RE:RE:RE:tariff...No way to Canada, Aus, NamibiaI am sure Canada will not be exempt. but the US industry did not ask for tariffs...that is an assumption on the part of many that the request will be implemeted by tariff - it won't because that will not create the 25% supply requirement that US producers want.. Presently Canada supplies over 25% of US requirements...mostly from Cameco. We are the biggest supplier to the US in fact. So if US producers expand production from the current 5% of demand to 25% demand (a five fold increase...and almost impossible to do in the short term,) then 20% of current supply from other nations will be curtailed. Since the Kazakhs supply about 24% my guess is that the administration will find some way of forcing US utilities not to import Uranium from selected countries.
I cannot see tariffs being the method they would choose because it will not acheive the result they want.
Of course the negative effect on Uranium juniors in Canada is a knee-jerk reaction and a wonderful buying opportunity. They do not produce anything yet and sell ZERO uranium to the US so what conceivable effect can that have on the bottom line of a Jun ior company whjen (a) it is not a producer and (b) it does not have a bottom line.This is a wonderful example of how the "market" gets it wrong. Juniors are purchased for their POTENTIAL not because they make money now. None of them do so how can tariffs or any other mechanism affect a company that doesn't yet produce Uranium.
The real stupidity (and why this is a golden opportunity) is this. The market growth in Uranium demand is NOT in the USA. Only a couple of reactors are being built there. That means <2% of new builds are in the States. The rest of them (98%) are not. So sales to the future USA nuclear fleet are likely to stay static or decrease (likely decrease). So future sales of U3O8 will be to new builds outside the USA and has almost no impact on the future viability of Junior miners.
I love it when the market does this. It has already grossly mispriced Uranium stocks and then does it again for reasons which are obviously wrong. The supply shortage is still coming around late 2020 and the market just gave you a discount on those companies that will profit from that.
Sounds like a time to load up to me. But your choice entirely. I will gl;adly buy what others feel they need to discard.
Malcolm