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benoit2828

26 Posts.

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21/03/24

11:41

Post #: 72992022
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Originally posted by Pricklyman: ↑

I mean the last few decades include both a massive uranium bullrun and Fukishima so...yeah, a bit broad!

Short version; DYL is pretty well positioned to take advantage of what is well predicted to be the next uranium bull run which is currently in motion. Whether that comes to pass or not is another story, but signs certainly point to yes, given the macro factors. Countries are increasingly turning to nuclear as a way to provide non-coal baseload whilst renewable technology gets better. Whilst in 100 years we might not need baseload in the way we understand it currently, for the next 50 we certainly very likely will.

There's a massive increasingly amount of demand (e.g. https://www.energy.gov/articles/cop28-countries-launch-declaration-triple-nuclear-energy-capacity-2050-recognizing-key et al) but given the low prices in the past, not much supply, and mine restarts / starts are tricky. Things are starting to come back online / get created (e.g. BOE / PDN), but existing supply (e.g. Kazatomprom) is hampered, with supply not meeting the predicted future demand, particularly in the West.

PDN and BOE are ahead of the curve time-wise and will be in production far sooner than DYL. However, DYL's reserves / mine life / multi-jurisdictional owernship in theory position it to be a better long term play; it's my preferred 'major' play in the U sector for those reasons. It's leadership by big Johnny B. is also considered a major boon. He'll likely step down within 2-4 years by my guess, but that's well enough time to position DYL to take advantage of the market conditions, which are finally turning the way of the miner.

By rights, assuming that the pooch is not proverbially screwed, based on fundamental factors, DYL can equal or surpass the current MCAP of PDN and or BOE, which results in a 2-4x from this point in time. Again, that's all speculation as opposed to some deeply considered idea, but it isn't particularly absurd in my view given the mines that are owned, the percentage of ownership, and most importantly, the foreshadowed U bull run to come.

That's why I'm bullish and heavily invested in the U sector; with DYL being a large portion of that investment.

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How do you see the current differential in share price to the SPP price. Is this unusual for an SPP? I remember BOE's price dropped below the SPP before bouncing earlier this year, but I couldn't participate via my super. This one I can though I have only a very very small holding in DYL

Seems like an opportunity for existing holders to but at a 10%+ discount.

DYL Price at posting: $1.38 Sentiment: Buy Disclosure: Held
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0 Great analysis

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