Russian Sanctions Supercharge Domestic Market

Written By Jason Williams

Updated January 10, 2024

Over the course of the past two months, a bill containing new sanctions on Russia has been quietly making its way through Congress…

In May it got overwhelming bipartisan support in the House committee tasked with its first review.

That alone should tell you this bill is going to become law. I mean, Democrats and Republicans can’t even agree on what the definition of a woman is, but they’re both all-in on these new sanctions.

And just this week, the Department of Energy (DOE) made an announcement that tells me it knows that this bill is definitely getting approved by the rest of the House, the Senate, and the White House.

But if you haven’t heard anything about either the bill or the DOE’s announcement, I wouldn’t blame you. Neither got any coverage in the mainstream media.

I actually only found out about them because they involve an industry I’ve been closely monitoring for the past few years.

Were I not tuned in to that industry, this news probably would have slipped past me just the way it’s evidently slipped past the mainstream media and even the financial community.

But since I uncovered it, I haven’t been able to stop thinking about its implications for a certain small U.S. company.

And after reading the announcement from the DOE, I had to share it all with you before the rank-and-file world picks up on it…

Everything (Russian) Must Go

Now, the fact that the U.S. and our allies have imposed sanctions on Russia, its politicians, its businesses, and the billionaires who run them shouldn’t be news to anyone who reads these pages.

We’ve discussed it ad nauseam and the mainstream media have been all over it like flies on a pile of you-know-what.

But there was one critical resource that we never included in those import bans that we hoped would kill the Russian energy industry and strangle the Russian war machine.

That’s all coming to an end, though, thanks to this bill. And I’m sure of it thanks to the actions the DOE is taking to shore up domestic production of this very resource.

You see, Russia’s energy dominance doesn’t end with oil and natural gas. It’s also one of the few countries that produces the uranium fuel for the world’s nuclear reactors.

It’s one of five countries with the world’s largest uranium resources.

And while other countries we’re friendlier with, such as Canada and Australia, are home to bigger reserves, mining the material isn’t the whole equation.

Raw uranium isn’t good for much of anything, especially generating energy in nuclear reactors.

It’s got to be processed and refined into a concentrate, then converted to a gas, and then enriched back into a solid fuel.

And that’s where Russia has a stranglehold on the world’s nuclear industry

In 2020, nearly half of the world’s enriched uranium came from Russia (and a quarter of it came from China — another country we’re not exactly on the best terms with):

uranium refining

As you can see, Canada was responsible for 28%, and France contributed 8%. The remaining 1% was split among the rest of the world…

But the vast majority, a whopping 63% of all the usable nuclear fuel in the entire world, came from two countries who’d rather see the U.S. fail than help it succeed.

And when (not if) that bill passes to add Russian uranium to the list of forbidden imports, it’ll make nearly 40% of the world’s nuclear fuel off-limits to 100% of Western nations that rely on it.

But the Department of Energy sees things differently. Instead of a problem for Western energy needs, it sees an opportunity for domestic industry here in the U.S. to pick up the slack.

And that’s what its recent announcements are all about…

New Reactors Require New Fuel

The nuclear reactors of “olden times” that rely on that Russian and Chinese uranium are on their way out.

They’re big (requiring acres and acres of land to build just one). They’re costly (the most recently completed one ran hundreds of billions of dollars over budget). And they take decades to construct.

They also conjure images of disasters like Chernobyl, Three Mile Island, and Fukushima in the minds of pretty much everyone.

So it’s no surprise we’re not in a rush to build any more of them. But there’s a new generation of reactors currently being developed and tested right here in the United States.

They’re small. They’re mobile. They’re not prone to meltdowns. And they’re powered by a new kind of fuel source that’s far cleaner than the uranium our old ones used…

Unfortunately, most of that kind of fuel is manufactured in… you guessed it… Russia!

So when this new ban on Russian uranium goes into effect, if nothing’s done here in the States, those new reactors will become nothing more than expensive boondoggles and footnotes in history books.

And that’s why the DOE is acting BEFORE sanctions hit our main supplier of nuclear fuel. That’s why it’s greenlighting a nuclear renaissance here in the United States.

And that brings me back to the announcement that got me so excited that I had to share it with you…

Years of Preparation Finally Pays Off

Back in 2019, the DOE reached out to U.S. companies and asked them to help it create a domestic uranium refining industry.

Many companies submitted bids, but only one was selected to receive the support (and funding) of the DOE and Nuclear Regulatory Commission (NRC).

And this company, the only one that received a license to produce the new fuel this new generation of reactors will need to operate, has spent the years since then constructing and testing a state-of-the-art facility where it could make that fuel at scale.

It didn’t just get help from the DOE and NRC, though. Since it was the only company inside the U.S. that would be allowed to even attempt to make the fuel, the companies who’ll need it for their reactors all came knocking too.

And this company inked a deal with the one that’s come the furthest toward developing functional reactors.

That company, TerraPower, agreed not only to help fund, design, and test the production facility, but also to buy every last ounce of the new fuel once the company is producing it at scale.

And after years of testing and configuring and retesting, this small company finally got the approval it needed from the NRC to start producing the fuel at scale!

Now the one question that’s been keeping the CEOs of nuclear research companies like TerraPower up at night — “Where will we get this fuel?” — has been answered.

And the answer is this small company that I’d bet 90% of investors have never heard of. Why? Because it’s got the ONLY NRC-licensed production facility in the world!

Old Dog, New Trick

And the thing is, this isn’t some young startup taking advantage of a recent trend. This company has been around since the U.S. nuclear industry was first created.

In fact, it used to be the world’s leading supplier of uranium fuel for power plants across the globe. That was back when it was literally a subsidiary of the DOE itself.

But Congress, in all it’s brilliance, decided it was better to rely on Russia and China than have our own energy independence.

So it shut the company down and the DOE sold off the technology to private investors.

Thankfully for us, those private investors had more foresight than the geniuses in Washington.

And they kept the company going through their own investments, knowing the day would come when we’d regret our shortsighted decision and come begging it to help us out of a bind.

And friends, that day has come. The U.S. is racing against time to diversify its energy generation sources.

And in order to truly end its reliance on fossil fuels, nuclear MUST play a huge role in the diversification.

For that to happen, our country desperately needs a domestic source of uranium fuel. The new sanctions on Russian industry will only exacerbate that need.

This old dog has the ONLY solution to that growing problem.

And you can probably already figure out what that means for its investors…

Money, Money, Money!

Yep. You guessed it again… big money heading their way!

money money money

In the few weeks since the new sanctions passed the House committee, shares of this company have already soared by double the amount of the markets (and it’s been a pretty solid month for those).

And in the few days since the NRC gave the green light for this little company to start producing fuel, it’s absolutely crushed the broader market (which has been trending down while this stock soars).

But the word still hasn’t hit the street and the masses still haven’t caught onto the immense potential stuffed into this little package.

So, in my opinion, the shares are still ridiculously cheap and poised for a massive rally as this news really sets in and investors start to understand the gravity of the situation.

We’re talking about a company that could have a government-approved monopoly on the production of the only kind of fuel the new generation of nuclear reactors will require.

And it’s trading at a fraction of its value. In fact, I wouldn’t be surprised to see its stock price double once investors catch wind of the approvals it just got and the sanctions about to hit the market.

And that would still put it a good 50% lower than what some of my forecasts project its peak price will hit.

So you could get in now and watch your money double… and then double again.

Or you could wait and watch as others ride this wave of profits that’s just starting to build.

I don’t think I have to tell you what my choice would be. And I’m pretty sure I know what yours will be, too.

So, to help you get started, I’m including access to a free report on the industry, the new breed of reactors and the new fuel they’ll demand, the history of nuclear fuel production (that all started with this company), and the company itself (the only one with a license to fuel the new generation of nuclear power we’re about to behold).

I hope you’ll give it a read and get yourself invested before shares head up any higher. But you’ll have to make that decision yourself.

To your wealth,

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Jason Williams

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After graduating Cum Laude in finance and economics, Jason designed and analyzed complex projects for the U.S. Army. He made the jump to the private sector as an investment banking analyst at Morgan Stanley, where he eventually led his own team responsible for billions of dollars in daily trading. Jason left Wall Street to found his own investment office and now shares the strategies he used and the network he built with you. Jason is the founder of Main Street Ventures, a pre-IPO investment newsletter; the founder of Future Giants, a nano cap investing service; and authors The Wealth Advisory income stock newsletter. He is also the managing editor of Wealth Daily. To learn more about Jason, click here.

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