Chart of the Week

The surge by uranium has been as exponential as the descent by lithium, not many anticipated either move at the start of 2023. While there may be further to go, the relative performance elastic band is stretching, and the possibilities of a snapback are increasing rapidly.

• We think uranium is likely to consolidate/pull back while lithium can bounce from ~$US15,000, i.e. the respective gap narrows.
• The market is now collectively bullish on Uranium with many analysts chasing the market higher with their forecasts, while they are doing the opposite with Lithium. These are reactive rather than proactive moves in MM’s view.