Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Dated 20th Feb 2024
htTps://www.investing.com/news/commodities-news/goldman-hedge-funds-step-up-activity-in-physical-uranium-as-prices-spike-3307759
Investment banks Goldman Sachs and Macquarie as well as some hedge funds are positioning themselves to reap the benefits of a newly buoyant uranium sector as prices of the nuclear fuel ingredient spike.
and
With the headlines and positive momentum in nuclear more generally, hedge funds and other commodity investors are back in the (uranium) sector.
and
Goldman Sachs has started writing options on physical uranium for hedge funds, the first time it has created a derivative for the metal.
and
Goldman is largely dealing with financial clients like hedge funds while Macquarie's main focus is boosting trading and marketing output from miners, another source who dealt with both banks said, also declining to elaborate because the data is confidential
Agreed - if there was some issue with digging it out the ground in time to deliver they'd either renegotiate the contract (e.g. just delivery a bit later and YCA saves on storage costs), or buy some in the market.
All seems unnecessary to worry about IMO - although KAZ revised some targets they are still producing plenty enough to service this contract.
Wouldn't KAP have to buy on the spot market to make up the shortfall like Cameco have done. I guess this depends on the contract but if this is the case YCA could sell at spot to KAP to buy back a lot cheaper.
Thanks for the update to the NAV tracker to provide the "what if" scenario modelling the impact IF KAP were to fail to deliver in H1 2024.
It is reassuring to see the relatively low impact to NAV of 2.5% based on todays variables - spot, fx etc.
I suspect if KAP were not to deliver its obligation then the bullish impact on spot U price would more than offset the arithmetic impact on NAV of not delivering.
Numerco 10250/10500
Worth a read together with Quakes commentary in the thread
https://twitter.com/duediligenceguy/status/1756076856162365498?t=96KFu0mK06imVuqWPMMZvw&s=19
On the way up
Numerco 10000/10250
9950/10200
9900/10200
Https://www.fool.com.au/2024/02/09/why-are-asx-uranium-shares-getting-thumped-on-friday/
I cant see an optimistic Cameco actually dealing with he supply squeeze though - so I think its fine to hold.
9800/10200
John quakes on twitter talking of flywheel effect in reverse - hence prices dropped off
Been following Cameco and Sprott Uranium Miners ETF after the Cameco results as they fell sharply from open at 2:30 while Numeco had mid price of 103 which it stayed at for a time, now 99.7 so Numerco probably an hour or 2 behind.
9800/10150
Just arrived on holiday and can see shRes prices significantly down but spot seems unmoved. I cant find anything from Cameco, but did they announce good production figures or somerhing. Wondering about topping up.cheers
10100/10500
10100/10400
...but now the Bid too
10300/10600
Slipping back but just the Ask
10400/10600
Unfortunately not so good now
Numerco 10400/10800
A few interesting charts in the uranium sector -
www.metallic.media/uranium
Numerco 10500/10900
Incredible velocity
10500/10800