 6,000 kilograms of HALEU per year (6 MTU/year), could be producing HALEU within 42 months after securing the necessary funding. With appropriate support, Centrus could add a second HALEU cascade six months later and subsequent cascades every two months after that. That would mobilize hundreds of union workers in Ohio to build and operate the plant, while supporting thousands of direct and indirect jobs across a nationwide manufacturing supply chain. The Piketon facility has ample space for the thousands of machines that will be needed to meet the growing demand for enriched uranium in the decades to come.

About Centrus Energy

Centrus Energy is a trusted supplier of nuclear fuel and services for the nuclear power industry. Centrus provides value to its utility customers through the reliability and diversity of its supply sources – helping them meet the growing need for clean, affordable, carbon-free electricity. Since 1998, the Company has provided its utility customers with more than 1,750 reactor years of fuel, which is equivalent to 7 billion tons of coal. With world-class technical and engineering capabilities, Centrus is also advancing the next generation of centrifuge technologies so that America can restore its domestic uranium enrichment capability in the future.

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[gfp927z]

Sorry to see you leaving, but I guess spending more time with your girlfriend is a great alternative :o) Hopefully you will return to posting here on I-Hub, at least occasionally. As the ancient saying goes -- 'Everything in Moderation' :o) I will miss you.

Here's hoping the world situation improves. Things go in cycles, as the song says - 'There is a season and a time for every purpose' -

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[wow_happens28]

Gfp, I am alive, but leaving stock boards. Computer broke down and I don't miss it all much, and girl friend moving in with me and not so much free time. The whole world so messed up, nothing is safe in investing, IMO, maybe paper money, from a while any way. You are a goodman, been nice posting with you.

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>>> An Iranian nuclear facility is so deep underground that US airstrikes likely couldn’t reach it


Associated Press

BY JON GAMBRELL

May 22, 2023


https://apnews.com/article/iran-nuclear-natanz-uranium-enrichment-underground-project-04dae673fc937af04e62b65dd78db2e0


DUBAI, United Arab Emirates (AP) — Near a peak of the Zagros Mountains in central Iran, workers are building a nuclear facility so deep in the earth that it is likely beyond the range of a last-ditch U.S. weapon designed to destroy such sites, according to experts and satellite imagery analyzed by The Associated Press.

The photos and videos from Planet Labs PBC show Iran has been digging tunnels in the mountain near the Natanz nuclear site, which has come under repeated sabotage attacks amid Tehran’s standoff with the West over its atomic program.

With Iran now producing uranium close to weapons-grade levels after the collapse of its nuclear deal with world powers, the installation complicates the West’s efforts to halt Tehran from potentially developing an atomic bomb as diplomacy over its nuclear program remains stalled.

Completion of such a facility “would be a nightmare scenario that risks igniting a new escalatory spiral,” warned Kelsey Davenport, the director of nonproliferation policy at the Washington-based Arms Control Association. “Given how close Iran is to a bomb, it has very little room to ratchet up its program without tripping U.S. and Israeli red lines. So at this point, any further escalation increases the risk of conflict.”

The construction at the Natanz site comes five years after then-President Donald Trump unilaterally withdrew America from the nuclear accord. Trump argued the deal did not address Tehran’s ballistic missile program, nor its support of militias across the wider Middle East.

But what it did do was strictly limit Iran’s enrichment of uranium to 3.67% purity, powerful enough only to power civilian power stations, and keep its stockpile to just some 300 kilograms (660 pounds).

Since the demise of the nuclear accord, Iran has said it is enriching uranium up to 60%, though inspectors recently discovered the country had produced uranium particles that were 83.7% pure. That is just a short step from reaching the 90% threshold of weapons-grade uranium.

As of February, international inspectors estimated Iran’s stockpile was over 10 times what it was under the Obama-era deal, with enough enriched uranium to allow Tehran to make “several” nuclear bombs, according to the head of the International Atomic Energy Agency.

President Joe Biden and Israel’s prime minister have said they won’t allow Iran to build a nuclear weapon. “We believe diplomacy is the best way to achieve that goal, but the president has also been clear that we have not removed any option from the table,” the White House said in a statement to the AP.

The Islamic Republic denies it is seeking nuclear weapons, though officials in Tehran now openly discuss their ability to pursue one.

Iran’s mission to the United Nations, in response to questions from the AP regarding the construction, said that “Iran’s peaceful nuclear activities are transparent and under the International Atomic Energy Agency safeguards.” However, Iran has been limiting access for international inspectors for years.

Iran says the new construction will replace an above-ground centrifuge manufacturing center at Natanz struck by an explosion and fire in July 2020. Tehran blamed the incident on Israel, long suspected of running sabotage campaigns against its program.

Tehran has not acknowledged any other plans for the facility, though it would have to declare the site to the IAEA if they planned to introduce uranium into it. The Vienna-based IAEA did not respond to questions about the new underground facility.

The new project is being constructed next to Natanz, about 225 kilometers (140 miles) south of Tehran. Natanz has been a point of international concern since its existence became known two decades ago.

Protected by anti-aircraft batteries, fencing and Iran’s paramilitary Revolutionary Guard, the facility sprawls across 2.7 square kilometers (1 square mile) in the country’s arid Central Plateau.

Satellite photos taken in April by Planet Labs PBC and analyzed by the AP show Iran burrowing into the Kuh-e Kolang Gaz La, or “Pickaxe Mountain,” which is just beyond Natanz’s southern fencing.

A different set of images analyzed by the James Martin Center for Nonproliferation Studies reveals that four entrances have been dug into the mountainside, two to the east and another two to the west. Each is 6 meters (20 feet) wide and 8 meters (26 feet) tall.

The scale of the work can be measured in large dirt mounds, two to the west and one to the east. Based on the size of the spoil piles and other satellite data, experts at the center told AP that Iran is likely building a facility at a depth of between 80 meters (260 feet) and 100 meters (328 feet). The center’s analysis, which it provided exclusively to AP, is the first to estimate the tunnel system’s depth based on satellite imagery.

The Institute for Science and International Security, a Washington-based nonprofit long focused on Iran’s nuclear program, suggested last year the tunnels could go even deeper.

Experts say the size of the construction project indicates Iran likely would be able to use the underground facility to enrich uranium as well — not just to build centrifuges. Those tube-shaped centrifuges, arranged in large cascades of dozens of machines, rapidly spin uranium gas to enrich it. Additional cascades spinning would allow Iran to quickly enrich uranium under the mountain’s protection.

“So the depth of the facility is a concern because it would be much harder for us. It would be much harder to destroy using conventional weapons, such as like a typical bunker buster bomb,” said Steven De La Fuente, a research associate at the center who led the analysis of the tunnel work.

The new Natanz facility is likely to be even deeper underground than Iran’s Fordo facility, another enrichment site that was exposed in 2009 by U.S. and other world leaders. That facility sparked fears in the West that Iran was hardening its program from airstrikes.

Such underground facilities led the U.S. to create the GBU-57 bomb, which can plow through at least 60 meters (200 feet) of earth before detonating, according to the American military. U.S. officials reportedly have discussed using two such bombs in succession to ensure a site is destroyed. It is not clear that such a one-two punch would damage a facility as deep as the one at Natanz.

With such bombs potentially off the table, the U.S. and its allies are left with fewer options to target the site. If diplomacy fails, sabotage attacks may resume.

Already, Natanz has been targeted by the Stuxnet virus, believed to be an Israeli and American creation, which destroyed Iranian centrifuges. Israel also is believed to have killed scientists involved in the program, struck facilities with bomb-carrying drones and launched other attacks. Israel’s government declined to comment.

Experts say such disruptive actions may push Tehran even closer to the bomb — and put its program even deeper into the mountain where airstrikes, further sabotage and spies may not be able to reach it.

“Sabotage may roll back Iran’s nuclear program in the short-term, but it is not a viable, long-term strategy for guarding against a nuclear-armed Iran,” said Davenport, the nonproliferation expert. “Driving Iran’s nuclear program further underground increases the proliferation risk.”

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>>> Centrus Energy Corp. (LEU) supplies nuclear fuel and services for the nuclear power industry in the United States, Japan, Belgium, and internationally. The company operates through two segments, Low-Enriched Uranium (LEU) and Technical Solutions. The LEU segment sells separative work units (SWU) component of LEU; SWU and natural uranium components of LEU; and natural uranium for utilities that operate nuclear power plants. The Technical Solutions segment offers technical, manufacturing, engineering, procurement, construction, and operations services to public and private sector customers, including the American Centrifuge engineering and testing activities. The company was formerly known as USEC Inc. and changed its name to Centrus Energy Corp. in September 2014. Centrus Energy Corp. was incorporated in 1998 and is headquartered in Bethesda, Maryland.

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[gfp927z]

>> reasons stocks will go up? >>

On the plus side, the Fed is almost done tightening, inflation has come down a lot, and the economy has been resilient. And near term, I think the Fed has been trying to prop up the market to offset the bearish effects from the Israel-Hamas war. It appears the PPT / Plunge Protection Team stepped in, and several Fed Governors issued dovish guidance, so an attempt to prevent a selloff due to the war.

On the negative side, there are lots of reasons to stay out of the market and collect the easy 5% in cash / T-Bills. Tough to say, but probably not a time to stick one's neck out too far. Fwiw, I'm sitting at 18% for the stock allocation, so fairly low, and also decided to put it exclusively in the S+P 500 instead of individual stocks / sector ETFs. The long term goal will be to maintain a 20% stock allocation, but still a 'work in progress'. It sure seems like a tough time to be an investor, but at least cash and bonds are now paying a good % rate, so less reason to be in stocks.




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[wow_happens28]

What reason is there that stocks will go up? The fact that is has not gone down with all the bad news is suspicious. IMO the powers that be are convincing the sheeple to not worry about a crash? Most moving averages are at some kind of support line, either flat or rising bottom. They don't want a crash too close to the cheatlection, so watch out soon?

https://finviz.com/futures_charts.ashx?t=ER2&p=w

URA made a triple top?

https://stockcharts.com/h-sc/ui?s=URA&p=D&yr=5&mn=0&dy=0&id=p47054114064

[gfp927z]

Fwiw, I decided to exit my nuke positions (LEU, URA, URNM, NLR). They were only tiny amounts, but I just don't have a good feel for this sector. Hopefully nuclear power continues its apparent turnaround, but it isn't too hard to imagine seeing Iran's nuclear plants targeted for destruction by US / Israel in the not too distant future. That would be a major setback for nuclear power, seeing how vulnerable these plants are to attack, and how big parts of a country can be made radioactive ala Chernobyl. Anyway, too many unknowns and landmines in this sector imo.



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[gfp927z]

>> big oil be behind an accident or 2 <<

Looking at who would benefit, derailing nuclear power would mainly benefit the US/West globalists They already don't like nuclear, and even more now since nuclear is such a big part of the appeal of joining BRICS. One way to derail BRICS expansion would be to remove nuclear power as an option for these emerging countries. So if desperate enough, the globalist ghouls would deliberately blow up a nuclear plant or two to 'poison the well' for nuclear power generally.

For example, they stage an event where a 'terrorist' group destroys a nuclear plant in an emerging country, thus demonstrating the extreme vulnerability of having nuclear in your country, and the devastating effects if a country's enemies decide to target their shiny new nuke plant. This would instantly reverse the appeal of nuclear power, and thus remove a key motivation for joining BRICS. For emerging countries, nuclear power is extremely attractive and has tons of advantages, but not if the plant can be easily blown up by your regional rivals or domestic enemies. A chunk of your country ends up like Chernobyl -- irradiated and uninhabitable for 1000 years, So these emerging countries decide to forget it, and stick with natural gas, solar, anything but nuclear.

Anyway, this is one possible NWO strategy for not only derailing BRICS expansion, but also for preventing nuclear proliferation. Another broad goal is to prevent emerging countries from modernizing too much, thus keeping them weak and easily exploitable. The globalists mainly are interested in controlling the mineral riches found in these emerging countries, and want the country to have enough infrastructure to facilitate mining operations, etc, but not enough to improve conditions for the general population, which otherwise makes the country too uppity and independent.

Author John Perkins explains the process in his famous book 'Confessions of an Economic Hitman' (link below). The globalists first get the emerging country into serious debt trouble via IMF loans, and then offer debt relief in exchange for control of the country's mineral riches. For decades this IMF con job was the only game in town, but then China entered the picture with far better terms / outcomes for these emerging countries. Hence the wide appeal for joining BRICS -

https://en.wikipedia.org/wiki/John_Perkins_(author)



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[wow_happens28]

I wouldn't be surprised to see big oil be behind an accident or 2. We' never know though. But that though has to be a concern to nuclear investors.

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>>> South Carolina nuclear plant gets yellow warning over another cracked emergency fuel pipe


10-9-23

Associated Press

https://www.msn.com/en-us/news/us/south-carolina-nuclear-plant-gets-yellow-warning-over-another-cracked-emergency-fuel-pipe/ar-AA1hW8fE?OCID=ansmsnnews11


JENKINSVILLE, S.C. (AP) — Federal officials have issued a warning about a substantial safety violation at a South Carolina nuclear plant after cracks were discovered again in a backup emergency fuel line.

Small cracks have been found a half-dozen times in the past 20 years in pipes that carry fuel to emergency generators that provide cooling water for a reactor if electricity fails at the V.C. Summer plant near Columbia, according to the U.S. Nuclear Regulatory Commission.

The agency issued what it calls a preliminary "yellow” warning to plant owner Dominion Energy last week.

It is the second most serious category and only seven similar warnings have been issued across the country since 2009, nuclear power expert David Lochbaum told The State newspaper after reviewing records from federal regulators

The commission's ruling is not final and Dominion will have a chance to explain what happened, utility spokesman Darryl Huger told the paper in an email.

Dominion has already started to put in place a plan to improve the reliability of the backup system, Huger said.

A crack first appeared on a diesel fuel pipe in 2003, and similar pipes have had other cracks since then.

During a 24-hour test of the system in November, a small diesel fuel leak grew larger, according to NRC records.

The agency issued the preliminary yellow warning because of the repeated problems. Virginia-based Dominion hasn't been the only owner of the plant. SCANA built and started the plant in 1984. The South Carolina company had plans to build two more reactors, but billions of dollars of cost overruns forced it to abandon the project in 2017 and sell to Dominion.

Dominion has recently requested to renew the license for the nuclear plant for an additional 40 years

Longtime nuclear safety advocate Tom Clements told the newspaper the pipe problems should mean a lot more scrutiny by regulators.

"This incident serves as a wake-up call to fully analyze all such systems prior to a license-renewal determination,’’ Clements said in an email.

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[gfp927z]

>> individual company <<

The only nuclear stock I own is Centrus Energy (LEU), due to the HALEU angle, but it's only a $500 position (9 shares). I know almost nothing about this sector, but figure that a little exposure might make sense. But lots of potential landmines, so only token positions. I have tiny amounts in NLR, URA, URNM, but only $300 each, so basically just 'winging it' :o)

I figure if a key driver of BRICS expansion is that China and Russia are actively building nuke plants for emerging countries, this should at least ensure global demand for uranium (URA, URNM). And it also pushes the US toward expanding nuclear power, albeit reluctantly. And since the newer generation nuke plants like SMRs will need HALEU, then Centrus should benefit, especially since the US needs to restart its enrichment activities anyway, in order to break Russia's monopoly on enrichment.

But who knows, these are just vague hunches on my part. Some of the posters on Dew's board could have some more informed opinions. One of the posters knows a ton about the lithium mining side (link below), but not sure if he also follows the nuclear sector.

Either way, I'd be cautious with nuke related investing since the US/West globalists have been so dead set against nuclear for decades. The only reason they seem to be back on board with nuclear is they are forced to in order to compete with China-Russia-BRICS. They need to stop BRICS expansion, but it's late, and one desperation move would be to stage a nuclear event, a powerplant explosion, which would once again derail nuclear development worldwide. There's also the proliferation aspect, and it's hard to believe that they'll allow HALEU to proceed very far. Who knows, but best to keep the nuke sector as a very small sliver of one's portfolio imo.


https://investorshub.advfn.com/boards/read_msg.aspx?message_id=171879461



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[wow_happens28]

gfp You are more into this than me, so I ask, what is the best place right now in an individual company, not a fund, to invest in nuclear today? In your opinion, won't sue you if wrong, lol.

[gfp927z]

>>> Helion is a fusion power company focused on generating zero-carbon electricity from fusion. By building on the successes of its latest fusion prototypes, Helion is building the world’s first fusion electricity demonstration facility. Their pulsed non-ignition technology will be capable of low-cost 24/7 power generation that replaces the energy sources the world currently relies on, enabling a future with limitless, reliable and affordable clean electricity.

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https://www.crunchbase.com/organization/helion-energy?utm_source=yahoo&utm_medium=referral&utm_content=profile_cta&utm_campaign=yahoo_finance


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[wow_happens28]

Small Nuclear Reactors: The Answer To Big Tech's Energy Crisis?

https://oilprice.com/Alternative-Energy/Nuclear-Power/Small-Nuclear-Reactors-The-Answer-To-Big-Techs-Energy-Crisis.html

Microsoft hints at its nuclear plans by posting a job for a "Principal Program Manager Nuclear Technology" to explore integrating SMRs into its operations.
Small Nuclear Reactors offer quick deployment, reduced costs, and enhanced safety features, with over 80 designs under global development.
Challenges like sourcing materials for SMR development, particularly from politically complex regions, may delay their commercial rollout.

Microsoft could be the first of several companies to prepare to use small nuclear reactor (SMR) technology for its high energy consumption, as AI and other technologies become more widely used. There has been great enthusiasm around the potential of SMRs, which could be built faster and at a much lower cost than a traditional nuclear reactor. This month, Microsoft posted a job opportunity for a “Principal Program Manager Nuclear Technology,” suggesting its interest in using SMRs in the future, to support its energy-intensive operations. As companies begin to use a vast range of digital technologies in their day-to-day operations, their energy consumption could increase substantially, making the use of low-carbon nuclear power increasingly attractive.

SMRs are advanced nuclear reactors that have a power capacity of up to 300 MW(e) per unit, equivalent to around one-third the generating capacity of a traditional nuclear reactor. SMRs are much smaller than traditional reactors and are modular, making it simpler for them to be assembled in factories and transported to site. Because of their smaller size, it is possible to install an SMR on sites that are not suitable for bigger reactors. They are also significantly cheaper and faster to build than conventional nuclear reactors and can be constructed incrementally to meet the growing energy demand of a site.
There are strong safety margins included in SMR production, meaning that the potential for the unsafe release of radioactivity to the environment is significantly reduced. These systems can be shut down automatically, without human assistance, in the case of a malfunction. At present, there are over 80 commercial SMR designs under development worldwide, aimed at responding to a range of needs. Although companies are still trepidatious about investing in SMRs as their economic competitiveness in use has yet to be proven. As energy companies begin to roll out SMRs within the next decade there will be a greater understanding of their applicability and the costs involved.

Despite still being in the development stage, Microsoft appears to be one of the first companies to demonstrate its interest in SMRs. As companies continue to digitalise operations and conduct high-energy operations, they will need an increasing amount of energy to power their activities. For example, AI researchers suggest that training a “single large language deep learning model” such as OpenAI’s GPT-4 creates around 300 tonnes of CO2. The average person is responsible for creating around 5 tonnes of CO2 a year, showing just how significant this is.

Microsoft now appears to be drawing up a roadmap for the use of SMR to power its computation needs. This month, the company posted a job description to hire a nuclear technology expert to lead the company’s technical assessment for integrating small modular nuclear reactors and microreactors “to power the datacentres that the Microsoft Cloud and AI reside on.” The post reads that Microsoft is seeking a “principal program manager for nuclear technology”, who “will be responsible for maturing and implementing a global Small Modular Reactor (SMR) and microreactor energy strategy.”

This is not the first time the tech giant has shown interest in nuclear power. In May, Microsoft signed a power purchase agreement with Helion, a nuclear fusion start-up, to purchase electricity from it starting in 2028. And Bill Gates, Microsoft’s co-founder, is the chairman of the board of Terrapower, a company that is currently developing SMR technology. Although there has been no suggestion that Terrapower will provide Microsoft with any nuclear reactors.

Microsoft is showing an early interest in integrating nuclear power into operations. But, as more companies are using energy-intensive technologies, they will require vast amounts of energy to power their activities. Meanwhile, governments worldwide are putting increasing pressure on companies to decarbonise operations, with some introducing carbon taxes and others encouraging the use of clean energy sources through financial incentives. Renewable energy sources, such as wind and solar power, can take years to develop, and acquiring a stable clean energy source also means investment in battery technology. However, as the use of SMRs becomes more commonplace, their fast manufacturing time and small land footprint will likely appeal to companies looking for alternative clean energy sources.
Despite the optimism around SMR technology, a commercial rollout is likely still a long way off due to recent difficulties in acquiring the materials needed to develop these reactors. Many SMRs under production at present will run on uranium at enrichments as high as 15 to 19.75 percent, known as high-assay low-enriched uranium (HALEU). However, this is currently only commercially available from Russia, with which many governments and private companies have cut ties following the Russian invasion of Ukraine last year. Chris Levesque, the CEO of TerraPower, explained “It has become clear that domestic and allied HALEU manufacturing options will not reach commercial capacity in time to meet the proposed 2028 in-service date for the Natrium demonstration plant.”

There has been a rise in the popularity of SMR technology, thanks to its small size and relatively low-cost and fast manufacturing potential. While the commercial rollout of SMRs is still far off, it could provide the vast amounts of low-carbon energy required to meet the world’s growing electricity needs. And tech companies, such as Microsoft, will likely be some of the first to invest in SMR technology as they look to meet their rising computation needs while striving to decarbonise operations.

By Felicity Bradstock for Oilprice.com

[gfp927z]

>> nuclear sector <<

While these look near term overbought, I figure the nuclear sector may not be the best place to follow the usual TA signals too closely. The nukes had been so far out of favor for so long, if nuclear continues to come back in favor then we're still in the early innings. Plenty of landmines though, and I'm not that familiar with the sector, so only tiny positions.



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[wow_happens28]

URA made a 52 week intraday high.

https://stockcharts.com/h-sc/ui?s=URA&p=D&yr=1&mn=0&dy=0&id=p78831159970

[gfp927z]

That's an interesting article on thorium, thanks.

Btw, it's starting to look like this breakout could be the start of a longer term bull market for the nuke sector. Tough to say, but I decided to re-enter with the same 4 vehicles as before (URA, URNM, NLR, LEU). This time even smaller amounts, but I figure it's at least a token position, and will try to hold it for the longer term.




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[wow_happens28]

"thorium" Never heard of it.

Investing in thorium can be tough, as it’s not yet used for nuclear power generation. Companies like Flibe Energy, which is focused on thorium reactors, are still private.

https://www.energyandcapital.com/resources/thorium-investing/51975#:~:text=Investing%20in%20thorium%20can%20be,add%20to%20your%20portfolio...

Take a look at the word thorium.

What do you see?

Those familiar with Norse mythology or the Marvel comic books might notice the root of the word is Thor, the name of the god of thunder. Thor is known for his strength and power, wielding a hammer and controlling the lightning and thunder.

The name alone implies a superhuman power, a superior energy. And the element doesn't disappoint...

Thorium is a radioactive chemical element that can be found in soil and rocks. In its purest form, it appears as a silver metal, but when heated in the air, it becomes like a white light, like lightning.

Thorium is currently used in things such as light bulbs and camera lenses. It can create a high-quality refractive glass, and its high melting point can allow ceramics to resist high temperatures.

But light bulbs and ceramics aren’t what have the energy industry watching closely...

Heat resistance is.

You see, thorium’s ultra-high melting point can be useful in more than just ceramics. Heat resistance is something scientists and energy specialists alike have been trying desperately to achieve with nuclear energy.

One of the biggest issues with nuclear plants is the meltdowns that can occur if the uranium is not cooled properly. We saw that tragically exhibited in Japan in 2011, when an earthquake and tsunami caused a series of meltdowns at the Fukushima Daiichi plant. The fact that the only other disaster of that caliber was the 1986 Chernobyl disaster has done little to ease the minds of world governments and energy companies. This simply highlighted the tragedy that can come along with it.

Which is why thorium’s properties have become so coveted. If the material were virtually meltdown-proof, the clean energy possibilities would be endless.

There is only one problem: Thorium is unable to sustain a nuclear reaction on its own.

Thorium in Nuclear Energy
Thorium’s inability to sustain a nuclear chain reaction causes a problem, but it’s not one without a solution.

The material can actually prove quite effective when combined with a fissile material — one that is able to sustain a nuclear reaction.

These materials include uranium-233 (which is actually an isotope of thorium), enriched uranium (U-235), and plutonium (Pu-239).

The use of thorium in a nuclear reaction significantly lowers the waste produced; of the waste that does occur, radioactively decaying elements are lowered as well. Combined with weapons-grade uranium, for instance, one University of Oslo researcher found that thorium can aid in reducing radioactive waste by up to 95%.

And the safety of a thorium reactor compared to one using uranium is much higher. As mentioned before, thorium’s high melting point makes a nuclear meltdown much less likely.

But thorium can’t be used in just any nuclear reactor. Only seven types are safe for thorium reactions, including heavy water reactors, high-temperature gas-cooled reactors, boiling (light) water reactors, pressurized (light) water reactors, fast neutron reactors, molten salt reactors, and accelerator driven reactors. Molten salt reactors and accelerator driven reactors are still conceptual, though the other five have all been operational at some point.

The liquid-fluoride thorium reactor (LFTR), a type of molten salt reactor, is being touted by many as the best solution to thorium-powered nuclear energy. In these types of reactors, thorium and uranium fluorides are combined into a salt mixture that’s heated to a molten substance, which is then used to fuel the reactor.

These reactors have the potential to become self-sustainable, as they will be able to produce U-233 (the thorium isotope).

Flibe Energy, a company started by nuclear technologist and former NASA aerospace engineer Kirk Sorensen, is conducting research on LFTR technology with a view to eventually incorporate these reactors not just into electrical energy generation, but also into fields as vastly different as desalination, cancer treatment, and deep space exploration.

Creating the Nuclear Reaction
Still, the fissile material that enables a thorium reactions is actually fairly difficult to supply...

For years, the U.S. has had a steady stream of U-235 coming in, but that runs out this year.

Following the fall of the Soviet Union in 1991 and the Lisbon Protocol in 1992, the U.S. and Russia arrived at the U.S.-Russian Highly Enriched Uranium Agreement, or what came to be known as the “Megatons to Megawatts Program.”

Under the terms of the 1993 agreement, Russia would dismantle Soviet nuclear warheads and convert 500 tonnes of highly-enriched uranium to low-enriched uranium, which would be sold to the U.S. for use in nuclear reactors.

By 2013, ten years after the start of the program, all 500 tonnes would be converted. As a result, the U.S.’s steady supply of uranium came to a halt in 2013.

But for thorium, it might not be as bad as it seems. After all, U-235 isn’t the only fissile material that could be combined with thorium for a nuclear reaction...

U-233, an isotope of thorium, can react with thorium for a nuclear reaction. And this is the focus of the LFTRs, as it could lead to self-sufficiency of these reactors with the recycled waste.

It’s not easy. Thermal breeding, as the process is called, requires the reactor to produce more fissile material than it consumes, and it requires a highly specialized type of reactor.

Regular nuclear reactors are unable to breed to the point where it is unnecessary to add more of the fissile material. But many LFTRs are being designed as breeding reactors. While regularly adding thorium to these reactors would be necessary, adding U-233 would not. Enough fissile material would be created in the reactions to sustain it on its own.

Investing in Thorium
Investing in thorium can be tough, as it’s not yet used for nuclear power generation. Companies like Flibe Energy, which is focused on thorium reactors, are still private.

Uranium Mining Companies
Several uranium miners, like Cameco Corp. (NYSE: CCJ) and Unity Energy Corp. (UTY.V), are mining uranium in areas that also have concentrations of thorium.

Though neither company has reported on significant mining of thorium, both are well-positioned to profit should the demand for the metal skyrocket.

As thorium reactor testing continues in nations like Norway and India, and major investors like Bill Gates (whose company TerraPower has also begun testing thorium reactors) get involved, attention to the metal will only grow...

Research on these reactors will lead to implementation, and that will lead to profits for the well-positioned investor.

Thorium is the key nuclear fuel of the future. Keep a close eye on this one.

[gfp927z]

Full article - >>> Uranium Investors Bet Big On Nuclear Renaissance


OilPrice.com

By Alex Kimani

Sep 24, 2023


https://oilprice.com/Alternative-Energy/Nuclear-Power/Uranium-Investors-Bet-Big-On-Nuclear-Renaissance.html


Dozens of governments and influential bodies that were formerly opposed to nuclear energy are now openly embracing and hailing it as a necessary player in the global electrification and decarbonization drive.

Uranium markets have lately been on a roll after prices for yellowcake gained more than 20% YTD.

Global uranium production dropped by 25% from 2016 to 2020 amid low prices before recovering slightly to 49,355 metric tons last year.

Uranium and the nuclear energy sector are enjoying a renaissance. There has been a palpable shift in support for nuclear power amid the transition to low-carbon fuels as well as a renewed push to enhance energy security after the global energy crisis triggered by Russia’s war in Ukraine.

Dozens of governments and influential bodies that were formerly opposed to nuclear energy are now openly embracing and hailing it as a necessary player in the global electrification and decarbonization drive. And few have been as monumental as Finland's Green Party which voted overwhelmingly in 2022 to categorize nuclear power as a form of sustainable energy after decades of strong opposition. A third of Finland's electricity is generated by nuclear power.

“I am very happy and proud. This is a historical moment in the history of the green movement, as we are the first green party in the world to officially let go of anti-nuclearism.” said Tea Törmänen, a voting member and chair of the Savonia/Karelia chapter of Viite, the pro-science internal group of the party, shortly after the vote.

Other European nations quickly followed suit with Belgium, Spain and Sweden supporting nuclear energy.

Not surprisingly, uranium markets have lately been on a roll after prices for yellowcake gained more than 20% YTD, better than any other metal and topping $65/lb for the first time in 12 years.

Uranium-based investment vehicles and ETFs have performed even better than the metal they track: Global X Uranium ETF (URA) is up 29.2% in the year-to-date; Horizons Global Uranium Index ETF (HURA.TO) has returned 40.3% while VanEck Uranium+Nuclear Energy ETF (NLR) has gained 28.5%. Uranium miners have not disappointed either: Cameco Corp. (NYSE:CCJ)+75.2%, Uranium Energy Corp. (NYSE:UEC)+40.1% and Consolidated Uranium Inc. (OTCQX:CURUF)+30.7%.

Uranium Shortage Bites

But the biggest bullish catalyst yet for uranium bulls has been supply deficits at a time when demand is surging. Global uranium production dropped by 25% from 2016 to 2020 amid low prices before recovering slightly to 49,355 metric tons last year.

The coup in Mali, which produces ~4% of the world's total, and Cameco's falling production due to difficulties at its Cigar Lake mine and Key Lake mill in Canada have also constrained supply. Global supplies remain constrained mainly due to years of under-investment in new production, monopoly of state-owned entities, transportation risks and geopolitical uncertainties.

Meanwhile, in its latest biennial report, the World Nuclear Association has predicted that demand for uranium used in nuclear reactors will surge 28% by 2030 and nearly double by 2040 as governments ramp up nuclear power capacity in a bid to meet zero-carbon targets.

Sachem Cove Chief Investment Officer Michael Alkin has told The Wall Street Journal that the uranium market remains “very tight’’ and prices are likely to move even higher heading into 2024. Alkins says he expects utilities to start ramping up talks for uranium conversion and enrichment through private negotiations during the fall or requests for proposals.

Cameco says the dual agendas of clean energy and energy security have so failed to translate into a stronger primary supply pipeline. According to the uranium miner, the uranium market is still in the "relatively early stages of the cycle as uncovered uranium requirements by utilities remains elevated," and only "sustained long-term uranium demand will ultimately drive the company's future production plans."

Cost and Policy Risk

Like all investment theses, uranium bulls will have to contend with some key risks. First off, over the decades, the nuclear sector has become notorious for huge cost overruns by uranium projects. Unfortunately, project managers, financial planners and financiers do not appear to be any closer to solving this conundrum in this age of AI.

Not only has the cost of building new nuclear plants sky-rocketed in recent years but plants currently under construction are massively exceeding cost estimates. A large 3,200 megawatt (MW) plant planned to be built in southwest England by France's EDF , the world's largest nuclear operator, is now estimated to cost ~$40 billion, or 30% higher than the initial estimate. Smaller projects are not immune to this problem either. NuScale Power’s 462-MW plant under construction has seen cost estimates increase from $58 per megawatt hour in 2021 to $89/MWh in 2023, a more than 50% jump in the space of just two years.

Second, another major nuclear accident like Three Mile Island or Fukushima might rapidly sour the public sentiment and even force a policy shift. A major thorium breakthrough might spell doom for the uranium sector since thorium reactors do not carry the same risk of a catastrophic meltdown inherent in nuclear reactors powered by uranium.

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