Uranium: What Retail Investors Need to Know About ASX Uranium Juniors

Matt talks about the past few tumultuous months for uranium juniors on the ASX and gets their thoughts on what the future holds for uranium investors. Today he is joined by Keith Bowes, MD of Lotus Resources, Greg Hall, CEO & MD of Alligator Energy and Wayne Heili, CEO & MD of Peninsula Energy, 3 companies we have had the pleasure of talking to this year and whose stories we think are particularly interesting for different reasons.

Recent movement in the uranium market has emphasised the fact that there will be room for start-up projects in addition to re-start projects and enhancement of current projects in the sector. It takes time to get projects moving into production and it might be necessary to amend company strategies to accelerate projects towards production now that uranium spot price has increased. Buoyancy in the market creates opportunities and attracts investment attention and can also allow companies access to good availability of experienced high-level staff.

Utility buyers are starting to pay attention as the oversupply situation is drying up and we are on the cusp of a long term opportunity for uranium producers who ultimately need to sign long term contracts with utility companies.

Social media is an important tool for uranium producers and enables companies to get their story out to the market and also to exchange stories and technical information across the industry.

There are challenges ahead for uranium producers which includes the availability of skilled labour and in some jurisdictions this is proving more difficult than in others. Producers are recruiting skilled people back into the industry and ramping up projects towards drilling and onto production.

Most producers have seen an increase in their share price over recent months which has settled down in the last few weeks. There is a shortage of uranium supply in the short term which has caused buyers to start to consider long term contracts.

Investors new to the sector should be reminded that the uranium market is coming out of a 10 year ‘bear’ market and that uranium stocks today are still largely undervalued. It is a good time to look at investment in the uranium sector as there is still a long way to go with company valuations which are on the increase.

0:00 – Panel Interview: Company Overview
1:00 – Change in Strategy After Uranium Burst Trust Factor
6:38 – Recent Pump Excitement, Deriving Force, Temporary Price Appreciation?
12:03 – Strategic Adjustments, Concerns Regarding Supply Demand Gap
19:10 – Safe Investment: Uranium Being a Clean Sustainable Source
23:05 – Resistances: Government, Politics, Trust, Infrastructure & Mentality
27:25 – Production Challenges, Concerns, Biden Government & US conditions in General
30:36 – Chances for Retail Investors, Spot Buying, Uncertainty in Utility Buyers
36:01 – Regulatory side of Uranium Business
39:20 – Advice for Investors
45:37 – Outro

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