Ann: Annual Report 2018, page-12

Hi Guys,

Sorry .. hogging the posts again, but these three pieces that I read overnight provide some weight to the bull argument I discussed above:

Licence Extensions vs. Retirement

Existing reactors are getting licence extensions instead of being retired. This, IMO, is going to become increasingly the norm for two reasons:

(a) It is cheaper for utilities to undertake required work to keep reactors safe and operational vs. decommissioning them.

(b) Nuclear provides a strategic component to the grid and, likewise, running older nuclear reactors after 'refurbishment' is a better IRR proposition vs. building a brand new Nat Gas plant and presents diversity, clean base load and the ability for nations who are 'energy poor' to achieve energy security which is becoming geo-politically more important.


Source: http://bellona.org/news/nuclear-iss...power-plants-oldest-reactor-to-run-until-2033


Nuclear is strategic for the USA


As many know, the Federal Government is considering the future of the uranium and nuclear sectors within the USA currently, under various agencies including the S232 petition.

For those familiar with Ben Hunt's writing this article from The Hill is insightful. The Ben Hunt question is "Why is this article appearing now?"

My answer is that it is preparing the groundwork for a positive policy outcome to support uranium/ nuclear sectors:



Source: http://thehill.com/opinion/energy-e...er-too-strategic-to-fail#.W4hz5iSu4UM.twitter


New technology


Technology is fast developing SNR's (small nuclear reactors) to the point that they can be deployed commercially.

The advantage of these reactors is that they are safer (smaller) and are cheaper to produce relative to the electricity generated by their much larger encumbants. They are also modular and mobile.

This provides the scope for deployment in remote locations (e.g. small rural centres, islands, wilderness communities) that had previously relied on fossil fuel plants.

The development of SNR's increases the range of potential end users/ locations by a multiple thereof the current range of potential end users.

We have also seen recently new regulations that are taking these SNR's into account whereby safety zones around nuclear reactors are being reduced in size for SNR designs.



Source: http://www.boisestatepublicradio.or...me-changer-nuclear-energy-generation#stream/0


I'm fully aware that there is also a bear case for this sector, but I just wanted to chip away at these three bricks in the "wall of worry" that investors are experiencing re U investing.

Cheers
John