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)
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