Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Good Morning, I've been ever so patient with Uranium equities, both on the ASX and North America, albeit with my heart in my mouth most of the time. General consensus seems to be that it could take years for these stocks to recover, if not move higher from there. Surely the utilities are going to start buying at these extremely low spot prices? How do you think uranium stocks might perform in the near-term (ie) the next 12 months or so?
Hi David,
It feels like MM has been on a similar journey to yourself. As an example, local heavyweight Paladin (PDN), that MM owns in its Active Growth & Emerging Companies Portfolios, has had a very tough year, but more so recently.
We think this is due to the misguided view that if Trump can solve the war between Russia and Ukraine, Russia will be back in the market selling Uranium. However, Russia is actually a net importer of Uranium, which they enrich, then export. The demand for Uranium we doubt would be impacted if the conflict stops, and Russia re-joins global trade. The other issue is around AI (following DeepSeek) and the prospect of less energy intensive models. This is a concern, but one we believe is priced into the market.
Ultimately, we believe the long-term growth drivers of uranium demand still outweigh the short-term jitters. When it turns, it will do very quickly, so we intend to remain patient. The next few months are difficult to predict, but the next 12-24 months we think will be a lot better.
Take a free trial.
No payment details required.
Forgot password? Request a One Time Password or reset your password
One Time Password
Check your email for an email from [email protected]
Subject: Your OTP for Account Access
This email will have a code you can use as your One Time Password for instant access
A link to create a new password will be sent to the email address you have registered to your account.
Hi, this is only available to members. Join today and access the latest views on the latest developments from a professional money manager.
Our Smart Phone App will give you access to much of our content and notifications. Download for free today.
