Uranium, like buying oil at $20 a barrel, page-14

Sorry mate, unfortunately I have no idea when the trend will turn but I do know that sentiment in this sector is close to an all time low although there are lots of signs that demand for uranium is almost certain to rise in the near future with a push decarbonise energy production.

There are very few if any company’s that can make money mining and selling uranium at close to $20.00 a pound so like oil at $20 a barrel it may be profitable for a few low cost producers to keep pumping but there is probably not enough margin for them to increase reserves through exploration or acquisitions, this should eventually lead to a reduction in supply and higher prices providing demand is stable or growing.

Perhaps it will be a few years before this plays out in uranium but I am happy to be accumulating some miners at this point in time in anticipation of higher prices.

All in my opinion, DYOR