Uranium stocks

[Sean K]

Hmmm, bit of a scattered irregular rotate today.
Money flying all other directions, mostly.

Yeah, no idea. Maybe just locking in the short term gains for a retreat and then the next push. The whole sector, including overseas, has run ahead of itself. SPUT buying and the POU up 10% or so the past couple of weeks was the catalyst. There's expectations that it's not a one off and the price will continue to rise, but maybe not that sharply. There's some crazy bullish comments on social media from 'experts' claiming $200 going down the track, which sounds a bit insane to me. I can't imagine a spike like we had back in 2005-08 ish. Maybe that little rally was it and the money goes back to Bit Coin?

 

[aus_trader]

Maybe I'll buy one of the majors on a pull back as I don't have any exposure to the sector. But maybe not the biggest PDN as it's run way too hard, maybe a mid-cap U stock.

 

[Sean K]

Maybe I'll buy one of the majors on a pull back as I don't have any exposure to the sector. But maybe not the biggest PDN as it's run way too hard, maybe a mid-cap U stock.

It's a bit of a pluck on who to choose out of the junior U bunch. You're right about PDN and it's MC is huge compared to the others. Most were under $100m only a few weeks ago. I just went for the ones Sprott / Rick Rule were backing the most. Although, they have a vested interest in them as they've put a lot of their own coin in.

A recent summary of a few here.

 

[Dona Ferentes]

Ten years ago, the tsunami and then meltdown at Fukushima put paid to the Uranium market. There was a demand shock and prolonged downturn as mines shut or entered care and maintenance. The spot price traded in a depressed range of $US20 to $US30 a pound ... not nearly high enough to encourage production.

But after a decade in the shadows, the sector has been jolted back to life within just a few weeks thanks largely to the Sprott Physical Uranium Trust (SPUT). The vehicle is in the midst of a buying frenzy of physical uranium, taking supply out of the market and boosting the spot price to $US40.40 a pound ... its highest level in seven years.

There has been so much fuel on the floor of the uranium market given it has been such an undersupplied commodity, the portfolio manager of Tribeca's global natural resources fund, Ben Cleary, said. The match to set this on fire has been Sprott buying spot [uranium].

SPUT is the largest listed physical uranium fund and began trading on the Toronto Stock Exchange in July after Sprott Asset Management, a subsidiary of global precious metals investment manager Sprott Inc, purchased it from Uranium Participation Corp.

While the fund goal remained the same - buying and holding uranium to provide investors with exposure to movements in its spot price - the new SPUT structure as a trust allowed it to launch a $US300 million at the market offering on August 17, meaning it could issue units and raise cash to consistently purchase the commodity.

The strategy is similar to the London listed Yellow Cake PLC, which has also been buying and holding physical uranium, albeit at a slower rate. The company holds 13.3 million pounds of the commodity in storage in Canada and France as of its latest quarterly update in August.

SPUT has purchased 6 million pounds of uranium in the spot market and deployed more than $US200 million of its ATM in the past month.

.....

One broker has a preferred exposure in Paladin Energy, which plans to restart its Namibian mine, having placed it into care and maintenance in August 2018. The stock has tripled this year to 82¢. Shaw & Partners upgraded its price target from 56¢ to $1.00.
Boss Energy announced this week that the engineering process to restart its Honeymoon Project in South Australia is running well ahead of schedule. Its share price has surged more than 150 per cent this year to 26¢. Shaw upgraded its price target from 17¢ to 30¢. The broker made the same upgrade to Peninsula Energy, while boosting the Vimy Resources price target from 25¢ to 27¢. Shaw & Partners has a buy rating on all four stocks.

 

[Sean K]

This has been a beautiful thing too watch. Surely, can't keep going. Must stop at some point.

 

[frugal.rock]

This has been a beautiful thing too watch. Surely, can't keep going. Must stop at some point.

Quite hysterical really.
I mean, who buys at those highs ?

Bots selling to each other and of course the entities are not known to each other, ever.
Doesn't happen, never. ?

 

[sptrawler]

This has been a beautiful thing too watch. Surely, can't keep going. Must stop at some point.

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Hopefully there is a pull back, you have called it well kennas, my gut feeling is nuclear isn't a matter of if, but when.
I should have been more proactive.
Which of the aussie miners are producing? If you don't mind someone being lazy.
I had deep yellow about 100 years ago, but lost interest a long time back, guess I'm going to have to stoke the fire again.

 

[aus_trader]

One of the few sectors that's bolting atm.

Oh well, can't catch them all when they gallop out the gates.

I had DYL too in the speculative portfolio with good reasons, but the sector was in the doldrums then, so just couldn't tie up the capital in a trading portfolio just hoping for the tide to turn some day. Looks like that day is here, but prices have just shot straight up.

 

[frugal.rock]

Which of the aussie miners are producing? If you don't mind someone being lazy.

Get me a beer first, then I'll tell you...?

 

[Sean K]

Which of the aussie miners are producing? If you don't mind someone being lazy.

None really. I think BHP is the only one producing - as a by-product at Olympic Dam.

There's only a few who have plants, were mining, and are ready to go after a start up process.

PDN has Langar Heinrich on care and maintenance.
LOT bought Kayelekera from Paladin and that's on care and maintenance.
BOE have Honeymoon which needs to be upgraded and will be ready to go in 12 months.

EL8, BMN and DYL have deposits of various standards but way off mining.

 

[sptrawler]

None really. I think BHP is the only one producing - as a by-product at Olympic Dam.

There's only a few who have plants, were mining, and are ready to go after a start up process.

PDN has Langar Heinrich on care and maintenance.
LOT bought Kayelekera from Paladin and that's on care and maintenance.
BOE have Honeymoon which needs to be upgraded and will be ready to go in 12 months.

EL8, BMN and DYL have deposits of various standards but way off mining.

It is hard to understand the rush of enthusiasm then, unless people are expecting an announcement of some sort re nuclear power.

 

[tech/a]

I personally stopped looking for reasons why price rises and falls a loooong time ago.
If I can get on a rising trade and off a falling trade its only up to me. Don't need reasons.

 

[frugal.rock]

Some might be interested in OKR (Okapi) today based off their announcement today that contains the word uranium and is marked market sensitive.

Was a chart of interest on weekend by @tech/a I believe.

Some other nefarious unnamed mob may be promoting it also...

Will give this a miss myself.

 

[Sean K]

It is hard to understand the rush of enthusiasm then, unless people are expecting an announcement of some sort re nuclear power.

I first got onto this watching you tube videos of Rick Rule talking about uranium and the purchase of the Uranium Participation Corp by Sprott Physical Uranium Trust. The two basic reasons are future supply/demand and push to clean energy. Rick Rule was buying these stocks two years ago.

 

[tech/a]

Some might be interested in OKR (Okapi) today based off their announcement today that contains the word uranium and is marked market sensitive.

Was a chart of interest on weekend by @tech/a I believe.

Some other nefarious unnamed mob may be promoting it also...

Will give this a miss myself.

Have a few.

 

[Sean K]

Let the insanity continue. I think this thing has some land in Botswana that smells of uranium.

 

[Sean K]

When I first started seriously looking at these in July I thought I'd missed the boat already. I originally thought this was a 3-5 year strategic plan. Now, I just think this is insane. Have to take some profits at this point, but still see a longer term fundamental play here.

 

[Boggo]

 

[Sean K]

Will be interesting to see how much and how long a proper consolidation will take for all the juniors that went parabolic over the past couple of weeks. There's every chance they go back to the point of lift off, IMO. Go up in a lift and you potentially come back down in the lift. The POU and uranium companies were mentioned in the mainstream media finance reporting over the weekend. A good sign that the easy gains may have been made. Haven't had an Uber driver tell me to buy yet, so maybe there's still some hope.

 

[qldfrog]

Will be interesting to see how much and how long a proper consolidation will take for all the juniors that went parabolic over the past couple of weeks. There's every chance they go back to the point of lift off, IMO. Go up in a lift and you potentially come back down in the lift. The POU and uranium companies were mentioned in the mainstream media finance reporting over the weekend. A good sign that the easy gains may have been made. Haven't had an Uber driver tell me to buy yet, so maybe there's still some hope.

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And the frog systems obviously hit hard today with this new fall..will be interesting to see how it develops during the week.these will determine profit or loss this week for me .