View on Uranium
What is your view on uranium? Is it near the bottom? I have PDN which has lost 20%, should we hold onto it or cut loss? Thanks.
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Answer
Hi Ambrose,
Please excuse the brevity of this morning’s answer but the question came in after midday on Friday AEST.
Thursday nights result from Kazatomprom was better than expected which will ease tightness in the uranium market, at least short-term. However, it is a marginal improvement on a previously lowered number, and we still expect to see a downgrade to CY25 guidance. We remain bullish on the outlook for uranium prices and the sector and see the recent lull in contracting activity, and subsequent pull back in the spot uranium price and uranium equities, as an ideal entry point to the sector.
- MM remains bullish on uranium and Paladin (PDN), though, this is a very volatile sector so position sizes/weights should reflect that. Expect more weakness on Monday, Cameco (CCJ US) was down another 7% in the US on Friday night.
