UEX and Uranium next week, month Well all I can say is we live in interesting times.. The world right now is not a boring place.. Geo political conflict with energy security at the forefront of many peoples thoughts. Before I go further I would like to acknowledge my worry for all of the Ukrainian people.. I hope and pray for a speedy solution to the conflict in their country.
The Uranium space is now in a real fragile state with many unknowns.. During the past bull market there was no supply shortage when Cigar lake flooded and the price ran hard to , around $137... With all of the instability of supply and the SPUT buying I wonder what the outcome will be??
Here are some questions I have no answers for but will influence the price .
1 SWU so with less supply of enrichment processing will underfeeding change to overfeeding.. Underfeeding is when the enricher's keep the extra tailings and spin them because they have extra free time and can extract the rest of the ore for a lower cost than they can sell it for.. BUT overfeeding is when they don't have the excess time and just extract what is contracted for and save the tailings for the future.. This means no excess supply from this source .. some say 15 million pounds at least from this source...
2 Strategic supply reserve in the USA.. Will this happen?? if so how much how soon??
3 Will Nato sanction other country's that support Russia?? Will that impact Kazakhstan ??
4 Are there enough mines to supply the shortfall that can be fast tracked.?
These are just a few thoughts.. So how will these impact UEX???? Well my thought is that the producers will move first , then nearer term producers then developers and explorers..
So if there is any positive news from the drilling, this will be good for the stock... At this time UEX should rise with the market and only outperform if the results are VERY positive..
My view of UEX is like it is an ETF of various projects under one roof.. So it is a balanced approach of near term with Wheeler river and more speculative with Christie lake and the others... And what about Orano?? With their partnerships in questionable jurisdictions do they start to look for stability at Shea creek??
UEX is a multifaceted complex resource with many opportunities and Cobalt.. Can management deliver? Some will say no.. If you don't believe they can you should sell now and board another ship.. If you do think they have a shot at it then you should buy..
None of this is investment advice and I DO NOT have a crystal ball, but it seams like things are coming to a turning point.. But I have thought that before.. Example, section 232 was supposed to be a inflection point.. It fizzled .. So is this the time it turns?? Lets look back in a couple of months and see where we are..
Good Luck to all of the longs..
DYODD