Commodities: Uranium
Hi MM,
Coronado Global Resources (CRN) share price has dropped like an elevator this year. After getting down to 10 cents it is rising as quickly as it fell, even though the price of coal hasn’t changed much over the past few months. What do you believe is fair value in terms of the share price, based on current coal prices, and do you believe there are any ongoing liquidity or balance sheet risks remaining?
Peninsula Energy (PEN) has recently returned from suspension and is undertaking an equity raise. The company has failed to deliver the targets they had previously stipulated and now need further funds. What are your current thoughts on this company, especially from a risk reward perspective, at the current share price?
Thankyou
Chris
Good morning guys,
Appreciate if we I can have your views on two uranium miners (PDN and BOE), especially what would make you pull the exit trigger and at what price you would consider exiting.
I was looking at the chart of one of the Uranium ETFs this week (pity I couldn’t attach it). For the past 12 months there have been heavy trading volumes, both buy and sell. In fact, they almost cancel each other out. Obviously, traders (and bots) take advantage of the volatility in the sector, but are their volumes enough to actually keep a lid on the share prices?
PDN -3.06%: Slipped on its FY25 earnings today, although we note it was an overall weak session for the sector with Deep Yellow (DYL) -3.39% Boss Energy (BOE) -5.96%. Compared to recent times a very quiet day following a report from PDN, illustrating it contained no real surprises.
The local uranium story feels like a combination of the gold and copper narrative, with panic buying unwinding and ASX underperformance prevailing. The ASX-traded Global Uranium ETF (URNM), which has a small exposure to ASX names, has advanced 12% year to date after enduring a sharp sell-off into April. It has largely followed the underlying uranium price, although this can be hard to track at times.
Hi Market Matters Team
Will you be participating in the Liontown Resources & Silex Systems SPP? in terms of pricing – I Know you like the current price to be trading 10% above the SPP price. LTR is doing that at the moment but Silex is trading around the SPP price. What other factors are you considering for these 2 stocks in deciding your participation?
regards
Debbie
The ASX uranium miners have proven a minefield for local investors with the performance of say Boss Energy (BOE) and Paladin (PDN) bearing little resemblance to the global picture. However, the global URNM ETF currently holds 18.7% in Cameco, 13% in NAC Kazatomprom, 10.8% in Sprott physical uranium with NexGen (NXG) the largest ASX holding at 4.9%.
SLX -15.77%: hit today after they came back online post capital raise, replenishing the coffers with ~$130m at $3.90 a piece, to support the commercialisation of its uranium enrichment technology in the US.
I believe the risk/reward towards the URNM ETF is attractive if we see a spike below $8 over the coming week.
