Section 232 is over. Thank god!

Section 232 is over. Thank god!

Many people in US markets panic sold on Friday due to leaked information in an AFR article before Trump had even made an announcement. It was true that no trade action will be taken, but there is more than 1 way to skin a cat. Although the petition has been rejected, Trump states "I agree with the Secretary that the United States uranium industry faces significant challenges in producing uranium domestically and that this IS AN ISSUE OF NATIONAL SECURITY."

However he does not believe that using the trade act is the correct way of dealing with the issue and as such has developed a working group of government departments with the sole purpose to "develop recommendations for REVIVING and EXPANDING domestic nuclear fuel production.".

This is an exceptionally bullish outcome for the uranium industry in both US and worldwide. It means that other actions will be taken to strengthen the entire US fuel cycle (not just the miners). This will potentially bode very well for companies like SLX. It also means that trade uncertainty is now gone and the world markets can restart immediately. This is evident from the 4% pop in spot price that was observed yesterday.

I suggest everyone keeps an eye on how the US media portrays this decision over the weekend as that will dictate what the market does next.

In the event that Australia follows the US markets blood bath next week, I will be buying the blood.

I expect a quick recovery from the US as the realisation of how bullish Trumps decision actually is and the positive aggression that will come through the spot price in the coming weeks as utilities scramble to buy while it is cheap.

Today we enter a new era in the Uranium industry. Exciting time ahead.

Q