Titan Opportunities is now invested in uranium, the mission-critical feedstock for nuclear power generation. We've expressed this thesis by investing in two leading uranium mining stocks: NexGen Energy (NXE) and Denison Mines (DNN)
We're incredibly bullish on nuclear power - and its primary feedstock, uranium - as a multi-year secular trend for three primary reasons:
1) Robust Global Demand: Nuclear has a meaningful place in the world's energy mix given it is the only carbon-free, cheap, consistent source of baseload power generation available today. We expect nuclear demand to steadily grow at 2-3% per year between 2021-2030. Uranium is a critical input to fulfilling this nuclear demand.
2) Accelerating Structural Supply Deficit: The uranium industry is reaching a critical inflection point. As production cuts from the largest uranium suppliers converge with a wave of long-term contract renewals by U.S. utilities, we believe this historic supply/demand imbalance should catalyze a rebound in uranium prices towards levels similar to those seen during prior cycles.
3) Highly Attractive Value Proposition: We have strong conviction that equity prices of select, high-quality uranium companies such as NexGen Energy and Denison Mines could increase 2x or even 3x over the next 3-5 years with limited downside risk and a relatively uncorrelated volatility profile.
You can learn more about our investment thesis by reading the full memo above and watching this quick video from our investment team.