Accumulation Time - Huge Upside Potential

"The uranium market is in an interesting situation where the price is now sitting below the cost of production while demand is strengthening, setting up the stage for a significant change in uranium prices." - livewire

With lots of exciting prospects for the uranium market this year, I believe now is perfect accumulation time for stocks like Peninsula Energy who have limited downside and massive upside potential.


FA

Market cap - 61.7m
Shares - 233.7m
Cash - US$22.3m
Price-book - 0.58
52 week low - 22c

A uranium co with large reserves & strong mgmt team thats primed for a re rate. Has exposure in various ETFs including Global x. JORC of 53.5m lbs of U3O8 at the Lance project in the US. Also hard rock of 56.9m lbs eU3O8 at the South Africa project that mgmt are looking to divest at the right price (or if market turns significantly then could go to mine ???). Long term contracts with partners for sales up to 2030 and significantly reducing costs. Also, PEN's lenders, RCF and Pala, agree to extend maturity date on existing $17m loan facility with conversion price 40c - seems a confident move to me. With a reducing number of short positions, strong T20 and healthy broker activity, lots of arrows pointing in the right direction for PEN.


TA



Broker Activity
Seems convincing to me. Fair amount accumulation going on from the instos. Decent amount of selling from Morgan Stanley couple weeks ago, nothing from them since. The Rolling weeks activity looks bullish with retail doing most  of the selling.

For the rolling week:



From MTD (1/5/18):






Ownership
Ownership structure looks very strong with T20 holding 65%. Not much red considering uranium company. Some big names up near top. RCF increasing, PALA increasing, Global x Uranium Fund also adding. Blackrock is the only big seller. Further down past no. 20 Warwick Grigor is still holding a significant portion which is a big tick in my books too, holding around 400k through Gregorach, Far East and under his own name.




Uranium Price




GLOBAL X URANIUM ETF




all im0 / dyor