logo-loader

In the news: The Alchemist, Amani Gold & Sula Iron and Gold

no_picture_pai.jpg

In the news: The Alchemist, Amani Gold & Sula Iron and Gold

FROM THE BROKING DESK

We have our latest issue of The Alchemist out, focusing this time on uranium. In January 2017 we finally saw a significant pick-up in spot market uranium prices. This commodity has been on a downward trend since a 2007 peak of US$136.22/lb; the current price sits at US$25.50/lb, a fall of 81% from there. Increasing supply, the devastating Japanese tsunami of March 2011 and advances in alternative energy supply continue to plague the industry. We look at these concerns and whether the recent spike in uranium interest is signalling the bottom of the market by providing an update on the current supply and demand dynamics, counterbalanced by market perceptions and a look into investor activity.

In summary, we conclude that the spot price rise was a reaction to a low-cost operating company choosing to keep ‘pounds in the ground’ rather than continuing to oversupply the market. It might not be sustained. Investment in uranium should be approached via a ‘preparation for growth’ strategy; as and when interest returns to the market due to higher demand, transactions are likely to attract significant premiums for good assets.

 

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Admedus Ltd proud to unveil its valves publicly for the first time in London

Admedus Ltd's (ASX:AHZ) CEO Wayne Paterson caught up with Proactive's Andrew Scott while in London. The firm recently made what's been described as a transformational move to sell off its CardioCel® and VascuCel® patch business. Paterson says the focus is now firmly on the Adapt...

16 hours, 19 minutes ago