Uranium was a hot topic at the recent International Metal Writers Conference, and after it was over the Investing News Network had the chance to hear more about the commodity from Michael Alkin, founder and director of research at The Stock Catalyst Report.
Alkin, whose presentation at the show was titled “Uranium: A New Bull Market is Dawning,” was able to elaborate on some of the reasons he believes a uranium price recovery is finally in the cards. In particular, he highlighted three catalysts that he believes investors should watch:
- Kazatomprom’s Swiss marketing arm — Kazatomprom’s soon-to-be-established Swiss marketing arm will allow Kazakhstan to “become what’s called a swing seller. So they can choose when they want to sell and to whom they want to sell.”
- Decreased underfeeding — Underfeeding is a big source of secondary uranium supply, and Alkin sees “underfeeding com[ing] offline to some degree.”
- Lower US Department of Energy sales — “The department of energy in the US has reduced the amount of inventories they’re selling into the market by over half,” said Alkin.
Alkin believes there will be opportunities to make money in the uranium market moving forward, though he emphasized that investors should take the approach that’s right for them. “When you look at the risk/reward it’s pretty dramatically skewed to the upside,” he said.
Watch the video above to learn more of Alkin’s thoughts on the uranium market. The transcript for this interview will be added shortly.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.