Disconnect, page-36

Hi Guys,

The Japanese Restarts is the Rick Rule narrative and he has been on about this for sometime.

However, like in early 2016 when he missed the gold sector's initial move, I think RR is missing something here too (with all due respect).

The current driver is not 'real' demand from things like the Japanese restarts - which is happening and is inevitable - but instead the demand that is coming form the financial sector and primary producers who have shut in production as per Goerhing and Rozenberg. From their anecdotes the Financial Sector is very aware of the inevitability of the U price rebound to come with many early stage entries already happening (e.g. YCA) and many enquiries being fielded by G&R.

I think that the move is underway (despite the current painful downdraft in miners) and if we didn't have general market liquidity jitters, the U sector would be marching higher.

As it is, spot U is continuing to move higher (I am heavily exposed) in a VERY low vol, near linear manner. I anticipate this to continue and, at some point (well before all Japanese reactors are once again operational) the miners will respond.

PDN is dogs-balls a value play here and now due to the pain suffered by former PDN equity and debt holders. PDN's working capital is sufficient, IMO, to keep the lights on until the sector turnaround plays out. 16.5c is value for money.

Cheers
John