Dan Hamernik @Smudliczek: "📢 Hello to all my..."

Bought $KAP.L @79.524

Czech Republic

📢 Hello to all my copiers and followers! 👋 𝐍𝐮𝐜𝐥𝐞𝐚𝐫 𝐑𝐞𝐧𝐚𝐢𝐬𝐬𝐚𝐧𝐜𝐞? ⚛️ I have just opened a new position with 0.84% of my capital and added a new company to the portfolio $KAP.L (Nac Kazatomprom Jsc-Gdr Regs) That means I’m now adding uranium exposure through Kazatomprom, the world’s largest uranium producer. 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐮𝐫𝐚𝐧𝐢𝐮𝐦, 𝐚𝐜𝐭𝐮𝐚𝐥𝐥𝐲? Uranium is a fascinating element and a small paradox at the same time. It is the heaviest naturally occurring element on Earth and at the same time it is basically the only practical fuel source for commercial-scale nuclear fission power. Technically, uranium is a metal. But we don’t care about it because it is shiny. We care about it because of its extreme energy density. In a world where electricity demand is rising, grids are under pressure, AI data centers are consuming more and more power, and governments are slowly rediscovering that stable baseload energy is not some optional luxury, uranium becomes interesting again. 𝐅𝐫𝐨𝐦 𝐫𝐨𝐜𝐤 𝐭𝐨 𝐧𝐮𝐜𝐥𝐞𝐚𝐫 𝐟𝐮𝐞𝐥 ⛏️ The fuel cycle looks roughly like this: Mining ore → milling → chemical processing → yellowcake → UF₆ conversion → enrichment → fuel fabrication → reactor fuel. And because a meaningful part of the final nuclear fuel cost comes from the mining-to-yellowcake part of the chain, I find the commodity side of the story worth looking at in more detail. That is where Kazatomprom becomes interesting. 𝐖𝐡𝐲 𝐊𝐚𝐳𝐚𝐭𝐨𝐦𝐩𝐫𝐨𝐦? Traditional underground uranium mining is expensive. You need to build shafts, move huge amounts of rock, bring ore to the surface, process it, manage ventilation, water pumping, workers, safety, tailings, waste, and all the other lovely things that make mining such a wonderfully unpleasant business. Capex can run into billions. Operating costs can be high. Environmental liabilities are not exactly decorative flowers either. Kazatomprom is different. Kazatomprom’s AISC is roughly around $29–30/lb, while some competitors can be above $45/lb. So how do they do it? 𝐈𝐧-𝐬𝐢𝐭𝐮 𝐫𝐞𝐜𝐨𝐯𝐞𝐫𝐲: 𝐭𝐡𝐞 𝐠𝐞𝐨𝐥𝐨𝐠𝐲 𝐚𝐝𝐯𝐚𝐧𝐭𝐚𝐠𝐞 🧪 The answer is geology and a mining method called in-situ recovery, or ISR. It is also sometimes called in-situ leaching, or ISL. Kazakhstan’s uranium deposits are located in sandstone formations, relatively close to the surface, usually around 100–800 meters deep. The uranium-bearing layer is trapped between two impermeable layers. A beautiful geological sandwich, basically. Instead of building a classic mine, Kazatomprom drills a network of wells. Some wells inject a weak sulfuric acid solution with oxygen into the ore body. This dissolves the uranium underground. Other wells pump the uranium-rich solution back to the surface. Then chemical processing turns it into yellowcake. It takes time, often several years, but in uranium mining there is not exactly a need to rush like a SaaS company trying to explain why AI agents won’t destroy its pricing model. 𝐒𝐮𝐩𝐩𝐥𝐲 𝐚𝐧𝐝 𝐝𝐞𝐦𝐚𝐧𝐝 ⚛️📈 Global reactor uranium requirements in 2025 are estimated at roughly 68,920 tU per year. Global primary mine supply was around 62,200 tU. The gap is currently covered by secondary sources such as inventories, recycling and other stockpiles. But after two decades of drawdowns, those secondary sources are becoming thinner. The World Nuclear Association’s September 2025 Nuclear Fuel Report estimates that in its reference scenario, uranium demand grows from around 68,920 tU in 2025 to approximately 150,000 tU by 2040. For the nearer-term milestone, 2030 demand is estimated at around 83,840 tU. That is roughly +28% versus today. So the setup is quite simple: ⚛️ Nuclear power is coming back into political favor ⚛️ AI and electrification are increasing power demand ⚛️ Uranium mine supply is not growing fast enough ⚛️ Secondary inventories are not infinite ⚛️ Kazatomprom sits on some of the lowest-cost production in the world 𝐌𝐲 𝐯𝐢𝐞𝐰 I expect uranium prices to move higher over the coming years. That does not mean the position will move in a straight line. Commodity equities rarely do that. They usually prefer emotional violence, because apparently financial markets were designed by someone who disliked sleep. But from a medium- to long-term perspective, I like the combination of: ⚛️ structurally rising uranium demand ⚛️ constrained primary supply ⚛️ low-cost ISR production ⚛️ Kazakhstan’s dominant role in global uranium supply ⚛️ and Kazatomprom’s position as the largest producer in the world That is why I decided to open a starting position in $KAP.L. Small position for now, but thematically very interesting. Onwards 🚀 This is not investment advice. I am only sharing my personal portfolio activity and market view. Capital is at risk. Past performance is not indicative of future results.

Not investment advice. The author may have financial interests in the mentioned instruments.

KAP.L

Nac Kazatomprom Jsc-Gdr Regs

68.600

0.300 (0.44%)

1 Mentioned

KAP.L

Nac Kazatomprom Jsc-Gdr Regs

Strictly Necessary Cookies

Performance Cookies

Functional Cookies

Targeting Cookies