Hedging Your Uranium Trades For Profit In An Ambiguous Environment
Kevin Feeney • 13 Comments
Kevin Feeney • 13 Comments
Thu, Aug. 11, 2:02 PM
Wed, Jun. 8, 5:58 PM
- A uranium glut that has caused futures prices to drop 18% YTD - the worst performer among all the world's commodities - is set to turn into a shortage as miners cut output and nuclear reactor construction climbs, Uranium Energy (NYSEMKT:UEC) CEO Amir Adnani tells Bloomberg.
- Oversupply from mines in Kazakhstan, Canada and Australia has sent prices plunging even as iron ore and oil rally, but as supply diminishes and demand improves, stockpiles will be eroded and the slump will reverse, the CEO says.
- Prices are not factoring in the pace at which inventories will disappear in coming years, according to Morningstar's David Wang, who expects uranium to more than double to about $65/lb. by 2019 from $28.25 now.
- Relevant tickers include: CCJ, URG, URZ, UUUU, URRE, URA.
Wed, Jun. 8, 9:16 AM
Mon, Mar. 7, 10:58 AM
- Uranium Energy (UEC -8%) is sharply lower after offering more than 12.36M units at $0.85/unit to institutional investors for gross proceeds of up to $10.5M.
- UEC says the capital raise will place it in a strong financial position to advance its portfolio of uranium projects with exploration and production permitting at the Burke Hollow ISR project in south Texas, permitting for baseline studies at the Anderson project in Arizona, and exploration and permitting at ISR projects in Paraguay.
Thu, Jan. 28, 4:43 PM
- Uranium spot prices likely will remain under pressure for the rest of the decade because of high inventory levels, recycling of already-mined uranium and the slow restart of Japan's nuclear reactors, Fitch Ratings forecasts.
- An extended period of oversupply has contributed to a major build-up in utilities' uranium stockpiles, with European utilities having enough fuel to last three years and Japanese utilities enough for 4-5 years, which will maintain pressure on prices as demand slowly recovers, Fitch says.
- Relevant stocks: CCJ, DNN, LEU, URRE, UEC, URG, UUUU.
- ETFs: URA, NLR
Dec. 8, 2015, 4:45 PM
- Uranium Energy (NYSEMKT:UEC): FQ1 EPS of -$0.05
Oct. 14, 2015, 6:19 AM
Aug. 10, 2015, 11:58 AM
- Japan is rejoining the countries using atomic power after the Fukushima nuclear disaster more than four years ago, as Kyushu Electric Power says it will begin bringing online the No. 1 reactor at its Sendai facility on Aug. 11, start power generation as early as Aug. 14 and return it to normal operations next month.
- The move is an important de-risking event for the uranium market, says BMO Capital analyst Edward Sterck: While "Japanese utilities are sitting on significant excess inventories, the fact that these will now start to be consumed [in Japan] should ease fears of sales from inventory,” and it shows there is a regulatory restart process in Japan that actually works, which clears the way for more.
- Relevant stocks: CCJ +4.1%, DNN +5.1%, LEU -1.3%, URRE +5.7%, UEC -1.5%, URG -2.7%, UUUU +8%.
- ETFs: URA, NLR
Jun. 24, 2015, 12:45 PM
Jun. 22, 2015, 5:55 PM
- Uranium Energy (NYSEMKT:UEC) and Energy Fuels (NYSEMKT:UUUU) jumped a respective 13.1% and 9.9% in today's trade after the companies were added to the Russell 3000 and Russell Global indexes (I, II), effective after the close of trading on June 26.
- The annual reconstitution of the Russell indexes captures the 4,000 largest U.S. stocks as of the end of May, ranking them by total market cap; membership in the Russell 3000 remains in place for one year.
Jun. 22, 2015, 9:18 AM
Jun. 19, 2015, 3:33 PM
- Uranium Energy (UEC -17.1%) responds to recent negative reports, including a recent Street Sweeper article, saying the reports have no merit and are comprised of "unfounded allegations made by a third party whose motives are questionable."
- UEC has been chopped by nearly a third since the report's release Wednesday morning.
- Separately, UEC CEO Amir Adnani disclosed a purchase today of 25K shares at $1.88 each, worth ~$47K.
Jun. 19, 2015, 12:46 PM
Jun. 18, 2015, 3:57 PM
- Uranium Energy (UEC -6.5%) is sharply lower, perhaps attributable to a negative Street Sweeper article which says "the bad news [was] buried" in the recent sale of $3M worth of uranium held in inventory.
- The sale of 80K lbs. of finished uranium raised short-term cash but the company "blew almost the entire wad," since only 4K lbs. now remain in inventory, according to the article.
- Even if UEC sold all its remaining ounces at $38/lb., $2 above current prices, it would bring only ~$152K - "that’s nothing, especially to a company that is sitting on its last few bucks and currently has no way to generate revenue," the article says.
Jun. 9, 2015, 12:23 PM
- Uranium Energy (UEC +0.9%) is started with a Buy rating and $4.20 price target at H.C. Wainwright, which calls UEC "a uranium ISR powerhouse in the making" and says the company is well positioned to ramp up production quickly should spot uranium prices continue to improve (Briefing.com).
- The firm says UEC is taking an opportunistic approach with selling uranium given lower spot prices; in addition to no existing long-term contracts, the firm believes the strategy provides UEC with significant leverage to spot uranium prices going forward.
Jun. 9, 2015, 6:10 AM
- Uranium Energy (NYSEMKT:UEC): FQ3 EPS of -$0.06