Why High-Assay Low-Enriched Uranium Is the World’s Hottest Commodity

Jason Simpkins

Updated June 3, 2024

There’s not a commodity on the planet right now that’s generating more buzz than high-assay low-enriched uranium, or HALEU.

To begin with, uranium in general is in the midst of a massive bull market. The price of uranium has about doubled in value in just the past year, surging from $47 per pound to its current level of $90. (It was over $100 back in January, its highest level in 16 years.)

High Assay Low Enriched Uranium Price Chart

The reasons for this are simple. Uranium fell out of favor after the Fukushima nuclear disaster in 2011. That led to a lost decade for the fuel during which prices cratered, making exploration and production uneconomical. 

As a result, roughly 85% of uranium miners were wiped out as prices crashed from 2011–2020. Nevertheless, demand for uranium continued to rise, driven by soaring energy consumption and the efficiency and clean-burning nature of nuclear plants. 

Indeed, nuclear power plants produce a huge amount of power at a relatively low cost. And they do so without producing carbon emissions — making them a key piece of the clean energy puzzle.

Given that, it’s no surprise the political sentiment toward uranium and nuclear power took a positive turn as we moved past Japan’s meltdown. Furthermore, around the same time, our government came to realize that America’s reliance on Russia for its uranium supplies was not sustainable

In fact, it’s a national security liability. And the Biden administration has responded by putting tens of millions of dollars into America’s nuclear industry, from uranium producers to nuclear power providers.

Again, that’s been a huge boon for uranium prices and nuclear power companies. But it’s been especially huge for high-assay low-enriched uranium and for the only company in America capable of producing it. 

What Is High-Assay Low-Enriched Uranium?

High-assay low-enriched uranium is essentially a more potent form of uranium-235, the main fissile isotope that produces energy. It provides more power at a lower volume.

Whereas traditional uranium is enriched up to 5%, HALEU is enriched up to 20%. As such, a single pellet creates as much energy as 1 ton of coal, 149 gallons of oil, or 17,000 cubic feet of natural gas.

This is obviously key because it makes nuclear reactors even more efficient than they already were. However, it’s also a huge leap forward because it means smaller amounts of fuel can be used to power smaller reactors that can be deployed more easily. 

That is truly the future of nuclear power — not the massive, iconic cooling towers that we’ve all come to associate with nuclear power plants but small modular reactors, or SMRs.

SMRs can be mass-produced in a factory and transported in a truck. They’re also safer than sprawling nuclear plants. But most importantly, they come at a fraction of the cost.

TCN Truck Diagram Image 17

Indeed, the latest conventional reactor in the U.S. cost $35 billion. SMRs can be built for as little as $60 million a piece.

So, rather than build expensive nuclear power plants, which have a massive physical footprint and NIMBY (not in my backyard) stigma, power consumers — especially wealthy tech companies with power-hungry data centers — can effectively build their own mini-nuclear plant right on-site.

Do you understand what a game-changer that is? It solves one of the biggest problems our country currently faces — a massive shortfall of clean energy.

But now here’s the rub…

There’s only one company in America that can produce HALEU. It’s so far ahead of the game it’s not even funny.

It essentially has a legal monopoly. It’s already booking deals and the stock is steadily moving higher as investors catch on. 

The good news, though, is that it’s not too late to get in on it. Yes, savvy investors are beginning to catch on. But generally speaking, the public is completely unaware of this entire situation.

They have no idea what HALEU is. They have no idea that the entire nuclear energy sector is in the midst of a revolution in terms of size and scale. And they have no idea that there’s a company just sitting there waiting to reap all of the profits. 

That means there’s still time for you to get ahead. All you have to do is check out Alex Koyfman’s full report right here.

Fight on,

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Jason Simpkins

Simpkins is the founder and editor of Secret Stock Files, an investment service that focuses on companies with assets — tangible resources and products that can hold and appreciate in value. He covers mining companies, energy companies, defense contractors, dividend payers, commodities, staples, legacies and more…

In 2023 he joined The Wealth Advisory team as a defense market analyst where he reviews and recommends new military and government opportunities that come across his radar, especially those that spin-off healthy, growing income streams. For more on Jason, check out his editor’s page.

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