Mineweb reported an interview with “The Energy Report” and Jeb Handwergwer, who says the uranium sector is going to have a very powerful rebound based on supply-demand fundamentals.
Jeb Handwergwer said:
We experienced the Fukushima disaster, plus a very risk-off market for most of 2011 and 2012 in commodities and mining equities, with investors concerned about the global economic situation. That added up to two major hits to the uranium sector. In addition, we had many lobbying groups pushing their individual energy sources, such as natural gas, coal, wind or solar, to take advantage of the nuclear slowdown. We also saw a large short position build in many of the uranium miners and we’ve seen the short-term uranium price correct. At this point, the uranium miners are trading near 52-week lows, and I believe they are extremely undervalued. Even Japan is looking to acquire uranium miners.