No doubt about it the resource is massive, that's not what's keeping the SP down.
It's: 1. A WA ban in place preventing taking that stuff out of the ground. 2. No clear pathway to lift that ban (beyond 'sentiment is improving' re how nuclear energy is viewed in Australia.)
I just read through a recent 1AE presentation that called out Coles Hill as another mega uranium resource.. unfortunately it's in Virginia (US) where a ban has been in place since 1982 (and upheld in 2021 by the supreme court). That is to say investors may be years away from seeing any meaningful SP increase post ban reversal.
Of course if/when the ban is lifted- or rumours to that effect are spread- expect an immediate 5x re-rate as the new base with further potential to 10-20x depending on macro factors and funding deals in following years.
I have a small position and continue to throw some $ at it at local lows- most recently at $0.08.
CXU Price at posting:
1.0¢ Sentiment: Buy Disclosure: Held
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