Commodities: Uranium
Reported FY24 overnight ahead of expectations thanks to a cracking 4th quarter, with over half the company’s annual C$905m cash from operations being generated in in the period due to strong sales.
Hi guys
I like both boe and pdn at these levels and im quite bullish on the uranium theme. My only concern in the short term is that trump seems in the process of doing a peace deal between ukraine and russia and if this eventuates it could see a sell off in these uranium stocks as russia has is a large uranium producer and may re enter the world market increasing supply. Your thoughts please
Thanks
Tony
Big moves in the last 24 hours across the global Uranium stocks, with Cameco down an aggregate of ~13% across the two sessions (with a slight recovery overnight). By now, we’ve all read extensively about DeepSeek-R1, which uses more efficient algorithms to achieve the same results as the OpenAI model, implying AI computing can be less energy-intensive than first thought.
Investment bank UBS has lowered its outlook for uranium over the next two years by 9% to $US78 a pound in 2025 and 2026 and cut its share price target for Boss Energy (BOE) by 3% to $3.40.
In your 19/11/24 opinion article, BOE was at $3.07 and you guys thought it was a decent risk/reward price. I am looking to buy some asap, at $2.51 today’s price. Do you have any further opinions of today’s price?
This morning’s pick feels like entering the lion’s den and a very different proposition to Catapult (CAT) 3-months ago. PDN is down more than 50% from its 2024 high, but we believe it’s standout value around $7.50.
We’ve discussed at length our view that nuclear energy will play an increasing role in fuelling the world in the years ahead as the world (bar Trump) strives for a cleaner planet, a goal hindered by AI’s increasingly colossal energy demand.
Why has there been such an underperformance of our Uranium stocks on the ASX this year? You have picked a good thematic in Uranium and have Paladin in your growth portfolio, but it is down 50%.
Hi MM team, tuned into the midweek webinar on “Assessing poor performers”. Thanks for the great update, really enjoyed your commentary!
We have discussed PDN at length in recent days/weeks as the stock has become increasingly disliked; it now has a 14.4% short position, and only Boss Energy (BOE) at 15.2% is larger in the space.
