Yesterday Lightbridge Corp. (LTBR) announced a technological breakthrough in nuclear power. Lightbridge’s all-metal fuel technology could give a 30% increase in power output per reactor compared to reactors using standard oxide nuclear fuel. For a 1600MWe light water reactor this could mean another $250M/year (about $16B over the 60 year lifetime of a reactor).
The Lightbridge-designed all-metal fuel design would provide enhanced proliferation resistance and result in up to 23% less volume of used fuel per kilowatt-hour of electricity generated and is expected to have improved fuel operation compared to standard oxide fuel.
Lightbridge’s new technology could reduce both initial capital costs per megawatt and annual operating costs per kilowatt-hour of nuclear power, making it more competitive with other forms of electricity generation while contributing to a significant reduction of CO2 emissions.
LTBR stock soared on this announcement yesterday from $5.91 at the open to $9.49 at the close. As I wrote this, it was up an additional $.81 in after hours trading. The company fundamentals are sketchy on this stock. It is not currently profitable, but that may soon change. Regardless of the fundamentals, this stock may be due to surge upward for another day or two (perhaps another week or two). This is indeed a game changing technological advancement.
If you buy, you may wish to sell as it starts to pull back. It will take some time for the company to ease into profitability. It will take time for the U.S. and others to decide this may mean nuclear energy is more attractive. Eventually it will mean incrementally more nuclear power plants. The stock’s high last October was approx. $12. I look for it to exceed that price on this news. One caveat is that the market appears to be in a downtrend currently. More bad news today could cause most stocks to go down.
Good Luck trading.
Disclosure: No positions at this time