Uranium
Uranium
Cameco (CCJ) shares have continued their winning streak and yesterday rose $0.72 (3.34%) to close above $22.29/share on higher than normal volume of 2.6 million shares. The story that those in the industry are telling is that Russian uranium supplies will be coming off of the market this year and that the current spot and long-term contract prices are no where near the levels needed to support new production. This means we need to see prices rise, and rise dramatically and that will benefit names with production such as Cameco. Even though Cameco will lose access to the Russian HEU resell program, they do open up a new high grade mine in the Athabasca Basin so this should be a wash in the mid-term. We are still believers (most certainly not to be confused with beliebers!) in the uranium story and think that the latest price action in Cameco and the juniors reinforces our thesis.
https://seekingalpha.com/article/1452931-5-commodity-stocks-moving-on-news?