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Aussie Uranium Stocks Soar After Australia Decides It Wants Nuclear Industry To Go With New Nuclear Subs

Aussie Uranium Stocks Soar After Australia Decides It Wants Nuclear Industry To Go With New Nuclear Subs

Following last night "historic" AUKUS deal, which officially pitted US and UK with Australia against China, in the process supplying…

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Aussie Uranium Stocks Soar After Australia Decides It Wants Nuclear Industry To Go With New Nuclear Subs

Following last night "historic" AUKUS deal, which officially pitted US and UK with Australia against China, in the process supplying the aussies with nuclear-powered subs (while enraging the French whose $50 billion contract to build diesel-electric submarines was scrapped as a result), Australia has a revelation: the deal would see Australia become the only country in the world with nuclear-powered submarines to not have its own domestic nuclear industry. This in turn immediately led to further calls to reverse a longstanding ban on developing local uranium resources.

“Getting nuclear subs makes sense for our national defense,” said Queensland Nationals Senator Matt Canavan, who has been leading a push in parliament to develop Australia’s nuclear industry. “But no country in the world has nuclear subs without having nuclear power,” he said.

“I thought before the subs deal we should have nuclear power — it makes even more sense now.”

As Australia's Daily Telegraph poignantly observes, France, which was previously to supply Australia with diesel subs assembled in Adelaide, has its own fleet of 10 nuclear attack and nuclear ballistic missile submarines, and derives more than 70% of its domestic energy needs from nuclear power. Of course, Russia and the US both have large nuclear-powered naval fleets, and derive about 20% of their respective domestic electricity from nuclear.

China, meanwhile, is continuing to develop its own nuclear-powered and nuclear-armed navy but only relies on atomic energy for 5% cent of its power, thanks to its lax environmental standards and reliance on coal-fired power.

As a result, local mining industry figures, said that this was the perfect time to reignite the discussion about nuclear.

“This is a perfect opportunity to update our approach to nuclear energy by removing the cold-war era ban on uranium mining in NSW. It’s a real chance to develop a new industry here in NSW that could provide local uranium to meet our domestic energy and national security needs,” NSW Mining CEO Stephen Galilee said.

Galilee’s thoughts were echoed by the Minerals Council of Australia’s Tania Constable, who said of the deal, “This is an incredible opportunity for Australia’s economy — not only will we develop the skills and infrastructure to support this naval technology, but it connects us to the growing global nuclear power industry and its supply chains.

But, she added, “Outdated regulations at the federal and state levels that prohibit nuclear power — and in some cases exploration and mining of uranium — contribute to Australia being unable to properly even consider, let alone develop, this important industry.”

Opposition Leader Anthony Albanese, however, kiboshed any thought of leveraging a domestic nuclear industry off the deal, saying that a condition for the ALP’s support was that “there be no requirement of a domestic civil nuclear industry”.

His objection, however, fell on deaf ears and overnight Australia's uranium stocks soared on hopes that Australia was indeed set to finally enter the nuclear era. As a result Deep Yellow jumped as much as 10%, Paladin Energy soared as much as 9.3%, Defense contractor Austal shares climbs as much as 7.4%; the most since March and Peninsula Energy jumped at much as 17%.

Meanwhile, back in the US uranium stocks have continued their ascent as more investors focus on Sprott's attempt to go "Hunt Brothers" on uranium with his Sprott Physical Uranium Trust  which has been on a buying spree, bolstering its stockpile by 45% in four weeks after snapping up 8.1 million pounds of the commodity while prices soared. Uranium has surged 40% this month, putting pressure on utility owners and other users when supplies are dwindling and demand is set to take off thanks to more reactors being built around the world.

Discussing its strategy with Bloomberg, the Canadian firm behind the world’s only physical uranium fund said it wasn't solely responsible for the move, but that hedge funds and family offices are driving up demand for the radioactive metal used to fuel nuclear reactors.

“I don’t think we’re crowding them out,” said John Ciampaglia, chief executive officer of Sprott Asset Management, which oversees the trust. “You’ve got end users that are trying to buy materials, you’ve got speculators and financial intermediaries in the market as well.”

Investment demand from non-utility buyers such as hedge funds and family offices has been strong this year, even before Sprott’s asset-management unit launched its trust on July 19, according to Ciampaglia. A few uranium development companies bought the physical commodity after raising equity in the capital markets rather than parking the proceeds into cash, he said.

Still, according to the latest data, Sprott’s trust holds about 26 million pounds of uranium, equal to about 14% of the annual consumption from the world’s nuclear reactors. The closed-end fund was formed out of an April takeover of Uranium Participation Corp., which held 18 million pounds of uranium, and its trust units trade on the Toronto Stock Exchange. The fund invests and holds substantially all of its assets in uranium, which is stored in highly secured facilities in Canada, France and the U.S.

Units of Sprott Physical Uranium Trust have soared 42% in September since our post "A Bitcoin-Like Opportunity In Uranium?"

Historically low prices and pandemic-driven mine disruptions have prompted uranium producers including Cameco to buy from the spot market to fulfill their long-term contracts with consumers. That means stockpiling by the Sprott fund may have the potential for tightening the market and boosting prices, in the process as prices rise, the value of the fund will rise as well, attracting more inflows, leading to even more uranium purchases, even higher prices and so on until we have another Hunt Brothers situation on our hands, only with uranium this time instead of silver.

The robust investment demand is built on a growing realization that nuclear power is becoming more accepted by policymakers worldwide as a way to limit greenhouse-gas emissions, Ciampaglia said Wednesday in an interview. Australia's reaction was merely confirmation of this.

“That’s something that’s just recent, and you’re seeing this from the Biden administration acknowledging and providing support for nuclear,” he said. “And the European Union clearly identifies nuclear as part of the taxonomy.”

As Bloomberg adds, Uranium is also getting a boost from generalist investors who are seeking investments that meet environmental, social and governance criteria or support the energy shift away from fossil fuels, he said.

Then there’s the recent buzz from retail investors, with uranium becoming a recent target of the meme-stock frenzy that share tips on Reddit message boards. Cameco, the world’s second-largest uranium miner, was the most searched stock symbol on Monday, according to WallStreetBets Ticker Sentiment.

Reddit day-traders “seem to be into it,” Bloomberg Intelligence analyst Eric Balchunas said in an interview. “When you have something that’s starting to surge that’s been beaten for 10 years and there’s some more room to run potentially, I think that’s what they’re trying to do.”

Tyler Durden Thu, 09/16/2021 - 21:30

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Government

Survey Shows Declining Concerns Among Americans About COVID-19

Survey Shows Declining Concerns Among Americans About COVID-19

A new survey reveals that only 20% of Americans view covid-19 as "a major threat"…

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Survey Shows Declining Concerns Among Americans About COVID-19

A new survey reveals that only 20% of Americans view covid-19 as "a major threat" to the health of the US population - a sharp decline from a high of 67% in July 2020.

(SARMDY/Shutterstock)

What's more, the Pew Research Center survey conducted from Feb. 7 to Feb. 11 showed that just 10% of Americans are concerned that they will  catch the disease and require hospitalization.

"This data represents a low ebb of public concern about the virus that reached its height in the summer and fall of 2020, when as many as two-thirds of Americans viewed COVID-19 as a major threat to public health," reads the report, which was published March 7.

According to the survey, half of the participants understand the significance of researchers and healthcare providers in understanding and treating long COVID - however 27% of participants consider this issue less important, while 22% of Americans are unaware of long COVID.

What's more, while Democrats were far more worried than Republicans in the past, that gap has narrowed significantly.

"In the pandemic’s first year, Democrats were routinely about 40 points more likely than Republicans to view the coronavirus as a major threat to the health of the U.S. population. This gap has waned as overall levels of concern have fallen," reads the report.

More via the Epoch Times;

The survey found that three in ten Democrats under 50 have received an updated COVID-19 vaccine, compared with 66 percent of Democrats ages 65 and older.

Moreover, 66 percent of Democrats ages 65 and older have received the updated COVID-19 vaccine, while only 24 percent of Republicans ages 65 and older have done so.

“This 42-point partisan gap is much wider now than at other points since the start of the outbreak. For instance, in August 2021, 93 percent of older Democrats and 78 percent of older Republicans said they had received all the shots needed to be fully vaccinated (a 15-point gap),” it noted.

COVID-19 No Longer an Emergency

The U.S. Centers for Disease Control and Prevention (CDC) recently issued its updated recommendations for the virus, which no longer require people to stay home for five days after testing positive for COVID-19.

The updated guidance recommends that people who contracted a respiratory virus stay home, and they can resume normal activities when their symptoms improve overall and their fever subsides for 24 hours without medication.

“We still must use the commonsense solutions we know work to protect ourselves and others from serious illness from respiratory viruses, this includes vaccination, treatment, and staying home when we get sick,” CDC director Dr. Mandy Cohen said in a statement.

The CDC said that while the virus remains a threat, it is now less likely to cause severe illness because of widespread immunity and improved tools to prevent and treat the disease.

Importantly, states and countries that have already adjusted recommended isolation times have not seen increased hospitalizations or deaths related to COVID-19,” it stated.

The federal government suspended its free at-home COVID-19 test program on March 8, according to a website set up by the government, following a decrease in COVID-19-related hospitalizations.

According to the CDC, hospitalization rates for COVID-19 and influenza diseases remain “elevated” but are decreasing in some parts of the United States.

Tyler Durden Sun, 03/10/2024 - 22:45

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International

Rand Paul Teases Senate GOP Leader Run – Musk Says “I Would Support”

Rand Paul Teases Senate GOP Leader Run – Musk Says "I Would Support"

Republican Kentucky Senator Rand Paul on Friday hinted that he may jump…

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Rand Paul Teases Senate GOP Leader Run - Musk Says "I Would Support"

Republican Kentucky Senator Rand Paul on Friday hinted that he may jump into the race to become the next Senate GOP leader, and Elon Musk was quick to support the idea. Republicans must find a successor for periodically malfunctioning Mitch McConnell, who recently announced he'll step down in November, though intending to keep his Senate seat until his term ends in January 2027, when he'd be within weeks of turning 86. 

So far, the announced field consists of two quintessential establishment types: John Cornyn of Texas and John Thune of South Dakota. While John Barrasso's name had been thrown around as one of "The Three Johns" considered top contenders, the Wyoming senator on Tuesday said he'll instead seek the number two slot as party whip. 

Paul used X to tease his potential bid for the position which -- if the GOP takes back the upper chamber in November -- could graduate from Minority Leader to Majority Leader. He started by telling his 5.1 million followers he'd had lots of people asking him about his interest in running...

...then followed up with a poll in which he predictably annihilated Cornyn and Thune, taking a 96% share as of Friday night, with the other two below 2% each. 

Elon Musk was quick to back the idea of Paul as GOP leader, while daring Cornyn and Thune to follow Paul's lead by throwing their names out for consideration by the Twitter-verse X-verse. 

Paul has been a stalwart opponent of security-state mass surveillance, foreign interventionism -- to include shoveling billions of dollars into the proxy war in Ukraine -- and out-of-control spending in general. He demonstrated the latter passion on the Senate floor this week as he ridiculed the latest kick-the-can spending package:   

In February, Paul used Senate rules to force his colleagues into a grueling Super Bowl weekend of votes, as he worked to derail a $95 billion foreign aid bill. "I think we should stay here as long as it takes,” said Paul. “If it takes a week or a month, I’ll force them to stay here to discuss why they think the border of Ukraine is more important than the US border.”

Don't expect a Majority Leader Paul to ditch the filibuster -- he's been a hardy user of the legislative delay tactic. In 2013, he spoke for 13 hours to fight the nomination of John Brennan as CIA director. In 2015, he orated for 10-and-a-half-hours to oppose extension of the Patriot Act

Rand Paul amid his 10 1/2 hour filibuster in 2015

Among the general public, Paul is probably best known as Capitol Hill's chief tormentor of Dr. Anthony Fauci, who was director of the National Institute of Allergy and Infectious Disease during the Covid-19 pandemic. Paul says the evidence indicates the virus emerged from China's Wuhan Institute of Virology. He's accused Fauci and other members of the US government public health apparatus of evading questions about their funding of the Chinese lab's "gain of function" research, which takes natural viruses and morphs them into something more dangerous. Paul has pointedly said that Fauci committed perjury in congressional hearings and that he belongs in jail "without question."   

Musk is neither the only nor the first noteworthy figure to back Paul for party leader. Just hours after McConnell announced his upcoming step-down from leadership, independent 2024 presidential candidate Robert F. Kennedy, Jr voiced his support: 

In a testament to the extent to which the establishment recoils at the libertarian-minded Paul, mainstream media outlets -- which have been quick to report on other developments in the majority leader race -- pretended not to notice that Paul had signaled his interest in the job. More than 24 hours after Paul's test-the-waters tweet-fest began, not a single major outlet had brought it to the attention of their audience. 

That may be his strongest endorsement yet. 

Tyler Durden Sun, 03/10/2024 - 20:25

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Government

The Great Replacement Loophole: Illegal Immigrants Score 5-Year Work Benefit While “Waiting” For Deporation, Asylum

The Great Replacement Loophole: Illegal Immigrants Score 5-Year Work Benefit While "Waiting" For Deporation, Asylum

Over the past several…

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The Great Replacement Loophole: Illegal Immigrants Score 5-Year Work Benefit While "Waiting" For Deporation, Asylum

Over the past several months we've pointed out that there has  been zero job creation for native-born workers since the summer of 2018...

... and that since Joe Biden was sworn into office, most of the post-pandemic job gains the administration continuously brags about have gone foreign-born (read immigrants, mostly illegal ones) workers.

And while the left might find this data almost as verboten as FBI crime statistics - as it directly supports the so-called "great replacement theory" we're not supposed to discuss - it also coincides with record numbers of illegal crossings into the United States under Biden.

In short, the Biden administration opened the floodgates, 10 million illegal immigrants poured into the country, and most of the post-pandemic "jobs recovery" went to foreign-born workers, of which illegal immigrants represent the largest chunk.

Asylum seekers from Venezuela await work permits on June 28, 2023 (via the Chicago Tribune)

'But Tyler, illegal immigrants can't possibly work in the United States whilst awaiting their asylum hearings,' one might hear from the peanut gallery. On the contrary: ever since Biden reversed a key aspect of Trump's labor policies, all illegal immigrants - even those awaiting deportation proceedings - have been given carte blanche to work while awaiting said proceedings for up to five years...

... something which even Elon Musk was shocked to learn.

Which leads us to another question: recall that the primary concern for the Biden admin for much of 2022 and 2023 was soaring prices, i.e., relentless inflation in general, and rising wages in particular, which in turn prompted even Goldman to admit two years ago that the diabolical wage-price spiral had been unleashed in the US (diabolical, because nothing absent a major economic shock, read recession or depression, can short-circuit it once it is in place).

Well, there is one other thing that can break the wage-price spiral loop: a flood of ultra-cheap illegal immigrant workers. But don't take our word for it: here is Fed Chair Jerome Powell himself during his February 60 Minutes interview:

PELLEY: Why was immigration important?

POWELL: Because, you know, immigrants come in, and they tend to work at a rate that is at or above that for non-immigrants. Immigrants who come to the country tend to be in the workforce at a slightly higher level than native Americans do. But that's largely because of the age difference. They tend to skew younger.

PELLEY: Why is immigration so important to the economy?

POWELL: Well, first of all, immigration policy is not the Fed's job. The immigration policy of the United States is really important and really much under discussion right now, and that's none of our business. We don't set immigration policy. We don't comment on it.

I will say, over time, though, the U.S. economy has benefited from immigration. And, frankly, just in the last, year a big part of the story of the labor market coming back into better balance is immigration returning to levels that were more typical of the pre-pandemic era.

PELLEY: The country needed the workers.

POWELL: It did. And so, that's what's been happening.

Translation: Immigrants work hard, and Americans are lazy. But much more importantly, since illegal immigrants will work for any pay, and since Biden's Department of Homeland Security, via its Citizenship and Immigration Services Agency, has made it so illegal immigrants can work in the US perfectly legally for up to 5 years (if not more), one can argue that the flood of illegals through the southern border has been the primary reason why inflation - or rather mostly wage inflation, that all too critical component of the wage-price spiral  - has moderated in in the past year, when the US labor market suddenly found itself flooded with millions of perfectly eligible workers, who just also happen to be illegal immigrants and thus have zero wage bargaining options.

None of this is to suggest that the relentless flood of immigrants into the US is not also driven by voting and census concerns - something Elon Musk has been pounding the table on in recent weeks, and has gone so far to call it "the biggest corruption of American democracy in the 21st century", but in retrospect, one can also argue that the only modest success the Biden admin has had in the past year - namely bringing inflation down from a torrid 9% annual rate to "only" 3% - has also been due to the millions of illegals he's imported into the country.

We would be remiss if we didn't also note that this so often carries catastrophic short-term consequences for the social fabric of the country (the Laken Riley fiasco being only the latest example), not to mention the far more dire long-term consequences for the future of the US - chief among them the trillions of dollars in debt the US will need to incur to pay for all those new illegal immigrants Democrat voters and low-paid workers. This is on top of the labor revolution that will kick in once AI leads to mass layoffs among high-paying, white-collar jobs, after which all those newly laid off native-born workers hoping to trade down to lower paying (if available) jobs will discover that hardened criminals from Honduras or Guatemala have already taken them, all thanks to Joe Biden.

Tyler Durden Sun, 03/10/2024 - 19:15

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