1

Lifton with Energy Fuels’ Moore on Trump and who has the largest uranium capacity in the US

“We have three production facilities. We have the White Mesa Mill in southeast Utah that is operating today…It has a capacity of producing 8 million pounds a year. We have an in-situ recovery (ISR) facility in Wyoming called the Nichols Ranch facility. It has a licensed capacity of 2 million pounds a year. Then we have Alta Mesa in-situ facility in South Texas which has produced about a million pounds per year. Nobody has as much capacity as we have…Uranium has not necessarily been on the government’s watchlist until recently. When President Trump came into office, he issued a critical minerals list and there was finally a recognition that uranium is critical not just for the US national security but also for US energy security. There were 35 minerals on that list including vanadium. We are one of the major producers of vanadium in the United States. So, two of the minerals on that list are produced by Energy Fuels.” States Curtis Moore, VP of Marketing and Corporate Development at Energy Fuels Inc. (NYSE American: UUUU | TSX: EFR), in an interview with InvestorIntel’s Jack Lifton.

Curtis went on to say that the US consumes about 47 million pounds of uranium per year but the country produced just 172,000 pounds of uranium last year which is not sufficient to supply even one nuclear reactor. Energy Fuels is the largest producer of uranium in the United States and has the only producing conventional uranium mill in the U.S. Curtis also said that the US imports close to 40% of its uranium from Kazakstan, Russia, and Uzbekistan which are geopolitical rivals of the country. Uranium price is about $25 per pound which below the cost of production of almost all of the US uranium producers. The heavily subsidized state-owned enterprises of Russia and China are flooding the market which is having an impact on the national security of the countries like the United States.

To access the complete interview, click here

Disclaimer: Energy Fuels Inc. is an advertorial member of InvestorIntel Corp.




Pay attention to the media flag on a play for the rare earths market field

“Is Teenage Head still around?” I asked the doorman incredulously on Saturday evening, as I entered the Rockpile to see a tribute band for The Who that a family member had insisted I attend last night. “Teenage Head?” she started, “are you kidding – we have the Killer Dwarfs returning next month!” she finished enthusiastically. How can early eighties bands survive and just stay the same when so much of the rest of our lives is so very different, I wondered.

Having invested part of my Saturday looking at family photos from the late seventies, early eighties, I was considering how news stories in the seventies arrived only three ways: telephone, mail and the newspaper. Siphoned through media sieves, public perception was easily manipulated — we believed the news. Today, with endless data outlets and media streams than ever imagined, at moments I feel as if I know less, and trust nothing.

So yesterday, when I examined our Top 10 columns in our Trending section (listed below), I paused as this is a highly unusual week and am calling a flag on a play for the rare earths market field! With 7 out of the 10 columns that are presently most read on InvestorIntel.com being about rare earths this is indeed a rare readership trend indeed. So I text messaged an associate in the industry in NYC this morning who is also following this trend — and he text messaged me back an interview with a CNN story on Hong Kong enters 11th consecutive weekend, a piece on how rare earths are China’s nuclear option in trade war with U.S. and a headline story on how Beijing warns US ‘will bear all consequences’ after $8billion jet deal. In doing my own search, I see that the only non-Chinese producing rare earths public company Lynas is headlining with its own issues with Hundreds of protesters gather to slam Malaysia’s decision on Lynas.

My point? The news feed flow suggests we have another rare earths and critical materials bubble preparing to start. This said, with gold +$1500, I do not see this translating to the exploration market (yet), is there any reason to believe we are going to see any immediate action in the rare earths market? My answer is — it seems likely.

Let’s consider this angle. In my experience investors that play the market need an ability to invest on what’s happening geopolitically, and with few rare earths’ companies in existence outside of China this should be a bonanza for any shareholder lucky enough to have picked one of the rising stars. And yes, I will publish a list for you of who the front runners are, as there are simply not many to pick from, but let’s start by reviewing what the InvestorIntel was reading over the last week —- as its going to be an exciting week it seems from our Trending indicators.

  1. #TrendingNow #1 on @Investor_Intel – Read: The U.S. #rareearths saga continues… bit.ly/2XV72wR
  2. #TrendingNow #2 on @Investor_Intel – Read: #Trump amends #Defense Production Act for #RareEarths bit.ly/2Z64ete #DoD #POTUS #Rareearths #DOD
  3. #TrendingNow #3 on @Investor_Intel – Read: Scandium International soars 41.67% last week on positive news from its Nyngan Scandium Project http://bit.ly/2Yb27YF
  4. #TrendingNow #4 on @Investor_Intel – Read: The #cobalt market prepares for another ride http://bit.ly/2MjpNUu #battery #ElectricVehicle #EV
  5. #TrendingNow #5 on @Investor_Intel – Read: #Avalon on #rareearths and #criticalmaterials in North America http://bit.ly/2y9X8Ih @AvalonAdvanced $AVL $AVLNF
  6. #TrendingNow #6 on @Investor_Intel – Watch: Don Bubar on the renewed concern about the security of supply of #rareearths in the global markets https://youtu.be/O_XkB-H020g @AvalonAdvanced $AVL $AVLNF
  7. #TrendingNow #7 #AlkaneResources’ disruptive technology to reduce metallization costs by +50% https://youtu.be/1cZPdqCAOvY #RareEarths #zirconium #hafnium #neodymium #praseodymium @AlkaneResources $ALK.A $ANLKY
  8. #TrendingNow #8 on @Investor_Intel – Read: The Pikhuutaau Agreement marks a key milestone for Critical Elements Lithium http://bit.ly/2Z610G7 cc: @investor_Intel #rareearths
  9. #TrendingNow #9 on @Investor_Intel – Watch: Vance White on the next boom in the commodity cycle http://bit.ly/2OgTBCV cc: @investor_Intel #gold
  10. #TrendingNow #10 on @Investor_Intel – Watch: If you want to find out what is REAL in the #graphene market versus all of the ‘hype’ as @TracyWeslosky interviews Dr. Ian Flint on the ‘real’ graphene market https://youtu.be/zfQ74JM-iYI

 




Trump says lack of uranium is threat to national security

“Currently, the United States imports approximately 93 percent of its commercial uranium, compared to 85.8 percent in 2009.” is an excerpt from the Presidential Memorandum on the Effect of Uranium Imports on the National Security and Establishment of the United States Nuclear Fuel Working Group published on Saturday, July 13th.

The conclusion? “…a fuller analysis of national security considerations with respect to the entire nuclear fuel supply chain is necessary at this time.”

While Trump did “…not concur with the Secretary’s finding that uranium imports threaten to impair the national security of the United States as defined under section 232 of the Act.” He did “…agree that the Secretary’s findings raise significant concerns regarding the impact of uranium imports on the national security with respect to domestic mining…”

Bottom line? Trump says the issue is bigger than just quotas and in another 90-days “the Working Group, through the Assistant to the President for National Security Affairs and the Assistant to the President for Economic Policy, shall submit a report to the President setting forth the Working Group’s findings and making recommendations to further enable domestic nuclear fuel production if needed.”

More specifically, he states that: “I agree with the Secretary that the United States uranium industry faces significant challenges in producing uranium domestically and that this is an issue of national security. The United States requires domestically produced uranium to satisfy Department of Defense (DOD) requirements for maintaining effective military capabilities — including nuclear fuel for the United States Navy’s fleet of nuclear-powered aircraft carriers and nuclear-powered submarines, source material for nuclear weapons, and other functions.”

Meanwhile, the endless miscommunications throughout the media and regurgitated through social media that pummeled stocks with U.S. based sources of uranium on Friday that were the catalyst for some sizable volume and strong downward pressure on stocks with U.S. based uranium sources.

Ur-Energy Inc. (NYSE American: URG | TSX: URE) placing a news release out on Friday after their stock had been halted that clearly stated that no news had been released, here is a snapshot of what transpired on the market on Friday.

And today? The story continues to spin as the NY Times headline on page 10 reads “Trump Rejects Trade Barriers on Foreign Uranium, Saying it Poses No Threat”. Title is quite misleading as you can see from the excerpts we have quoted above from the POTUS site; it is, however, cleverly positioned — pinned below a column titled “Rehearsing for a Shadow War Against a Foe Embraced by Trump”.

The best summary on this matter was issued via a news release from the two companies that submitted Petition 232, Energy Fuels Inc. (NYSE American: UUUU | TSX: EFR) and Ur-Energy Inc. (NYSE American: URG | TSX: URE) yesterday. Their news release, titled President Trump Announces that the Significant Challenges Facing U.S. Uranium Mining Are a National Security Issue is full of hard-hitting uranium data, it starts with: “The entire front end of the U.S. nuclear fuel cycle is under siege. The American uranium mining industry will produce less than 1 percent of the uranium needed to fuel U.S. nuclear power plants this year. The only domestic uranium conversion facility in the U.S. shut down in 2017, and we lack any domestic uranium enrichment capability for national security applications.”

They go on to add: “The Trump administration has identified uranium as critical to the nation’s security and economic prosperity, but the U.S. overwhelmingly relies on imported uranium. Uranium deliveries from state-owned companies in Russia , Kazakhstan and Uzbekistan increased 16 percent from 2017 to 2018, according to the U.S. Energy Information Administration. These countries provided 44 percent of the uranium imported in the U.S. last year. Meanwhile, U.S. mines produced 37 percent less uranium from 2017 to 2018, reaching a record low. Deliveries from Canada and Australia, allied nations whose production is also in steep decline due to the flood of uranium from state-owned companies, declined by 25 percent.”

So, while Trump has “at this time” disagreed to quotas – he does agree that the U.S. uranium industry faces significant challenges in producing uranium domestically. And that this is an issue of national security that is both relevant and timely, which is why it requires a Working Group with 90-days to assess and get back to him. Better yet, he also said we need to study the importance of re-establishing the frontend of the Nuclear fuel cycle. Finally, a chance for all of us to benefit from a better understanding of the entire nuclear supply chain as whole in the United States.




Apathy Let Cambridge Analytica Abuse 50 million Facebook Accounts

It was revealed last week that Cambridge Analytica abused personal information from 50 million Facebook accounts in early 2014 to build a system to profile individual American voters for the 2016 presidential election. The goal was to then target the users with personalised political advertisements attacking Hilary Clinton and loving The Donald. It’s still not clear whether this was illegal or merely repugnant.

Most people are focussing on the fact that Cambridge Analytica was headed at the time by Steve Bannon, which provides yet another malodorous link to Trump. Facebook’s share price is down about 12% but so far there has been no accountability apart from the inevitable class action litigation lawyers circling. What matters the most here is that we are becoming de-sensitized to data breaches like this.

$300M of Etherium permanently lost. Hey, it’s just crypto and it wasn’t mine, so who cares?

Do you know anyone who lost sleep over 143 million Americans and 100,000 Canadians that were exposed by Equifax’s massive data breach.

Every Yahoo account was compromised in 2013, which Yahoo did not figure out until 2017. That was 3 billion accounts. You likely had one of those accounts. Did you complain about it?

Citibank failed to protect the personal data (including birthdates and Social Security numbers) of approximately 146,000 customers who filed for bankruptcy between 2007 and 2011. That’s adding insult to injury.

40 million Target customers were exposed in 2013. The remedial cost to Target, not including the class action litigation, was roughly $252M. Did you join the class to get your rightful piece of the settlement?

$81 million stolen from the Bank of Bangladesh by compromising the Swift system in 2016. This was the second time Swift was used as a medium of theft. But hey, that could never happen over here in the civilized world, right?

Look at the lists here and here and here for some of the largest data breaches of all time. How many of these do you remember, or care about?

Even worse, according to the Online Trust Alliance in its terrifying Cybersecurity and Breach Trends Report from January of this year, is that 93% of these breaches were self-inflicted and easily preventable. Apathy is our real enemy.

And next up are the assaults from Artificial Intelligence.

AI spans a broad area. A Nest WiFi-enabled thermostat can self-regulate if it feels the sun directly on it rather than air in the home environment – is that ‘intelligent’ or just good programming? Cruise control on your car? A video game that gets harder the further you go and that learns your favourite moves? Neural networks? Deep learning? The hated robo-advisor? Predictive weather analysis? Smart tokens in the ICO universe?

AI is just a software operating in a hardware environment, but somehow it has gained noble status. Perhaps it’s the use of the word “intelligence” that lulls us into thinking that the software is actually alive.

It’s not. It’s just software, a compendium of zeros and ones that open and close circuits inside chips. Software is vulnerable to coding errors, intentional or negligent. It’s vulnerable to breakdowns in its hardware. And it’s entirely vulnerable to malicious third parties for cryptojacking.

Our courts and insurers will have to address who becomes liable when those things go wrong. The worse situation is where software causes death, like earlier this week when a self-driving car killed a woman in Tempe, Arizona. Elaine Herzberg was walking her bicycle when she was hit by a vehicle in autonomous mode going 40 km/h. It doesn’t take a crystal ball to see Mr. Herzberg is the first of many such deaths.

Who will carry the financial burden of the error when smart tokens co-ordinate a contract for one billion rolls of toilet paper when the intention was for 100 rolls of paper towel? Is this contract law or negligence? Can you contract out of liability? Medical diagnostic software misses an obvious cause resulting in patient death? Who pays the repair bills when Skynet finally goes live and the Terminator kicks in your door?

Vernor Vinge’s 1993 short paper The Coming Tehnological Singularity is a marvel of literature that manages to inspire and terrify at the same time. Should something we created actually develop its own intelligence, the pace at which technology would from that point develop would be inconceivable to humans. The human era would be over.

Back to the breaches, both malicious and self-inflicted. Incompetence and thievery have been with humanity for recorded history. The first trojan horse was the serpent surreptitiously attacking the Old Testament God by way of his human creations and an apple. Sadly, we do need various levels of government to help us defend ourselves. This will require some levels of regulation, even if unwanted.

The CryptoCrowd may not like it, but regulation is needed and it’s coming. At least there seems to be some regulatory recognition that data is a different world requiring a different set of regulatory parameters. See for example the British Columbia Securities Commission’s 2018 outreach efforts seeking innovation while maintaining confidence in the capital markets.

This apathy is a strange mindset, especially since the business world otherwise takes confidentiality seriously. We sign confidentiality agreements and NDA’s. We expect our employees to leave our IP at the office. Securities laws exist to prevent insider trading and to protect the dignity of the market. Larger boards have committees specializing in privacy and data protection. There are few things more valuable to any company than the integrity of its data.

So we should be outraged by these ongoing assaults on us, our data and our companies. We should be in the streets, with torches and pitchforks, demanding that heads roll and attackers be found. Instead, we shrug and say “What can we do? I’m just one helpless person. The government will protect us.” That only goes so far.

We have to use what the government gives us. CASL (Canada’s AntiSpam Legislation) is a horribly mis-named piece of legislation that has teeth. It codifies an individual’s right to control the inbox. It isn’t about spam, it’s about your digital liberty.

The GDPR is the European Union’s approach, and it’s a good one. A prior article explaining GDPR is here. Recent recommendations from House of Commons Standing Committee on Access to Information, Privacy and Ethics indicate that Canada will adopt an approach similar to GDPR to give you the tools to protect yourself. So use them.

Ultimately, it’s up to you. Be vigilant. Protect your local network. Follow good protocols. Don’t be sloppy. And be angry over every breach. Demand accountability. Next time it could be you.