'Where's the Fuel Coming From?' - The Race to Secure URANIUM as Big Tech ALL IN

Key Concepts

• In Situ Recovery (ISR): A mining method used to recover uranium by dissolving it in place using a leaching solution, which is then pumped to the surface for processing.
• Nuclear Renaissance: The global and domestic shift toward re-adopting nuclear energy as a primary source of base-load power.
• 43-101 Technical Report: A document prepared according to Canadian securities laws that provides detailed information on a mineral project's resources and economic viability.
• Defense Production Act (DPA): U.S. legislation allowing the government to prioritize and incentivize domestic production of critical materials, including uranium, for national security and military needs.
• Base-load Power: The minimum level of demand on an electrical grid over a span of 24 hours, which nuclear energy provides reliably.
• Small Modular Reactors (SMRs): Advanced nuclear reactors that are smaller than conventional ones, offering more flexible deployment options.

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1. The Strategic Importance of Domestic Uranium

Janet Lee Sheriff, CEO of Verdera Energy, emphasizes that the U.S. has transitioned from being energy-independent in the 1980s (producing 50 million pounds of uranium annually) to being approximately 95% dependent on foreign supply.

• National Security: Domestic uranium is legally required for military applications, such as refurbishing nuclear submarines and maintaining warheads.
• Economic Stability: With nuclear energy providing a significant portion of the U.S. grid, domestic production is essential to mitigate rising electricity costs and ensure energy security.
• Market Shift: The industry is moving away from the post-Three Mile Island stigma, with younger generations and major tech companies (Microsoft, Google, Meta) now viewing nuclear as a necessary, affordable, and low-footprint energy source.

2. The Role of Tech Giants and Reactor Restarts

The recent regulatory waiver to restart the Three Mile Island nuclear plant to power Microsoft data centers signals a major paradigm shift.

• Infrastructure Needs: Sheriff compares the uranium industry to oil and gas, noting that while there is a push for enrichment and conversion facilities, the market has yet to fully focus on the "upstream" necessity: uranium extraction.
• Future Demand: As AI and SMRs grow, the demand for fuel will increase, necessitating a more robust domestic supply chain.

3. Verdera Energy’s Operational Strategy

Verdera Energy is positioning itself as a key player in the U.S. nuclear renaissance by focusing on assets in New Mexico.

• West Largo Project: The company has commenced a 43-101 technical report, expected by the end of 2026. The goal is to re-evaluate historic resources using modern, less conservative cutoff grades and expand exploration to the periphery of known deposits.
• Data Advantage: Verdera holds a proprietary database covering approximately 90% of privately held uranium data in New Mexico. This includes historical records from oil and gas companies that originally identified uranium deposits while drilling.
• Business Model: The company is not building a production team; instead, it focuses on development, permitting, and community engagement. They are open to joint ventures or acquisition by companies with existing production capabilities, such as Encore.

4. Community Engagement and "Nuclear in New Mexico"

Sheriff highlights the importance of the "Nuclear in New Mexico" conference, which brought together utilities, international trading houses, tribal leaders, and national labs.

• Addressing Legacy Issues: The conference aimed to acknowledge past environmental concerns while pivoting toward "ISR 2.0"—modern, safer extraction technologies developed by national labs like Los Alamos and Sandia.
• Permitting: Success in the U.S. depends on streamlining permitting processes, particularly in states like New Mexico, to match the efficiency seen in "agreement states" like Wyoming and Texas.

5. Market Outlook and Investment Perspective

Despite the long-term bullish outlook for nuclear energy, the uranium equity sector has remained volatile and relatively stagnant in 2026.

• Investor Sentiment: Sheriff notes that uranium prices have hovered around $85–$100, leading to "boredom" among investors who are currently chasing other sectors like tech IPOs.
• The Opportunity: With 88 million pounds of known and historic resources in New Mexico, Verdera Energy presents a significant value proposition at its current $50 million market cap, especially for investors who believe in the long-term necessity of the nuclear renaissance.

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Synthesis/Conclusion

The U.S. nuclear sector is at a critical juncture where national security, the AI-driven energy demand, and the need for base-load power are converging. Verdera Energy’s strategy relies on the premise that New Mexico is indispensable to the U.S. nuclear supply chain. By leveraging a massive proprietary database and focusing on ISR-amenable projects, the company aims to bridge the gap between historical resources and the future needs of the U.S. energy grid. The primary takeaway is that while the market currently lacks interest, the fundamental requirement for domestic uranium production is becoming an unavoidable reality for the next decade.