Is this a good time to buy the Uranium sector?

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Question asked 04/06/2022

Is this a good time to buy the Uranium sector?

Hi James, Scanning the website it’s been a little while since you have covered Uranium. I’m interested in investing in the sector. Does MM consider it a good time to invest in the sector? If so, where should I be looking to invest?

Answer

Hi Michael,

The Uranium Sector has been extremely volatile over the last few years with Paladin (PDN) rallying from ~10c to a peak above $1.10 with some wild swings along the way. Over the last year alone PDN has managed to more than halve on 3 occasions suggesting its a stock to accumulate into weakness as opposed to chase into strength.

Considering the vehicles on offer to play the uranium theme we would indeed keep it simple and look at $2.2bn WA based Paladin Energy (PDN) which we like under 70c.

NB MM holds PDN in our Emerging Companies Portfolio.

chart

Paladin Energy (PDN)

LAST UPDATED 03/06/2022 16:05

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