The thing is though... Uranium didn't cop a hammering at all. It stayed nearly flat.
In fact Uranium is still "objectively" cheap with current spot price of around $45 well below what most easy to restart Uranium production need to make any reasonable profit. And those restarts won't be enough to fill up the short fall in supply to even be able to sustain current demand... with mines also getting depleted.
It is therefore no surprise that there isn't an analyst out there that predicts falling U spot prices over the next few years. Just to get the currently idle mines restarted the U spot has to go well north of $50 per LB for some time. And for any new (very much needed) supply to come online the price would have to go to at least $65 but possibly as high as $90...
This isn't taking into account growing demand from a world changing its view point on nuclear power or Sprott's SPUT buying up large amount of uranium. So very much a conservative base case.
With other words you could buy Uranium today at $45 and there is a very high degree of certainty it will get to at least $65 within a few years. That is a pretty good return for a near certain and solid investment!
The best way to buy Uranium is obviously the Sprott SPUT... Which was trading at a 4.5% discount as of yesterday... So instead of having to pay $45 for your Uranium you could buy it for just $43! What an opportunity! You think sound minded investors would be all over such and obvious bargain! Instead the SPUT units dropped further to now over 6% discount!
Its pretty apparent that Omicron, what ever damage it might cause, will have zero impact on Uranium demand or the future of Nuclear power...I think the above example clearly illustrates the current lack of any sense in the market. Uranium equities are being sold off without any regards for the fundamentals.
92E Price at posting:
55.5¢ Sentiment: Buy Disclosure: Held
