How to Make Triple-Digit Gains in Uranium Stocks THIS Year

Editor's note: 

My flagship service Junior Resource Monthly has always prided itself on taking a long-term contrarian approach to the high-risk/high-reward resource sector. I like to be early on megatrends and I like to position ahead of the herd as Mr. Dines would often say. The service was positioned well last year during uranium’s first leg up with multiple positions up triple digits. And just three weeks ago in the most recent issue, I led with the following thoughts on how I thought the next leg higher in the uranium space would play out. 
I wanted to provide you a sneak peek of the intro in that issue and hope you join me for what I believe is going to be a historic commodity bull market across many metals.

— Gerardo

How to Make Triple-Digit Gains in Uranium Stocks THIS Year

“Uranium has likely reached a pivotal inflection point that could force the price higher by as much as three to four-fold over the next several years. For the first time in history, uranium has slipped into a persistent and widening deficit. We believe the results will be dramatic.”
That’s how Goehring & Rozencwajg Associates, LLC describes the state of the uranium market — and I couldn’t agree more.

After a boring and sharp consolidation in the space, the uranium spot price is now flirting with a 16-year high, prices not seen since August of 2008, when the spot price hit $65/lb.

I suspect the climb from $60 to $70/lb will be an expedited one compared to how long it took to go from $50 to $60.

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Why? Several reasons.

The coup in Niger, coupled with other geopolitical factors — including the Russian invasion of the Ukraine — are underscoring a global rush to establish independent energy sources that can contribute to a bipartisan push around the world to increase energy efficiency in order to meet net zero climate goals.

If that wasn’t enough, Cameco & Orano added fuel to the fire by announcing a 2.7 million pound production drop that is likely going to need to be met by buying in the open market.

That’s why I have been patient with the uranium portion of the portfolio. Uranium markets are brutal to the downside but absolutely violent to the upside when they get going.

Cameco went on to explain that skilled worker shortages, infrastructure costs, and resourcing, along with supply chain challenges, were to blame. Equipment and efficiency issues on a new zone of mining in the orebody at Cigar Lake were also a major factor.

It won’t be the last company with similar issues. For new subscribers or subscribers that haven’t yet accumulated uranium stocks, now is the time to get that done as I suspect the train is ready to leave the station.

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Gerardo Del Real

Gerardo Del Real
Editor, Daily Profit Cycle