Dramatic Supply/Demand Imbalance Forming
The uranium market is on the cusp of significant supply deficits that will not be able to meet rising nuclear power demand.
Capacity Reductions – The Cure for Low Prices, is Low Prices
Production costs far exceeding selling prices for many of the world’s uranium miners has led to an over 20% reduction in uranium mining production, driven by the world’s two largest uranium miners, Kazatomprom and Cameco.
Secondary sources of supply, driven by both political and economic reasons, have also been reduced.
Investor Apathy has led to Information Asymmetry
Underfollowed and Under-Owned by Institutional Investors.
A grueling multi-year bear market, during which the commodity price has decreased ~80% from its peak, has driven institutional investors and sell-side research away.
Significantly positive changes, led by supply destruction, have gone largely unnoticed by institutional capital, thereby creating a dramatic disconnect between improving fundamentals and company valuations.
Near-term catalysts exist that will drive institutional awareness and capital back into the sector.
Strong Nuclear Power Demand
Nuclear power is clean (carbon free), baseload (always available) and one of the safest forms of electricity generation.
More reactors (452) in 2018 than in any other time in history*
55 reactors under construction worldwide.*
151 planned and 335 proposed reactors globally*
*(Source: World Nuclear Association, October 2018)
Sachem Cove Partners, LLC was formed by Michael Alkin and Lloyd Harbor Capital Management, LLC to take advantage of a significant dislocation in the Uranium mining sector.
We are building the premier investment platform which deploys capital into a highly selective group of public equities and private financings in the Uranium sector.
Our investment process is driven by deep primary research and fundamental analysis which begins with a differentiated view on both supply and demand dynamics of the Uranium market.
Michael Alkin is Chief Investment Officer and Founder of Sachem Cove Partners, LLC. He leads the entirety of the investment process. Mike has over 20 years of hedge fund experience on long and short side with extensive short selling experience across many industries.
Prior to founding Sachem Cove, among his positions he was an analyst and partner for 7 years at Knott Partners. Before Knott, he worked at Walker Smith Capital, Zweig-DiMenna and Windsor Partners.
LLOYD HARBOR CAPITAL MANAGEMENT, LLC
Sachem Cove has a strategic partnership with Lloyd Harbor Capital Management, LLC.
Lloyd Harbor partners, and forms private investment vehicles, with domain experts in sectors generally characterized as being highly capital constrained and having barriers-to-entry either from real business advantages (tech-enabled processes, specialty sourcing etc) or significant regulation. They allocate capital to asymmetric investments with a significant probability of generating high, absolute, net returns, safely and consistently and with low correlation to traditional asset classes.
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