- Underinvestment in new mines and Covid-19 shutdowns are contributing to a coming supply shortage in the uranium market. Geopolitical risks could make the shortage even more extreme.
- Furthermore, utilities have significant demand in the coming years that is not yet covered by long-term contracts.
- This setup is similar to what happened in the last uranium bull market, when hedge funds stockpiled physical uranium, and utilities were forced to scramble for supply.
- Buying Yellow Cake and Uranium Participation allows you to buy in advance of the utilities.
- Furthermore, both companies trade at steep discounts to the physical uranium they own, and have been conducting highly accretive stock buybacks.
For further details see:
Radioactive Cannibals Could Deliver High Returns For Investors