Lobo Tiggre of IndependentSpeculator.com shares his thoughts on uranium, including what factors are important to watch at the moment.
There have been a number of interesting announcements in the uranium space so far this year. But which ones are important and what news may be overhyped?
Speaking to the Investing News Network, Lobo Tiggre, founder and CEO of IndependentSpeculator.com, shared his thoughts on where uranium investors should direct their attention right now.
One factor that’s made headlines in recent months is physical uranium purchases from companies in the space. As Tiggre explained, this activity initially spurred expectations for upward price momentum.
Although uranium is having a good month (and a good year), so far a larger price rise hasn’t materialized.
“I wish it had had a bigger impact than it did. The big hope I think when that started was that (the purchases would) soak up all the easy uranium out there … and then you would have much more real negotiations between buyers and sellers, setting more realistic prices — and that could really unleash the spot price,” said Tiggre in the June 29 interview.
He also touched on the news that Sprott Asset Management will be taking over management of Uranium Participation (TSX:U,OTC Pink:URPTF), creating a new entity called the Sprott Physical Uranium Trust.
Tiggre sees this as positive, but again — not a game changer. He noted that while the debut of the trust could ultimately spur more uranium purchases, immediate fireworks are unlikely. “It should have a beneficial effect, but it could take months, maybe even years to trickle through to really have an effect where it changes materially how much uranium Sprott would be taking off the market,” he commented.
All of that said, Tiggre is bullish on uranium and sees a future where prices are much higher.
“I will go so far as to say I think that we will see uranium spike to who knows what,” he said, pointing out that during its last run uranium went to US$140 per pound. Tiggre isn’t sure it will rise that high this time around, but does see the commodity going past its incentive price, which he pegs at more than US$60.
“I think we’re going to see — I don’t know, much higher than the incentive price. Could it go over US$100? Yes, I think so. Could it blow away the previous all-time high? Yes, I think so. Will it stay there? No, I don’t think so,” he said. “But I think after it comes back down to Earth — I think we will see it stabilize near that incentive price or better. Because less than that there just won’t be enough uranium.”
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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.