April 5th, 2016
Good Morning Everyone, without question the most controversial commodity we cover is uranium. Aside from gold, we can’t think of a metal that arouses so much passion, both pro and con.
After we recommended avoiding uranium in March of 2013, we frankly weren’t sure if or when we’d be back as Fukushima-induced fear, enrichment underfeeding, and an enormous supply overhang looked set to plague the industry indefinitely.
Though supply still outweighs demand, the global reactor fleet of 440 continues to grow with 66 under construction led by China. This remains one pillar of the bullish uranium thesis.
Another pillar concerns utility purchases of uranium. With utility contractual obligations set to roll off in the next couple of years, a new wave of demand is expected and with both spot and term prices so low, the incentive for increased exploration and development is not present. This holds up the possibility for higher uranium prices in the coming years and, we think, dictates that a closer look at the uranium sector is warranted.
This morning’s note looks not only at the basics of the uranium industry, but also explores its strengths and weaknesses along with salient issues investors should be thinking about as uranium appears set to remain an indispensable part of the global power mix.
As always, thank you for taking the time to consider our thoughts.
Chris
Click Here to Read the Complete Note
__________________________________________________________________________________
Upcoming Speaking Engagements:
Mike will be speaking at Mines & Money Hong Kong – April 5 – 7, 2016
Chris and Mike will be speaking at the SME Current Trends in Mining Finance Conference: Beyond Survival – Prosperity with the New Normal of Risk and Uncertainty in New York – April 24 – 27, 2016
Chris will be on a panel at the Metal Bulletin 8th Annual Lithium Supply and Markets Conference in cool and temperate Las Vegas, Nevada May 24 – 26, 2016
__________________________________________________________________________________
Recent Articles and Media Appearances:
Chris interviewed by Kitco on gold, Donald Trump, and lithium.
Recent video and audio interviews are archived and can be found here.
