Uranium and Gold – Very Different Reasons For A Bounce
Sean Brodrick, the Natural Resource Analysts at Weiss Ratings shares his thoughts on the uranium and gold markets. In the case of Uranium there have been some news events that continue to be bullish for the long term and further show just how tough it is to operate as a producer at the current price levels. For gold Sean points to how washed out the sector is as a reason for a bounce. The questions is how much further can it drop before that bounce comes?
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Thanks for this.
On uranium inventory, I’ve listened to many discussions of this and it looks like there’s a misconception.
There may be 3 years of inventory in the uranium “system”, but there is only about ONE year of usable inventory. You can’t count that owned by governments, investment vehicles like YellowCake, etc., research institutions, etc. Even Japan’s inventory which so many freaked out about, is off limits as they’re restarting their reactors. There’s only around 1 year of usable inventory in the system (of course some utilities may have more/ less).
Plunger has a $4.35 target price on UUUU based on an inverse head and shoulder pattern that the stock recently broke out of.
nice
Keep the uranium interviews up! Thanks as always Cory