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The story is starting to get out now, the financial press: FT, Bloomberg, ZeroHedge are all starting to report on the opportunity and I am sure this will lead to more interest in what has so far been a very niche and under the radar sector.
Here are some important recent articles in the past week:
- 10th Sep - https://www.ft.com/content/624e3ac6-ffb0-49ee-959f-e59c27e96c80
- 9th Sep - https://www.zerohedge.com/markets/it-has-arrived-uranium-etf-sees-record-inflows-amid-retail-buying-frenzy-
japan-hints
- 8th Sep - https://www.bloomberg.com/news/articles/2021-09-08/uranium-surges-to-six-year-high-as-fund-buys-up-physical-supply
- 3rd Sep - https://www.fool.com/investing/2021/09/03/why-shares-of-uranium-miner-cameco-rocketed-24-thi/
- 2nd Sep - https://www.zerohedge.com/markets/bitcoin-opportunity-uranium
This level of publicity is not normal for uranium over the last decade and is an indication of where the sector could go in the coming years.
URNM is a far better way to gain exposure to uranium than URA. URNM is a pure play uranium ETF whereas URA is 70% I think. But I would still say that physical uranium has some of the best risk to reward, so a high allocation of physical uranium is a good idea.
Anyone else excited for the US open tomorrow? They have had their labour weekend with plenty of time to spread the word of uranium read up on the sector and do some due diligence. Logically the sector should be starting to pull back and I would welcome a pull back at this point, but I have my doubts. The uranium thesis is so compelling and the bear market has completely wrecked the supply side of the industry, depriving exploration, development and production for years.
The gasoline has been soaking the sector for years, the match (SPUT) has just been lit.
Gcl going vertical here this morning and no excitement here at all? UK PIs still sleeping on uranium.
In the shorter term I have no idea where the supply side uranium will come from. Most mothballed production will take a year or two to come back online to max output and all new mines won't be built and producing before 2024/2025 and even if we get all high price production coming online, there will be a long time before this market becomes balanced. YCA open Monday morning is going to be interesting.
Great to see some excitement on this board, I have never seen more than a handful of posts a day here. This uranium market has the potential to be really explosive and if you look at historic prices of uranium, there is potentially a long way to go yet.
@Forrest I totally agree that people shouldn't underestimate thorium, I have no doubt it will be used in the future. But it is a new novel technology and likely won't impact this current bull market in uranium.
For some great information regarding thorium, I will direct you to Brandon Munro's video on it. He is a a great commentator on the uranium sector as well as CEO of Bannmerman.
link: https://www.youtube.com/watch?v=s3O9gJI2200
SPUT opened up 13% on the US open. Huge volumes on CCJ NXE ect.
Big money has arrived.
Totally agree. Inflation has arrived and commodities + energy prices are increasing. With government debt levels at such high levels in the US and Europe they won't be able to raise rates the way they did in the 70s to combat inflation, because the governments won't be able to pay the interest to service the debt, with high interest rates. So with rates staying sub 4%, inflation will be here to stay. Uranium is a great hedge against this, with outsized gains if the sector takes off.
It is definitely interesting timing for his directors purchase, considering the longer than expected wait on drilling.
There is also a definite positive feedback loop. People invest in SPUT => SPUT buys physical >> physical uranium prices go up >> new highs are made that generate more interest >> more capital flows into SPUT.
Uranium is still obscure and unknown to most, especially retail. I am looking forward to the day that changes and mainstream capital flows into the sector, because there are such limited places for the capital to go. Congo River and a garden hose come to mind.
Nice 5 year high in physical uranium printed today in the US session at $34.62/lb
I was very tempted with buying more Kap during the recent lows, 23 was bargain territory but I am already overexposed to uranium as it is. I am sure plenty of other took advantage though.
It will be interesting to see if physical uranium crosses $34.20 this upcoming week/month. If it breaks this level, it is a new 5 year high in physical uranium and should bring some renewed interest in the space.
Up 10% for a major producer is impressive to see. Kazatomprom is looking good going forward. What are peoples targets/timeline outlooks for Kazatomprom?
Nice to see a recent video of Jonathan Davis not only explaining the uranium narrative, but highlighting that GCL is the only uranium fund outside of North America/Canada. He goes onto recommending GCL as a way to gain diversified exposure to the uranium market.
The full video is very interesting, but the uranium specific commentary starts on 50:14.
link: https://www.youtube.com/watch?v=F96Cd3m-dXM&t=3014s
With the big moves over in the Canadian uranium plays such as Nexgen and Cameco that GCL have big holdings in, I thought it was only a matter of time before GCL was trading back above 40. Well done to those that we able to hoover up shares below 40, there is a chance it may not trade below 40 again.
This is also my viewpoint @Taverham. If they have the modelling already carried out, it can allows them to plug in results from exploration as and when they come in. The modelling can also feedback to them where they can get the most bang for their buck in exploration and where they need to concentrate exploration efforts to maximise project economics.
YCA looking strong, not much further to go before we are at an ATH for YCA with only blue sky above us.
Really interesting interview with Justin Huhn from Uranium Insider posted today, including in-depth details about the Sprott Physical Uranium Trust and it's "at the market" issuance capability in the future.
link: https://silverchartistreport.com/ui-promo_public-twitter1627263717307
I am no expert, with little understanding of the uranium market compared to some. But I do know that the longer the bear market, the more explosive the bull market when it finally arrives and there has been a brutal bear market in uranium since 2011, wiping out many dedicated uranium investors. I also recognise that the world truly wants to decarbonise it's energy production, the only reliable source of zero-carbon baseload energy is uranium, which it will need to offset the unreliable zero-carbon energy sources of solar and wind, if the world truly wants to decarbonise.