Rapid fire with nuclear opportunities investor Guy Keller

When I last spoke to Guy Keller, Portfolio Manager for the Tribeca Nuclear Opportunities Fund, in June, he spoke of the supply and demand imbalances in the uranium market and said the following; 

“I used to subscribe to the idea that US$60 was a medium-term incentive price to bring supply to the market. I'm now of the view that that price is a minimum of US$75."

At the time, the uranium prices were sub-US$60 per pound. Today, they are within a whisker of the $75 level, as can be seen on the chart below, and yet the long-term, structural supply/demand imbalance remains. 

So, what next for uranium and nuclear opportunities?

In this Rapid fire interview, Keller outlines the scale of the opportunity in nuclear right now, answers whether or not investors have missed the boat, and talks about the biggest risks and and most exciting elements in the space over the coming 12 months. 

And stay tuned for the full interview, coming out on Wednesday morning

Topics discussed

0:00 - Intro
0:05 - The size of the opportunity
0:16 - Ready for boarding
0:33 - The biggest risks
0:45 - Reactors in Australia?
0:49 - It's only just beginning

Edited Transcript

Chris Conway: Guy, thanks for agreeing to do a rapid fire with Livewire Markets about the nuclear opportunities fund. First question for you. How big is the opportunity in nuclear right now?

Guy Keller: Well, the opportunity is only just beginning because we're not producing enough uranium to fulfil the current demand, let alone the future demand.

Chris Conway: With uranium prices having already surged, have investors missed the boat?

Guy Keller: Investors have certainly missed the first little kick off the bottom, but we're going to be at the beginning of a multi-decade contracting cycle from utilities who've had a decade of not contracting, and the biggest mistake they can make is running out of fuel.

Chris Conway: What's the biggest risk in the market, Guy?

Guy Keller: The biggest risk in the market is that technology elsewhere finds a faster solution to decarbonize the electricity grid.

Chris Conway: Yes or no answer. Will we ever have nuclear reactors in Australia?

Guy Keller: Yes.

Chris Conway: Last one. What has you most excited about this space over the next 12 months?

Guy Keller: That it's only just beginning. As I said before, utilities are starting to come to the party, prices are responding. The equity has not responded yet and it's got plenty of catch-up to do to get anywhere near being able to produce the uranium the world requires.

Chris Conway: Guy, thanks for chatting with Livewire.

Guy Keller: No worries.