Oklo is another modular / small nuclear reactor maker, calling them Aurora Powerhouses.
But, it's not trying to sell reactors, it's trying to sell long-term electricity contracts, maintaining ownership of the plants.
We’re talking recurring, predictable revenue yo. Not just selling equipment.
Obviously, AI data centers are at play here. That’s a big tailwind.
Oklo has already signed major agreements, e.g. with Switch for 12 GW through to 2044.
Just had a major regulatory hurdle overcome, NRC (Nuclear Regulatory Commission) just approved Oklo’s Principal Design Criteria for Aurora. Reactors still aren’t fully licensed / approved, but this has a significant positive impact on uncertainty.
Moving to cash, it is sitting on ~$1.6B and ~$600m marketable equities, so nice runway.
Already reached partnerships with large players, including NVDA and META, lending credibility.
But….
Revenue is still essentially 0. In fact a $33m net loss was posted.
No Oklo commercial powerplants are operating yet. This nuclear industry is famous for delays, cost overruns, etc.
Regulation wise, Oklo are still yet to get full approval, and NRC has denied a license application before (but Oklo is open to reapply).
Market cap is ~$11b.
Announcement and partnerships are exciting, but don’t equal concrete cashflow / profit.
Checklist:
- Do I understand the company? Sort of.
- Does it have predictable earnings? No, but potentially in the future
- Does it have a durable moat? Unproven, but possible.
- Is management credible? Appears so, but obviously still waiting on proof.
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