Weekly Reports | May 14 2019
Sachem Cove Partners believes listed uranium miners present an extraordinary investment opportunity even as the uranium price continues to slide.
-Asymmetrical opportunity in uranium miners
-Spot market extremely weak
-Three Mile Island to close
By Greg Peel
“The near-decade-long bear market for uranium miners has ended,” notes uranium investment platform Sachem Cove Partners. “Due to unsustainably low prices, the market is seeing significant production curtailments, no green-field project development, shrinking inventories, and reduced secondary supplies. As a result, the uranium market has entered a significant multi-year supply deficit.
“The price of uranium needs to rise at least 100% from today’s spot market levels -- and stay there for a sustainable period -- before the majority of miners can even contemplate re-starting idled capacity or moving ahead with new project development.”