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Bill Boosts US Uranium Industry

The US government is poised to provide a massive $2.7 billion boost to the domestic uranium enrichment sector as part of efforts to reduce reliance on Russian nuclear fuel imports. The funding, requested by the White House, is included in a broad government funding bill unveiled Sunday.

With the House already approving the 2024 appropriations package containing this funding Wednesday, the bill now heads to the Senate for expected final passage by Friday.

You can read more on the matter here.

What’s going on?

• Canada’s Business Leaders Want Pension Funds to Invest More In Canadian Companies (theDeepDive)

• China Intensifies Push to ‘Delete America’ From Its Technology (WSJ)

• Bank of Canada worries a rate cut now could overheat the spring housing market (CBC)

• BC Affordable-Housing Condo Units Allegedly Sold to People Who Already Owned Homes (theDeepDive)

• Ship evacuated after first civilian fatalities in Houthis' Red Sea attacks (Reuters)

• Trudeau's spring budget has Canadian firms worried about new taxes (BNN)

• Not Funny: Just for Laughs Files for Creditor Protection, Cancels 2024 Festival (theDeepDive)

• Layoffs rise to the highest for any February since 2009 (CNBC)

• House Approves Bill That Boosts US Enriched Uranium Industry (theDeepDive)

What’s the latest?

• Mine Closure: The estimated cost of closing First Quantum's copper mine in Panama is $800 million, according to Trade and Industry Minister Jorge Rivera. The government is seeking alternative funding measures to avoid using state funds for the closure. The shutdown was ordered in December following protests for environmental protection and a court ruling against the mine's contract. The responsibility for covering closure costs is unclear, but the government has suggested First Quantum's local unit provide financial guarantees. Developing a closure plan may take 6-8 months, with the next president expected to complete it. The mine contributes about 5% to Panama's GDP, and its closure is anticipated to slow the country's growth to 2.5% in 2024, down from 7.5%, according to IMF data.

• Bank Run: New York Community Bancorp announced a 7% drop in deposits over the past month and a further reduction in its quarterly dividend, following a previous cut in January. This news comes despite the bank securing a $1 billion investment just a day earlier, led by a consortium including former U.S. Treasury Secretary Steven Mnuchin's firm. The investment and the appointment of ex-regulator Joseph Otting as CEO were part of efforts to stabilize the bank's finances after a challenging period, including a significant revision of its quarterly loss and a "material weakness" in internal controls.

• X: Elon Musk announced that his social media platform X, formerly known as Twitter, could soon receive a money transmitter license in New York, moving closer to offering payment features. Speaking at the Morgan Stanley conference, Musk mentioned that X might also get licensed in California within a month, with New York approval expected in a few months. Musk aims to transform X into an "everything app" similar to China's WeChat, allowing users to send money to each other

• GLP-1: Novo Nordisk surpassed Tesla in market valuation after announcing positive early trial data for a new obesity drug, amycretin. Shares rose over 8% to record highs, making Novo the 12th most valuable company globally. Investors are optimistic about Novo's pipeline beyond Wegovy. Since launching Wegovy in the U.S. in 2021, Novo's shares have more than tripled, making it Europe's most valuable listed company.

• Crypto: FTX and BlockFi, two bankrupt cryptocurrency companies, have reached a settlement regarding disputes from their 2022 collapses. FTX will pay BlockFi up to $874 million. The settlement, which needs approval from U.S. Bankruptcy Judge John Dorsey, includes a priority payment of $250 million to BlockFi, with the rest contingent on FTX's ability to repay its own customers. The two companies had a close relationship before a market crash exposed FTX's misuse of customer funds. FTX could pay BlockFi up to $689 million for loans provided by BlockFi's affiliate Alameda Research, with the first $250 million guaranteed.

Uranium is the place to be

The stock market and stuff

• Spain Imposes Three-Month Ban on Worldcoin Amid Privacy Concerns (theDeepDive)

• Canada's IPO drought reaches a full year with no end in sight (BNN)

• Novo valuation surpasses Tesla on experimental obesity drug data (Reuters)

• Discord to Offer Rewards for Gamers as CEO Considers IPO (Bloomberg)

• Reddit’s WallStreetBets Plans To Bet Against Reddit IPO (theDeepDive)

In the juniors

• Delta Resources Adds up to an Additional 3000 metres to Current Drill Program at Delta-1 in Thunder Bay, Ontario (JMN)

• Kiwetinohk Energy Corp. GAAP EPS of C$1.44 (SA)

• Orla Mining Drills Oxide Mineralization Outside Projected Open Pits at South Railroad Project in Nevada (JMN)

FULL DISCLOSURE: LNG Energy Group is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of LNG Energy Group. The author has been compensated to cover LNG Energy Group on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.