LEU - Centrus Energy Corp.: Riding The Nuclear Renaissance Wave

2024-07-15 10:01:36 ET

Summary

• Centrus Energy Corp.'s present business focuses on providing imported nuclear fuel and services for the U.S. domestic nuclear power industry.
• The U.S. government has enacted legislation intended to establish U.S. independence from imported nuclear fuel, alongside plans for tripling U.S. nuclear generation capacity by 2050.
• Centrus Energy Corp. has existing intellectual property, know-how, and the necessary licensing, to produce LEU and HALEU fuel domestically to meet anticipated demand growth arising from the U.S. government's actions.
• Centrus Energy Corp. is well positioned to greatly expand its nuclear fuel supply and services business, based on producing nuclear fuel domestically and supplying to an expected strongly growing market.

The above image shows a nuclear fuel bundle with fuel pellets shown in the foreground. Just under one centimeter in diameter and a little more than one centimeter long, a single pellet in a typical reactor yields about the same amount of energy as one tonne of steaming coal.

Centrus Energy: Investment Thesis

Most of my articles for Seeking Alpha are based on fundamental analysis. At the same time, I appreciate other forms of analysis addressing behavioral aspects of investors and the psychology of the market. But one of the lesser discussed approaches on Seeking Alpha is strategic analysis. I see a strategic opportunity arising from the need for increased production of enriched uranium for the expected huge increase in emissions-free base load nuclear power reactors to support the roll-out of variable renewals....

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