The world is on the brink of a nuclear revolution. The US, U.K., the Netherlands, Belgium, Spain, China, India, UAE, Poland and many more countries are aiming to build Small Modular Nuclear Reactors. (SMR’s).
In the U.K., Rolls-Royce is seeking a location for a factory to make a fleet of small modular nuclear reactors and in the US, Bill Gates TerraPower is making the most disruptive technology we have encountered in this generation with SMR’s.
Just recently at the G7 Leaders’ Summit in Schloss Elmau, President Biden laid out the Administration’s effort to execute the Partnership for Global Infrastructure and Investment (PGII) . As a key demonstration of this commitment, President Biden announced another milestone in the United States’ support for clean energy innovation as part of global efforts to combat climate change. The United States is committing for the deployment of a small modular reactor (SMR) power plant in Romania.
Special Presidential Envoy for Climate John Kerry said: “Nuclear energy, including small modular reactors, represent a critical tool in the fight against climate change, and can also enhance energy security and boost economic prosperity. This is a strong step forward in support of Romania’s desire to deploy innovative, safe, and zero-emissions nuclear energy in partnership with the United States.”
The U.S. technology for small modular reactors has been approved and is en-route to be implemented on an industrial scale, with the first projects being built out now. Like we said earlier, Rolls Royce and Bill Gates Terra Power have already begun building small nuclear reactors.
This is the next generations way to use nuclear. This is the gap of the nuclear sector and its new technology that most people are unaware of.
Today there are about 440 nuclear power reactors operating in 32 countries plus Taiwan, with a combined capacity of about 390 GWe. In 2020 these provided 2553 TWh, about 10% of the world's electricity.
About 55 power reactors are currently being constructed in 19 countries, notably China, India, Russia and the United Arab Emirates.
Before we go much further, take note of this company, Traction Uranium Corp. (OTC:TRCTF, CSE:TRAC) and we will discuss it in more detail shortly.
Green hydrogen will depend on SMRs to be produced in a cost efficient and reliable way.
Just like battery-electric vehicles, hydrogen fuel cell electric vehicles (FCEVs), including passenger cars and buses, are powered by electricity and so produce no carbon dioxide (CO2) or other harmful emissions from their tailpipe – only water vapor. In these vehicles, energy is stored in the form of compressed hydrogen fuel.
The largest energy companies in the world are investing billions in creating hydrogen production plants powered by small module reactors which require uranium as the fuel. Countries like Germany are extremely bullish when it comes to green hydrogen in order to meet their net zero carbon emissions.
Hydrogen produced via electrolysis, by splitting water into oxygen and hydrogen, using electricity from renewable sources is called green or decarbonised hydrogen.
Hydrogen called blue is produced from natural gas and other non-renewable resources.
Most countries and specifically Germany only believe in using green hydrogen as using blue contradicts the entire process of getting away from fossil fuels.
This is again where SMR’s are used. SMRs are integral to the green hydrogen revolution. It will be impossible to generate all the worlds power needs just from wind and solar. SMRs are crucial in producing green hydrogen.
SMRs are the safest clean energy source in the world.
First, SMRs can't melt down.
Second, the United States Nuclear Regulatory Commission just agreed that any emergencies that could possibly occur at a small modular nuclear power plant probably won't even get past the fence.
This is ground breaking and we believe that this technology will take the world over and it is all powered by uranium.
Countries will import green hydrogen via ocean tankers to their ports, via road by cryogenic liquid tanker trucks or gaseous tube trailers or via pipelines for regions with substantial demand.
In addition to stable base load power, SMRs will be able to provide energy for the net zero manufacturing of green hydrogen to support the decarbonisation of transport.
Take a look at the Rolls Royce SMR video below which explains how SMRs work, then continue reading.
The clean energy revolution will be led by uranium as it will power green hydrogen plants, desalination plants, EV’s and the list goes on and on.
Green Hydrogen plants are not the only plants that will require the power of SMRs.
SMRs are an attractive energy source for large scale water desalination since the thermal energy produced in SMRs can provide both electricity and steam to desalt water without the production of greenhouse gases.
This allows regions with smaller electrical grids and limited infrastructure to add new electrical and water capacity in more appropriate increments and allows countries to consider siting plants at a broader range of distributed locations.
Many countries are undergoing massive heat waves and running out of water. SMRs will be the solution to provide the energy to cool their homes and desalinate the necessary water to nourish their crops and provide clean drinking water. SMRs are the only solution to power local districts that need clean water from desalination in order to avoid a doomsday food and water shortage.
Additionally, uranium is being used in small reactors in applications that you would never dream of. It is being developed for a plane that acts as a hotel that never has to land. Below is just one example we wanted to bring to you but there are many more.
See below video
The clean energy revolution will be led by uranium as it will power green hydrogen plants, desalination plants, EV’s and the list goes on and on.
Just recently, The Biden administration released a statement that it is seeking $4.3b in funds to purchase uranium to develop the US uranium industry along with its Canadian neighbors who have vast uranium rich lands in the Athabasca Basin.
US Senator John Barrasso who represents Wyoming stated he believes that America and its Canadian neighbors which export 22% of America's Uranium supply will benefit immensely from a revitalization in North American uranium mining.
We are expecting uranium mining companies based in Canada and the US to enter a hyper growth phase due to the increased demand for uranium from the United States, which is single-handedly responsible for a staggering 25% of the world's consumption of uranium. This is why we want you to take a look at Traction Uranium (OTC: TRCTF, CSE:TRAC)
For the first time in 48 years, both Democrats and Republicans parties agree that Uranium is critical to US energy security.
Elon Musk, in an interview in Germany, stated that “electricity demand will likely double over the next two decades as a result of the update of electric vehicles.” This does not consider increased demand that may result from other sources such as increased population, and growing reliance on digital services, etc.
Mr. Musk went on to note that sourcing the energy necessary to power EVs has the potential to become the biggest obstacle over the next two decades.
“We should build more nuclear power plants..."
-Elon Musk
We at The Financial Star are always looking for opportunities during certain resource cycles and with a uranium bull market we found Traction Uranium has the potential to be a serious force to be reckoned with.
Traction Uranium (OTC: TRCTF, CSE:TRAC) has entered into two option agreements located in Saskatchewan's Athabasca basin region: The Hearty Bay project, comprising six mineral claims covering approximately 10,604 hectares, and the Lazy Edward project, comprising 11 mineral claims covering approximately 1,828 hectares.
In our view, Traction Uranium is poised for explosive growth. The company is positioned in the perfect sector at the perfect time.
With the stock market, timing is everything and must be acted upon when the opportunity presents itself. With the recent downturn in the market, this makes for great entry points for stocks and will limit downside exposure. Current prices for most stocks have hit their lows and we believe that this is the time to buy stocks that have a bright future in burgeoning sectors.
Generation IV nuclear reactors are being developed through an international cooperation of 14 countries—including the United States.
The U.S. Department of Energy and its national labs are supporting research and development on a wide range of new advanced reactor technologies that could be a game-changer for the nuclear industry. These innovative systems are expected to be cleaner, safer and more efficient than previous generations.
Many investors have no idea on the breakthroughs and technological developments happening in the small nuclear reactor sector that relies on uranium as its core material. We want to summarize 3 of them below.
TerraPower, the Bill Gates-backed nuclear innovation firm, has launched a new small modular reactor system paired with a molten salt storage unit.
The new concept, dubbed Natrium, is being developed in partnership with GE Hitachi Nuclear Energy. According to the pair, it could be used to boost a 345-megawatt small modular reactor (SMR) to around 500 megawatts for a period of up to five hours.
MSRs have a closed fuel cycle that can be tailored for the efficient burn up of plutonium and minor actinides.
Molten salt reactors (MSR) use molten fluoride or chloride salts as a coolant. The coolant can flow over solid fuel like other reactors or fissile materials can be dissolved directly into the primary coolant so that the fission directly heats the salt.
MSRs are designed to use less fuel and produce shorter-lived radioactive waste than other reactor types. They have the potential to significantly change the safety posture and economics of nuclear energy production by processing fuel online, removing waste products and adding fresh fuel without lengthy refueling outages.
Their operation can be tailored for the efficient burn up of plutonium and minor actinides, which could allow MSRs to consume waste from other reactors.
The site for TerraPower’s SMRs are in Wyoming, USA. This is strategically placed in our opinion directly below Saskatchewan's Athabasca Basin which is the home of Traction Uranium. Just like the electric vehicle revolution cannot happen without Lithium, the nuclear revolution cannot happen without Uranium, and smart investors are taking action.
SFRs are designed for management of high-level waste and, in particular, management of plutonium and other actinides.
The sodium-cooled fast reactor (SFR) uses liquid metal (sodium) as a coolant instead of water that is typically used in U.S. commercial power plants. This allows for the coolant to operate at higher temperatures and lower pressures than current reactors—improving the efficiency and safety of the system.
The SFR also uses a fast neutron spectrum, meaning that neutrons can cause fission without having to be slowed down first as they are in current reactors. This could allow SFRs to use both fissile material and spent fuel from current reactors to produce electricity.
VHTRs offer a broad range of process heat applications and an option for high efficiency electricity production.
The very high temperature reactor is cooled by flowing gas and is designed to operate at high temperatures that can produce electricity extremely efficiently. The high temperature gas could also be used in energy-intensive processes that currently rely on fossil fuels, such as hydrogen production, desalination, district heating, petroleum refining, and ammonia production. Very high temperature reactors offer impressive safety features and can be easy to construct and affordable to maintain.
The image below shows the dramatic difference between old reactors and SMR's. SMR's are poised to get even smaller than the image below.
In addition to the above SMR’s. Large scale projects are also in development around the world. “General Fusion” backed by Amazon's Jeff Bezos is set to build a large-scale nuclear fusion plant in Oxfordshire, UK.
Canada's General Fusion is one of the leading private firms aiming to turn the promise of fusion into a commercially viable energy source. The list goes on and on and there are too many to mention but for investors, uranium is a sector that will have explosive growth.
Whether you agree with nuclear or not, it is undeniable that it is presenting an opportunity for investors to profit from it. Canadian companies like General Fusion and Traction Uranium in our opinion will be the leaders in the sector.
Traction Uranium is publicly traded unlike General Fusion and TerraPower; investors should put Traction Uranium (OTC: TRCTF, CSE:TRAC) on their radars.
If you invest in Traction you are investing in the future production one of the world’s largest sources of uranium in one of the most stable G7 member countries.
It is also worth mentioning that the biggest name in Uranium, Eric Sprott who operates “Uranium Physical Trust” took a lead investment into Traction Uranium. Eric Sprott is a Canadian Billionaire who holds approx. $2.6 billion worth of uranium within the trust. The trust holds physical uranium and if they have taken a lead investment in Traction Uranium, it alludes to the fact they must believe that uranium will be discovered and extracted from Tractions projects.
This is a major vote of confidence for Traction as Sprott is a very educated uranium investor and does deep research before making such an investment. With this vote of confidence from Sprott, it makes The Financial Star very bullish on Traction Uranium.
Traction Uranium, in our opinion, could be a winner because of Canada's close ties with the countries that require uranium.
Without nuclear, the world might need to prepare for apocalyptic blackouts…
And no, wind and solar energy will not be enough to get to net-zero emissions. Or to provide reliable electricity. We think the people who say so are wrong.
The only way to “clean up” the energy sector and meet soaring electricity demand will be through nuclear power.
Here’s why.
Put simply, you can’t produce electricity from either wind or solar 24/7.
Solar becomes useless at night or even on a cloudy day.
Wind doesn’t blow around the clock, either.
But the demand for electricity doesn’t go away. On the opposite, it’s rising like crazy.
And the 2021 numbers are alarming…
Electricity demand rose 6%, or by the highest amount since 2010…
But carbon dioxide emissions did, too.
Why? Because there isn’t enough renewable capacity to fuel this surge in demand.
So, the world turns to oil and coal to fill the gap.
This is a shame… and an opportunity, now well-understood by the government and the market alike, to push for nuclear power.
And in doing so create a potential opportunity for players like Traction Uranium Corp. (OTC:TRCTF, CSE:TRAC).
The situation is so bad it could end up in social disturbance…
And we’re not being dramatic here.
This gross mismanagement of energy prices could become “a driver of social and political tensions,” says the Energy Information Administration.
And when we mean social disturbance, we mean potential violence and looting.
Believe it or not, access to electricity can prevent major social crises.
Consider the 2019 New Orleans blackout… when it happened, officials imposed a curfew. And several incidents of looting were recorded. A special “anti-looting” police unit was created to fight it.
The massive power outages seen in California in 2021 are a sign of what can happen when the grid is strained and there’s not enough power to distribute to millions of people.
As states like California move away from fossil fuels and toward sustainable energy sources, they forget one simple thing… which we mentioned above.
Wind and solar aren’t enough.
And uranium stocks like Traction Uranium Corp. (OTC:TRCTF, CSE:TRAC) are in our view poised to benefit from this impending demand for nuclear power.
It is importing more power than any other state. And turning a blind eye on its insanely inadequate power supply.
On top of this, solar and wind power generators stopped working just as everybody needed them the most.
If local governments follow the recommendation of a recent joint MIT-Stanford study regarding uranium and the Diablo Canyon Nuclear plant, the demand for uranium could surge. And it could potentially lift the whole uranium sector, including Traction Uranium Corp. (OTC:TRCTF, CSE:TRAC).
Texas has the same problem as California. In February 2021, following a series of storms, its grid was under stress for over two weeks. It caused about $200 billion in damage and hundreds of lost lives.
The state couldn’t import enough electricity to meet its needs. Because of high demand and low supply, prices soared. Some customers ended up paying $5,000 for five days’ worth of power supply.
And why we are bullish on uranium and Traction Uranium Corp. (OTC:TRCTF, CSE:TRAC) in particular. Nuclear is more stable than other sources of power. It is clean.
And, critically, it is said to be safe and sustainable.
There may be no other solution to the looming energy crisis.
Please take a look at the video below and the potential of one of the worlds largest nuclear power plants and how nuclear is poised to change the world.
The Athabasca region of Canada is sometimes called “the Saudi Arabia of uranium” for a reason.
Much like its Middle Eastern counterpart with its plentiful and high-margin oil reserves, Athabasca hosts multiple and high-grade uranium deposits.
Mostly because of Athabasca, Canada is the world’s second-largest producer of uranium, and the world’s third-richest when it comes to uranium reserves.
Within Canada, Athabasca is said to be the number one uranium area.
The sheer number of Athabasca deposits, and their excellent economics are the two reasons why Athabasca sometimes gets compared to Saudi Arabia.
Consider this…
Almost one-sixth of the world’s uranium production comes from Athabasca.
That’s how big it is in terms of quantity.
But the quality of the output is also said to be unmatched… it probably has the best economics in the world. And here’s proof… Ten out of the top fifteen highest-grade uranium projects are located here. And they are said to have about 20 times the world’s average purity.
Because of the location of the properties (we have a map below), the fact that they are a part of what some call the “Saudi Arabia of uranium” region, and because the people in charge look to have excellent business and technical acumen… The Financial Star is bullish on Traction Uranium Corp. (OTC:TRCTF, CSE:TRAC).
The company’s ongoing explorations could become a series of value-adding events.
We discussed earlier in this article that timing is crucial when investing in certain stocks. Buying at the right time and selling at the right time is crucial.
We believe that the news on June 29, 2022 released by Traction Uranium is a signal that the company may be close to a uranium discovery. They state,
“TRACTION URANIUM INTERSECTED ANOMALOUS RADIATION IN 7 OUT OF 10 DIAMOND DRILL HOLES AND COMPLETES LAZY EDWARD SUMMER DRILL PROGRAM"
- Traction Uranium Corp.
In addition to this news release Traction also announced on July 6th that
“TRACTION URANIUM EXECUTES SERVICE AGREEMENT WITH UNIVERSITY OF SASKATCHEWAN RESEARCH TEAM TO UTILIZE INNOVATIVE URANIUM VECTORING TECHNIQUE USING RADIATION-INDUCED DEFECTS IN QUARTZ"
- Traction Uranium Corp.
These two above news releases give us confidence that the company is a top tier exploration company and if a discovery were to be made on this property that early investors will potentially realize significant returns.
Here is a map showing the company’s two projects, Hearty Bay and Lazy Edward Bay.
We think there could be an edge to the company’s understanding of the projects.
We think so because members of the optionor’s technical team were involved in some of the biggest discoveries in the Athabasca region.
As far as expertise goes, in our opinion these people are top-notch.
Like Dev Randhawa, an industry veteran who was named The Northern Miner’s Mining Person of the Year.
And the company’s management is aiming to build Traction Uranium Corp. (OTC:TRCTF, CSE:TRAC) into a major player in what some call the “Saudi Arabia of uranium.”
The optionor’s team which worked on Hearty Bay and Lazy Edward is unique. Here’s proof…
It’s the only team that made two significant uranium discoveries in the region.
No other team managed to do the same.
Take the Triple R deposit…
At the time of its discovery, it was the largest undeveloped high-grade deposit in the Athabasca region.
But the size and the grade weren’t the only highlights of Triple R…
Economics worked remarkably well, too. After the company finished a preliminary economic assessment (or PEA) on Triple R, it became clear that the project had the potential to become one of the lowest-cost sources of uranium in the world.
…and a billion-dollar net present value or NPV.
Waterbury was another discovery that the optionor’s team which worked on Traction’s projects made.
It is now owned by Denison mines and is reported to have great economics with a low-cost profile and a $177-million NPV.
In the past, the optionor of Traction Uranium’s projects managed to unlock value up to 58 times higher than its original value pre-discovery value.
Everybody is on board that nuclear energy is part of the future, and uranium is poised to play a key role in the global “net-zero” transition. This is why we are so bullish on Traction Uranium Corp. (OTC:TRCTF, CSE:TRAC).
Not only does the company have investment from one of the most prominent industry investors… and access to what we think is a uniquely qualified technical team…
It is also located in what some call the “Saudi Arabia of uranium,” Athabasca, which is also one of the most mining-friendly places in the world. And the optionor’s team which worked on the company’s projects has experience unlocking significant value.
Will they succeed again? In our opinion, Traction Uranium Corp. (OTC:TRCTF, CSE:TRAC) has all it takes to stand out and achieve exploration success.
Thank you for your loyal readership,
The Financial Star team
DISCLAIMERS
FORWARD-LOOKING STATEMENTS: This news release contains certain forward-looking statements within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, are forward-looking statements. Forward-looking statements in this material include that both of the main political parties in the United States government, and governments in other countries, will support uranium resources as an energy source of the future; that investment leaders and the investment community generally will be supportive of uranium resources as an energy source of the future; that uranium resources will be utilized as an energy source in the future and that the price for uranium will increase in value in future as currently expected due to global demand and political reasons; that Traction Uranium can fulfill all its obligations under its option agreements; that Traction Uranium’s properties will achieve drilling and mining success for uranium; that historical geological information, estimations and modeling in respect of the properties will prove to be accurate or at least very indicative that high-grade uranium targets exist; that Traction Uranium will be able to carry out its business plans, including future exploration and drilling programs; that the geological models established by the optionor will be confirmed as exploration of the properties continues; that Traction Uranium’s exploration results will gain the attention and interest of other companies and investors; that Traction Uranium’s exploration results will show promising results justifying ongoing exploration and possible development efforts. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include that politics don’t have nearly the strong effect on uranium prices as expected; that demand for uranium may not increase and that uranium may not be accepted or utilized as an energy resource in the future for various reasons; that the uranium sector may not gain the anticipated support of governments and investors; that the Company may not complete its obligations under the option agreements for various reasons or otherwise earn its options in respect of the properties; that the Company may not be able to finance its intended drilling and exploration programs; Traction Uranium may not raise sufficient funds to carry out its business plans; that geological interpretations and technological results based on current data and modeling of the properties may change with explorations and more detailed information or testing; that the results from Traction Uranium’s proposed exploration programs may not support evidence of uranium deposits; that the preliminary drilling results, if any, may not confirm further exploration efforts are warranted; that Traction Uranium may fail to gain the attention and interest of other companies and investors; that Traction Uranium’s exploration efforts may fail to justify any ongoing exploration and/or development efforts; and even despite any possible promising results from drilling and exploration, there may be no commercially viable uranium or minerals on Traction Uranium’s properties. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
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