Marin Katusa (Casey Research) on UraniumThe last half of the article discusses Uranium..
.MARIN KATUSA: The trends driving the market are still in place. Growth in China will continue. Investors should be invested in either the highest-grade deposits, which are in the Athabasca Basin in Canada, or the lowest-cost producers, such as the ones that have in situ recovery (ISR) production in the U.S. MK: I focus more on the long-term price because more than 90% of the uranium traded globally is based on the long-term price. The spot price, which everybody is so worried about, makes up between 5–8% of the uranium traded. That’s irrelevant. Even in a decreasing uranium market, you’re looking at prices north of 40% higher for the long-term price—very bullish for uranium long term.
It’s funny because the oil markets are currently in backwardation, meaning that future oil prices are lower than current prices, and the opposite is true for uranium, yet the investors are avoiding the uranium sector like the plague. They will eventually come back, and at that time, you will want to sell your stocks. Uranium is a perfect contrarian investment right now.
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