For the last decade Uranium has been a place to avoid with prices for ‘yellow cake’ below the cost of production providing little incentive for new investment. That’s changing as the market starts to price in a large looming supply deficit and prices are edging higher. As MM has flagged previously, the tide here is turning, and while stocks in the sector have already run up, they are coming off a very low base – in MM’s view, there is a lot more to go.
In our opinion, PDN is the standout business in the sector with the restart of the Langer Heinrich (PDN owns 75%) uranium mine in Namibia plus the company has a quality suite of exploration assets putting it in good stead to take advantage of the changing pricing environment.
MM is bullish PDN
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