Scott Melbye is a 37-year veteran of the nuclear energy industry having held leadership positions in major Uranium mining companies […]

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Scott Melbye is a 37-year veteran of the nuclear energy industry having held leadership positions in major Uranium mining companies and various industry organizations. He also currently serves as President, Chief Executive Officer and a director of Uranium Royalty Corp., and as Advisor to the Nuclear Engineering Program at the Colorado School of Mines. He recently served as Vice President Commercial for Uranium Participation Corporation (now Sprott Physical Uranium Trust), and Advisor to the CEO of Kazatomprom, the world’s largest Uranium producer in Kazakhstan. Through June 2014, Scott Melbye was Executive Vice President, Marketing for Uranium One, responsible for global Uranium sales activities.

Prior to this, he spent 22 years with the Cameco Group of companies, both in the Saskatoon head office and with their U.S. subsidiaries. He most recently served as President of Cameco Inc., the subsidiary responsible for global marketing and trading activities with annual sales exceeding 30 million pounds U3O8. Scott Melbye is President of the Uranium Producers of America and a past Chair of the Board of Governors of the World Nuclear Fuel Market. Scott received a Bachelor of Science in Business Administration with specialization in International Business from Arizona State University in 1984.

 

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The Opportunity of Investing in Uranium with Scott Melbye

 

Brett:

I’m excited about our next guest. He is the chief executive officer and President and Director of Uranium Royalty Corp. He’s been a director of the company since 2017. has been also the chief executive officer since October 2019. He has over 37 years of experience in the nuclear energy industry and has held leadership positions as held leadership positions in various Uranium mining companies and industry organizations, and so much more, please welcome to show with me, Scott Melbye. Scott, how are you doing?

Scott:

Brett, it’s great to be here with your viewer’s listeners and talk about nuclear energy and how it fits in in the global energy mix today.

Brett:

Beautiful and for our listeners to get to know you for the first time, would you give us a little bit more about your story and your current focus?

Scott:

I’ve been very fortunate to have spent my entire career 37 years today in the nuclear energy and Uranium industry. Everything from brokering and trading Uranium to procuring Uranium fuel for nuclear power plants in Arizona. But the bulk of my career has been with your own companies including three of the four largest Uranium mining companies in the world chemical Corporation and Canada. Kazatomprom, the Kazakh national Uranium company and Uranium One the famous Uranium nuclear fuel cycle company. But lately, in the last six, seven years, I’ve really been focused on two entrepreneurial endeavours that have been growing Uranium Energy Corp, which is a major investor in Uranium Royalty Corp. One is a mining development and mining company out of Texas, with operations in Texas and Wyoming. Uranium Royalty Corp. is a global royalty and streaming company, which is much more like an ETF that invests in other people’s mind developments and provides that multi-exposure to investors. Both are pure plays in the Uranium story, just two different ways to get there.

Brett:

It’s gonna be really fascinating topic, I love bringing on industry experts like yourself, especially something that’s a little bit not as mainstream. We’re gonna be diving all things today about the opportunity of investing in Uranium. But before we go there, Scott, I do want to take one other step back, and I want you to go back maybe to your university days, or your college days. I believe we’ve all been given certain gifts in this life, and they’ve been given to us to be a blessing and help to others. Some people call them strengths, some people call them superpowers. I’m curious, what are those one or two things or gifts that you believe you were given? How does that help how you help and bless people today?

Scott:

I think it’s a blessing, really, for anyone in, in there, in their careers to passion about something and really be able to focus on that. Some people will find these passions early in life, some people find them late as really getting into the resource business. At the time, I didn’t know if that would be in gold, or silver, copper, oil and gas, or Uranium, but I just knew I wanted to be in an industry like that, and focused, all of my sort of educational background and experiences around that.it’s really kind of gratifying now to look 37 years later and to have really had a fulfilling career in the Uranium industry of all industries. Not exactly a mainstream career, but again, I would just encourage people, to really follow those passions, whatever it is, and focus all their energy on it, nothing comes easy. The rewards go to those who really work hard and make it happen. Again, it’s been an interesting time, but I have to say these are probably the most exciting times that I’ve had in my career for a number of reasons, which I’m sure will we’ll discuss.

Brett:

Some passion and focus. The ability to be very passionate about what you do and the education behind it, and then very focused on that industry absolutely love it. Let’s dive right into the topic. What’s the biggest secret Scott, in regards to investing in Uranium?

Scott:

The key to investing in Uranium is very similar to investing in mineral commodities and resources. It’s really focusing on the supply and demand fundamentals. It’s one of the things that I like about the resource industries, you can actually look at the demand for whether it’s copper, gold, Uranium, you could also look into the mind production and the secondary sources of supply and really come up with a thoughtful forecast of where the commodity is heading. Uranium is probably in one of the most ideal situations right now. In that, we went through a very difficult period after Fukushima, which impacted both supply and demand. On the demand side, we saw Germany move away from nuclear power.

We saw Japan shut down reactors and now slowly restarting them. But something amazing has happened since those times where this whole drive to carbon-free, clean energy has really favoured nuclear power in a way that I haven’t seen in my career. So we’re seeing growth in nuclear power, about two and a half 3% annual growth. We’ve had 58 reactors online around the world in the last eight years. Now a new generation of small modular and advanced reactors like Bill Gates is building and Wyoming is really, really hitting this growth story for nuclear energy today. Then on the supply side, because we went through a difficult market with low Uranium prices, Uranium production has lagged Uranium consumption globally, by about 60 million pounds a year, we use about 190 million pounds of Uranium to generate electricity and nuclear power plants around the world.

Production has been coming in well below that for the last four or five years. We have a commodity squeeze going on right now and some other developments in the near term market where we’ve seen speculative investments like the Sprott Physical Uranium trust coming in and buying upwards of $3.4 billion of Uranium off the open market if you’re old enough to remember the bunker hunt in their attempt to corner the silver market. Well, this is much more thought, deep, deeper pockets, attempt to do to really not Uranium market, but really providing them with the physical Uranium commodity. That is, in turn, driving wonderful returns in the Uranium equities. We have just an all-around great story in the Uranium thesis.

Brett:

Focusing on the supply and demand fundamentals, I think I caught that first part, understanding the nuances of where the need is and where the markets going. Investing, perhaps with folks like yourself who are doing this on a very intimate focus level, I think is so far what I’ve gleaned from that. Why is it? I mean, maybe it’s not. But it seems like something like this is not as well known to let’s say, the average investor or the real estate investor, or the entrepreneur, business owner, perhaps the person is not as familiar or as comfortable in the stock market. Like, could you kind of just talk a little bit about how Uranium and what you guys are doing and how it fits into perhaps a good balanced portfolio?

Scott:

Well, I think, Uranium is probably the best, the biggest untold story around in that, in the United States, today, we get 20% of our electricity from nuclear power, but it is a full 55% of our carbon-free energy. That’s twice the contribution of wind and solar. We’ve always known that of nuclear energy and its resilience. For example, nuclear energy is clean in terms of, emissions is wind and solar. It’s as safe as wind and solar, which is surprising. But if you look at the hard data, over the last 60 years, nuclear energy is perhaps the safest form of energy generating we differ from renewables in that we produce energy 95% of the time, renewables only run its best 25 to 35% of the time. You’re going to have to figure as a society, how you’re going to get that other 70% of your energy supplies and if policymakers are making it very difficult on oil and gas, gas and coal, we really have few options to turn to.

That’s what we’re seeing is Nuclear energy is really into the headlines. It helps cop 26, the big climate change conference in Glasgow, where the climate change community is almost an elective into the realization that they’ve been doing this for 26 years, and basically have nothing to show for it in terms of carbon emissions, I think worldwide coal will use will be at a relevance around the world. When people look at nuclear power in that light, in that context, resilient, 24/7 power really is coming more widely. Now investors, whether they’re retail, l, investors or Institute and especially those investing in clean energy, sustainable investments, ESG investments, nuclear is now becoming very quickly accepted alongside investments in wind, solar and battery type investments. that’s a very new, new situation, I would say, just in the last five years, that nuclear has been considered clean and sustainable, even though the facts have been it’s always been. I think we’re seeing a lot of investor interest, and both institutional and retail coming into the space these days.

Brett:

Those are some staggering stats, 50% of all the carbon-free energy is coming from it sounds like nuclear power. Yet, it’s only it only, we’re only using me, it’s only 20% of the total amount,? And so in other words, if we can exponentially increase that 20%, to say, even 30, or 40, or 50, or 60. We’re gonna see leaps and bounds of exponential carbon-free energy. Is that a fair summary so far on that piece?

Scott:

We’re now seeing the next generation of small modular reactors. These are not the 1600 megawatt massive reactors that are going up around the world. These are the 100 200 megawatt reactors that can be built in factories shipped on site. If people are familiar with the nuclear navy or aircraft carriers, and submarines, they all run on small modular reactors and have done so safely since the 1950s. Well, now those are being sited in places like Idaho or Wyoming, or in the UK, where Rolls Royce is rolling out 16 small modular reactors throughout the UK as a scalable, clean energy way to provide electricity to the grid. Again, the growth is not just the reactors that are already operating in the United States, or even under construction around the world, another 51 are under construction presently, we’re seeing this next generation.

If you need to get some more information on that look at what Bill Gates is doing with TerraPower in the state of Wyoming, where Warren Buffett’s electric utility company is buying one of these modular reactors to replace a coal-fired power plant in southwestern Wyoming near Kemmerer. A great example of how this energy transition can be done in a positive way because impact this is a very traumatic transition to a greener energy economy.no one ever said being green is easy.it’s not. And, if we, though can replace some of those last coal-fired jobs in the nuclear energy and Uranium industry in Wyoming, that’s a better solution than just saying, well, they can make solar panels or make windmills which, frankly, are all made in other countries like China. We have a great story to tell. The Uranium market is undersupplied because of the low prices which have now only begun to increase we’ve reached nine-year highs in the Uranium market. Again, spurred on by some of the speculative investment in the commodity itself by Sprott physical Uranium trust, and the need for utilities electric utility companies have been quite complacent about low Uranium prices and haven’t been contracting.

These would be companies like Duke Power, epsilon Entergy, Dominion, which may be your local power company that has a nuclear power plant. They’ve been quite content to buy cheap Uranium off of the spot in the near term market but new cycles emerging where they’re gonna have to sign new long term contracts. The problem challenge is that there hasn’t been a lot of incentive for Uranium mining companies to get that capacity position and in place to meet the demand. Again, advice on investing in Uranium is to look for those companies that have the resources in good jurisdictions that have the management teams that know how to mine and develop Uranium and have the customer relationships and get these mines into production. With Uranium prices that are really on the move as we speak.

 

The Opportunity of Investing in Uranium with Scott Melbye

The Opportunity of Investing in Uranium: “I would just encourage people, to really follow those passions, whatever it is, and focus all their energy on it, nothing comes easy. The rewards go to those who really work hard and make it happen.” – Scott Melbye

 

Brett:

That’s very fascinating and thought-provoking on so many levels. I do want to focus now on an investor who’s listening to this, they can be a high net worth investor on Earth, they need to be an accredited investor. These are the steps to be able to take they say, I like what he’s saying, I see the future for the new healer and for the need for it. I feel like I’d want to put in an investment. What would be the steps? Are they working with their financial advisor? Are they going to UraniumRoyalty.com? Scott, kind of work us through how someone might actually invest into what you’re talking about?

Scott:

Uranium Royalty, we are. We listed we launched publicly two years ago on the Toronto Stock Exchange. But a really significant development for us was to list on the NASDAQ earlier this year. We’re the only pure Uranium company listed on the NASDAQ today. We’re a publicly traded equity. Its ticker symbol is UROY on the NASDAQ UEC, our sister company in Uranium mining and development is trading under UEC on the New York Stock Exchange, and these are companies like UEC is one of the highest has the greatest liquidity and trading volume in the Uranium space, trading about seven 8 million shares a day on a company that’s now worth about a billion dollars and then who you are sees reached a market cap of about 400 million in a very short two year period.

These are companies that you can invest in the difference between Uranium royalty is if you want a diversified, sort of ETF approach where we are, we’re Uranium experts, we spent our entire careers in Uranium we’re going out and doing the due diligence on potential offers and miners of brainiac Securing royalties on their minds and allowing investors to benefit from that portfolio. Uranium Energy Corp has the direct leverage to the Uranium story as a producer, developer miner of Uranium into the best jurisdictions in the world, in Wyoming.South Texas. Were in the news recently, in that we acquired the Wyoming Uranium assets of Uranium One, the famous Russian company that was lit and foundation and that chapter in that company’s history goodnesses we bought it back out of Russia hands into American ownership and developing on two platforms. But these are two publicly traded companies in the space and give really excellent exposure to Uranium and nuclear energy storage.

Brett:

UROY the ETF version, and then UEC for the direct version? You can go to UraniumRoyalty.com to UraniumRoyalty.com to connect with Scott Melbye and the company to learn more. That being said, Scott, are you ready for the shift to the Capital Gains Tax Solution section of the show?

Scott:

Yes, absolutely.

Brett:

All right. I know I’m expecting to be a tax professional or anything like that. Who knows. And, and we’re just talking about some challenges that ultra-high net worth people face with public or private stock Cryptocurrency, Gold, Uranium, perhaps it’s subject to capital gains tax when you buy and then you go to sell,? So all of these things are some of the challenges that our clients and our listeners are trying to solve. I’m curious, Scott, what’s the biggest frustration that you’ve seen? When it comes to selling highly appreciated assets? The capital gains tax deferral that’s associated with it?

Scott:

Well, listen, capital gains tax, I mean, this is a good problem to have, we hope that all of our investments are gaining and capital appreciation. In Uranium space, we’ve seen already today, we’re probably in the first or second inning of this Uranium bull market that we’re in, but we’ve already seen UEC is up 140%, URC, up 300% year to date. It is a real concern. I think it is important, I think a lot of us, maybe good investors, can pick good companies best and seize returns. But I think you really do need to have, sometimes we neglect tax advice on how to keep more of what we’re making, it doesn’t all have to go out the door to governments that are compensating that wealth. I would encourage you to engage experts and I think by the very fact that you’re tuned into this program, you’re paying attention to that that will provide will provide the problem for you to solve by giving you those capital gains, which is a good problem to have.

Brett:

Appreciate this guy. 140% of that’s some great numbers there. It is I actually had Kevin Harrington from Shark Tank on my show and he goes Brett, I bought a stock at 20 Five cents and it became a part of the board and part of the company took an equity share, and the stock went up to like $25 or $27 a share. He was you’re telling me there’s a way to defer capital gains tax on the sale of public stock? Yes, you can. It’s called a Deferred Sales Trust. For our listeners who are listening. If you’ve had some huge gains in the public stock, our minimum is $1 million net proceeds $1 million gain, you can sell high and you can diversify into multiple assets, liquid investments, and you can go back into real estate. It’s actually a beautiful, beautiful way to sell high and diversify. You can learn more about that at CapitalGainsTaxSolutions.com. That’s CapitalGainsTaxSolutions.com. That being said, Scott, are you ready for the lightning round?

Scott:

Yes, absolutely.

Brett:

All right, knowing what you know now if you can go back to your 25-year-old self, what’s the one golden nugget you’d make sure to tell yourself to do?

Scott:

No regrets about the industry that I selected. But if I was 25 today and going into it, I would if I had engineering, aptitude, I would go into small modular and advanced reactors because I think it would be an incredible next 50 years and then industry.

 

The Opportunity of Investing in Uranium with Scott MelbyeBrett:

Question number two, what’s the one book you’ve recommended or gifted the most in the past year?

Scott:

I’m a little biased. It’s Clinton Cash. It’s the story of the Uranium one and other Clinton stories. Then the follow up to that is a Seamus Bruner & Jones Solomon book called Fallout. Again, it kind of dives further into the Clinton story and how it kind of intersected into the Uranium industry. Not exactly mainstream books. But given a few of those out to friends and clients,

 

Brett:

What was the biggest aha moment when you read those books like, if people knew what was going on behind the scenes, something that really sticks out for you there?

Scott:

I guess I’m shocked at how much corruption goes on. Even in a country like the United States, I think we all think that we hold ourselves to a higher standard. You should hear some people say, Oh, don’t be naive. That’s how the world works. I’d like to think that, we do hold a higher standard in the United States and don’t do the same things that you see, and Russia or China or Venezuela or other places. I guess it’s a little bit of a disturbing aha moment. But hopefully, we, as a country and nation, and individuals, all choose the ethical right path instead of going down the dark side.

Brett:

It’s so true. Everything rises and falls on leadership,.when we got a leadership crisis going on right now, I think in the world in so many ways, and so it’s a big challenge. Next question, what are you most curious about right now?

Scott:

I’m curious. Well, I’m curious about, I’m worried about geopolitical things. Frankly, I see what’s happening in Ukraine, I see what’s happening in Taiwan and the South China Sea. I struggle with this, because I think on many levels, we should be trading partners, with all countries, including Russia, and China would much better be doing business together than at war with each other. But I really am concerned that we’re going into a period here, that could be a pretty volatile and violent period globally. On a human level, that concerns me, and I’m curious as to how that plays out as investors, I think, that’s got to factor into our decision making in the kind of companies or asset classes that we go into right now.

Brett:

Second, the last question, what’s the number one leadership quote, or theme that you strive to live by?

Scott:

I just, that’s a tough one. I just again, back to your original comment, believe in yourself and follow your passions. Along the line, there’ll be a lot of people that will tell you why you can’t do it, or why something can’t be done, nothing infuriates me more, and I still see it to this day. Even in my industry. When I say people, I hear people say. Well, we tried that before it didn’t work, or it was too expensive, or it was too hard. I go listen, if it’s too hard, then get out of the way we need to find people in our industries and in our lives, that are willing to put the effort into making it happen, whether that’s hard work, or investment, or all the above. I just I’m a very positive power, positive thinking and really focus, passion, the effort to make things achieve the things that we’re striving for.

Brett:

Thank you for sharing that it’s really inspiring. The last question, after all, is your success helping all the companies you’ve helped to build and helping to create even more education and more of a movement for Uranium and nuclear power. How do you stay centred in your values? And how do you stay encouraged to charge to reach new heights?

Scott:

I think if you’re a spiritual person, you’ve got to remember that, we don’t do all of this on our own I rely on my faith and the strengths that I get are from above. That’s something that’s important to me to others that may be other things that keep them grounded. But I think it’s important to have a focus on faith family, and things that you know, I just returned from a trip to Mexico and I remember seeing families in the park with very few monetary things to their net worth was probably not very big. But I’m didn’t see anyone happier in their lives than then enjoying their families and, and a barbecue in the park in Mexico. Sometimes I think we have to remember, yeah, it’s important to provide for our families and create net worth and all that. But let’s not forget, there are other things in our lives that are, are perhaps more important, and we all have those. We just sometimes lose sight of it.

Brett:

Scott Melbye, I want to thank you for the show, I know our listeners and myself are better for it. I want to encourage you to keep using the gifts of your focus and your passion for an industry that needs needs needs more attention and more political support. More everyone’s support right for safe clean nuclear the energy that I mean, I think about the Texas crisis, and what happened there and so many things that are relying on foreign powers right for oil or anything else, if we can move towards something that’s safer and cleaner and better good for the environment, and can provide power for us right so I encourage everybody to go to UraniumRoyalty.com and get with Scott and consider maybe investing if you feel that’s appropriate. Thank you, Scott, for being on the show.

I also want to thank our listeners for listening to another episode of the Capital Gains Tax Solutions Podcast, where we believe most high net worth individuals and those who helped them they struggled clarifying their capital gains tax deferral options not having a clear plan is the enemy and using a proven tax referral strategy such as the Deferred Sales Trust is the best way for you to sell highly appreciated public stock private stock, cryptocurrencies, businesses, real estate, and save a failed 1031 Exchange, you can go to CapitalGainsTaxSolutions.com. To learn more about that. I also want to invite you and your CPA and anyone else who’s wanting to learn to our free mastermind, we’re calling this DST University. We’re focused on cryptocurrency right now, and really making the Deferred Sales Trust simple. If you go to CapitalGainsTaxSolutions.com. You can click on Register for this Free Mastermind every Friday at 10 am Pacific Standard Time, 1 pm Eastern time, so you can be empowered with the Deferred Sales Trust and not ever have to feel trapped by capital gains tax when selling assets ever again. We’re also streaming eXpertCRESecrets.com. We appreciate all the listeners out there. Please share this with someone that could help and inspire today. We so appreciate everyone out there and we wish you a great day.

 

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About Scott Melbye

 

The Opportunity of Investing in Uranium with Scott MelbyeScott Melbye is a 37-year veteran of the nuclear energy industry having held leadership positions in major Uranium mining companies and various industry organizations. He also currently serves as President, Chief Executive Officer and a director of Uranium Royalty Corp., and as Advisor to the Nuclear Engineering Program at the Colorado School of Mines. He recently served as Vice President Commercial for Uranium Participation Corporation (now Sprott Physical Uranium Trust), and Advisor to the CEO of Kazatomprom, the world’s largest Uranium producer in Kazakhstan. Through June 2014, Scott Melbye was Executive Vice President, Marketing for Uranium One, responsible for global Uranium sales activities.

Prior to this, he spent 22 years with the Cameco Group of companies, both in the Saskatoon head office and with their U.S. subsidiaries. He most recently served as President of Cameco Inc., the subsidiary responsible for global marketing and trading activities with annual sales exceeding 30 million pounds U3O8. Scott Melbye is President of the Uranium Producers of America and a past Chair of the Board of Governors of the World Nuclear Fuel Market. Scott received a Bachelor of Science in Business Administration with specialization in International Business from Arizona State University in 1984.

 

 

 

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