- The company’s business is structured in such a way that its shares are meant to follow the price of uranium, which makes it a good way to get exposure.
- The global uranium market has an annual deficit of around 30 million pounds and prices need to recover to at least $50 per pound to incentivize the opening of mines.
- The Athabasca Basin is a terrible place for a uranium mine and the timeline for the recovery of uranium prices is impossible to predict.
- With this in mind, I think investing in Uranium Participation provides a very good long-term exposure to the uranium market recovery thesis.
For further details see:
Uranium Participation: Uranium Prices Will Recover, Eventually