Saturday, November 28, 2015
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Japan Restarts Second Nuclear Reactor


(CNN) — Japan has restarted its second nuclear reactor since the Fukushima disaster in 2011 shut down the country’s nuclear energy program.

The Kyushu Electric Power Company told CNN that it restarted the Dai-ni reactor at Sendai Nuclear Power Plant Thursday morning as planned and the reactor is scheduled to be fully operational and producing power by October 21.

The move comes despite widespread opposition to the use of nuclear energy in Japan.

Japan today restarted the second nuclear power plant since the crisis in 2011. Abe’s push continues; albeit severely constrained by the blind opposition of dumb animals that make up environmentalist ranks.

Abe understands that Japan needs these reactors up and running. It’s not a matter of wanting; they have to have the long term sustained power generation of a nuclear fleet or China will suffocate their civilization through superior positioning and blockades. The US is growing weak and Japan can’t count on us anymore – the wavering of the Obama Administration has made that much clear to our allies. Japan can’t gamble its future on one segment of the US political class not retaining power.

His goal is to get 20-22% of Japans power supply from nuclear again. And he’ll have it too. The restarts have been opposed so the restart timeline has basically doubled…but it proceeds ahead nonetheless.

Nuclear power will eventually catch a big rebound. Even in the US, where panicking over little is something of a past time, opposition to nuclear power never quite took off the way anti-nuclear activists would have hoped; considering how the Fukushima crisis was the second worst disaster since Chernobyl.

At least one bright side of the Climate Change movement is that they are too wedded to an inexplicable fear of entropy to worry about last century’s boogey man anymore.

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The Recovery On Nobody’s Radar

Yesterday I received reports that uranium U308 spot prices stood at $39.25 per pound as of March 2, 2015. This is a ferocious recovery from the lows of $28.00 in the middle of last year; a rally of 40%.

We are still at least another 50% short of where uranium spot was trading when the Fukushima reactor melted down. Still, this price recovery is constructive.

The recovery in uranium miners has taken longer than I expected. Certainly I was aware that this might happen, but I took early positioning because I figured there were better odds of the market pricing in a recovery early on. Instead, fearing the “Chernobyl Syndrome”, the market curled up into a fetal position and didn’t move for four years.

I remain long CCJ and, despite being very disappointed with the short sighted antics of their upper management, am willing to continue holding out for gains. CCJ’s operations continue to perform beyond reasonable expectations, all things considered.

After CCJ hits $30, I will donate a portion of the proceeds to the Canadian tax agency to offset the cost of chaining their Board of Directors and tossing them into a pit of despair.

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Uranium Spot Prices Continue To Soar

Approximate prices for the uranium spot market lifted another 5% from last week. We’re now well back into the $40’s.

This is what I have been waiting for, for years now. CCJ is still one of my larger holdings, and there is still time left in the year to have it be a big hit. But even if it doesn’t work out before 2014 comes to a close, 2015 will work fine too.

Japan set off the stampede. It ends gloriously.

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Up For The Week, Somehow

The market may be down, but somehow I ended up a small sum. My account is up 3% today, erasing the nasty tumble I had play out over the past 48 hours.

I’m constructive in oil and energy names, but that applies more to energy services and complement plays than it does to pure oil bets. I’m also very adverse to deep sea drilling, because it’s expensive and easily priced out of competitiveness.

I’m getting excited about uranium for the first time in years. I’ve been enthusiastic up until now, but there was something missing. The fuel run is exactly what the doctor ordered.

Enjoy your weekend, my good man or lady. The 9th floor is closed for business, until Monday.

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Huge Move In Uranium Prices

Uranium spot price is now back above $40. Price for uranium fuel has not been this high in years.

No joke, the recovery is now.

Long CCJ.

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Uranium Prices May Have Finally Bottomed

I know, I’m sorry for the tap out title on this piece. It is spineless and cowardly. But I’ve gotten my hopes up enough times now, just to watch uranium prices breach new lows, that I will not tag along again.

It does appear, based on the very thinly traded reporting I have access to, that pricing for uranium fuel has increased dramatically in the past few weeks from around $28 per pound, to around $32 per pound.

This is of course nowhere near the $50 level it was at just a few short years ago. However, steps are to be taken incrementally. I want to see this hold up, then wait and see some more.

CCJ remains my only uranium play; I made a short trade in UEC for a wash earlier this year and decided the time was not right for the small miners.

My earliest prediction following the Fukushima Daiichi meltdown was that, if a V shape recovery could not quickly follow the price deflation, then at or around the three year anniversary would mark the recovery in nuclear fuel investments.

So far this year, those hopes have not been met. But there is still time; a few months later is not much off, and I could live with a year or two even…provided the rewards are rich enough.

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