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Uranium Sector - Newsletter By Ringler Research As Of 27.08.2017

|About: Denison Mines Corp (DNN), FCUUF, UEC, URA, URG, UUUU, WWR

Summary

Uranium sector statistics

Overview about our Australian and North American uranium stocks in our database

Chart check of some selected uranium stocks: Global X Uranium ETF (URA), Denison Mines (DNN), Fission Uranium (FCUUF), Uranium Energy Corp (UEC), Energy Fuels (UUUU), Ur-Energy (URG), Westwater Resources (WWR)

The last uranium bull market from 2000-2007 re-visited and what could bea trigger for the next one?

Topic: Overview

Topic 2: Our new information portal about the uranium sector: Home - uraniumstocks.info
Topic 3: Uranium sector statistics

Topic 4: Top 5 / Worst 5 performing stocks (18.08.17 – 25.08.17)

Topic 5: Overview of all Australian uranium companies in our database

Topic 6: Overview of all North American uranium producers and developers in our database

Topic 7: Overview of all North American uranium exploration companies in our database

Topic 8: Chart-check of some selected uranium stocks:

Global X Uranium ETF (URA), Denison Mines (DNN), Fission Uranium (OTCQX:FCUUF), Uranium Energy Corp (UEC), Energy Fuels (UUUU),               Ur-Energy (URG), Westwater Resources (WWR)

Topic 9: The last uranium bull market from 2000-2007 re-visited and what could be a trigger for the next one?                                                              

Topic 10: Legal Notes, Disclaimer, Imprint

Topic 2: Our new information portal about the uranium sector: www.uraniumstocks.info

Various types of content available:

  • Interviews
  • Sector news
  • Company news
  • Company profiles
  • Stock watchlist with sort functions (% changes up & down)
  • News about capital raises
  • Background information's about uranium & 3th party Video-Interviews
     

Topic 3: Uranium sector statistics

We have noticed, that North American uranium companies (up 2.6%) have out-performed the Australian uranium companies (down 2.9%) in the last week. The combined market cap for all Australian companies decreased to 884 Mio. USD, the combined market cap of all North American companies was at 5.988 Mio USD (up 2.6%).

Topic 4: Top 5 / Worst 5 performing stocks (18.08.17 – 25.08.17)

 

Topic 5: Overview of all Australian uranium companies in our database

Topic 6: Overview of all North American uranium producers and developers in our database

Topic 7: Overview of all North American uranium exploration companies in our database

Topic 8:  Chart-check of some selected uranium stocks. Many of them made in the last months a rounding bottoming formation.

Most of the uranium stocks made a big reversal between November 2016 and March 2017 – we are mid to long term bullish for the sector! Please see also the increased money inflow into the sector ETF.

 

Topic 9: The last Uranium bull market in the years 2000 to 2007

In the last big uranium bull market, the price of one pound of uranium rose from 7 USD in 2000 in a breathtaking, parabolic movement to over 135 USD in the summer of 2007. One reason was the mine flooding in the largest uranium mine in the world, ‘Cigar Lake’ in the Canadian province Saskatchewan in October 2006. Many energy utilities urged to secure long-term supply delivery contracts with the miners.
The companies from the sector experienced spectacular stock market movements, in some cases several thousand percent. Here are two examples:

  • Cameco rose from 5.50 USD in the top to over 60 USD
  • Hathor exploration rose from 1.6 million to over 587 million USD in 2012 and was taken over by Rio Tinto

It is not the question whether, but only when the strong fundamentals will lead to the re-launch of a new bull market in the uranium sector. What could be a trigger?

  • A renewed reduction in the supply side of Kazakhstan, which has been partly (mainly) settled over the small uranium spot market over the last few years. The announcement of Kazakhstan in January 2016 to reduce its sales volume by almost 10% led to an increase in the spot uranium price from 18.5 to 25 USD.
  • Further reduction on the supply side of the current uranium producers, who do not want to sell their precious resources with high losses. In 2016, Cameco began to close down mines with high production costs. This trend could continue.
  • There are currently 24 reactors in Japan in the approval phase for re-start-up. Should this happen, Japanese sales on the spot uranium market should be drying out – it is likely to be the start of a tandem price movement on the price rise of uranium and shares from the sector
  • A failure of one or more large uranium mines, e.g. like the ‘Cigar Lake’ in October 2006, is likely to trigger a buying panic

Over the next 12-24 months, many long-term uranium supply contracts are being phased out to nuclear power plant operators who have traditionally secured the bulk of their needs not through the spot market, but through long-term contracts. It is also interesting in this context that the pure cost of uranium is only a fraction of the total production costs of a power plant operator. As a result, nuclear power is considered to be very favorable compared to other sources of energy in the current long-term operation, after initially very high investment costs.

Over the last few years, these utility companies have been able to secure their needs by the spot market as the price levels there have been severely depressed by the oversupply of Japanese stocks and contract deliveries. If further sales pressure on the spot market is now eliminated, we expect the utility companies to enter into new long-term delivery contracts. Industry experts estimate the total production cost, including the cost of financing, for a variety of projects worldwide, between 45 and 60 USD per pound. As a result, existing or future uranium producer will not enter into long-term supply contracts that are subject to the current bombed-out low uranium prices. We are assuming that the long-term and spot uranium prices will have to rise significantly in the coming years. It is estimated that over 90% of world uranium production is currently operating at a loss.

If the uranium price remains at the current low level for longer, we expect further production reductions from uranium producers. It also makes no sense for project developers to sell the precious resources at these low prices – so in such a scenario, hardly any new mines will be built.
The equation of dynamically increasing demand in the next few years, with constant or stagnating volumes on the supply side from uranium producers will lead to a new uranium bull market!

 

 Topic 10: Important Notes, Disclaimers and Other Information:

This newsletter (hereafter “the document”) was created to the best of knowledge and belief. It is for information purposes only by persons resident in Federal Republic of Germany, Switzerland and Austria. Neither the document nor any copy thereof may be made available, transmitted or distributed in nations where local laws would be violated (for example, the United States of America, Japan, England, Australia, Canada and their territories). The distribution of this document and the information contained therein to persons resident in countries other than the Federal Republic of Germany, Switzerland and Austria may be restricted by law, and persons into whose possession this document comes should obtain information about and observe any such restrictions, if any. Any failure to comply with this restriction may constitute a violation of Canadian securities laws or those of the US or the laws of another country.

The object of this newsletter could include companies which are engaged in a risky market. Capital investments of any kind, including those in shares in high-risk markets, such as mining companies, are also exposed to some significant risks or even a total loss. The object of this newsletter could be stocks and financial products which have a low market capitalization. Especially for companies with a low market capitalization, investors must often expect a high volatility and/or low market liquidity. The object of this newsletter / document could involve stocks, financial products, indices and commodities which could be associated with major price risks and is therefore unsuitable for inexperienced or risk-averse investors. This is especially true for all Over The Counter (OTC), i.e. the so-called outside of a monitored stock exchange or a regulated market. The same applies to shares that are traded on the Australian Stock Exchange (ASX), on Canadian stock exchanges (i.e. Toronto or Vancouver) or on the Alternative Investment Market (NYSEMKT:AIM), a segment of the London Stock Exchange. The bespoken shares and financial instruments are frequently traded on any of these markets in which they are segments of the highest risk category. Instruments which are traded there, are threatened at any time by the possibility of a total loss, high volatility and the possibility of reduced liquidity and marketability in particular due to low trading volumes. High price opportunities are faced with enormous risks. All of the information contained in this newsletter / document neither constitutes a solicitation nor an offer to sell or purchase any investment or for making other transactions. It is not also not a recommendation as part of investment advice. 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Ringler Consulting and Research GmbH or employees of the Company may at any time conduct buy or sell transactions in the shares of the featured companies (i.e. long or short positions). This also applies to options and derivatives, based on these securities. Those transactions may affect the respective company's stock price under certain circumstances. Published information on the "web pages", the newsletter or the Ringler Research Reports, recommendations, interviews and company presentations are paid by the respective company or third party (so-called "third parties"). The "third parties" include, for example, Investor Relations, Public Relations, Brokers and Investors. Ringler Consulting and Research GmbH may partly directly or indirectly pay for the preparation and electronic distribution and for other services discussed by the company or might be compensated with an allowance of a so-called "third party”. Even if we create each analysis to the best of knowledge and belief and professional standards, we advise you to involve further external sources, such as your local bank or a consultant you trust regarding your investment decisions.

Ringler Consulting and Research GmbH, the author or employees are holding a net long position (in form of stocks or derivative products eg. CFD’s, options) of the following bespoken companies, financial instruments and commodities in this newsletter publication: Aura Energy, Berkeley Energia, Boss Resources, enCore Energy Corp., Energy Fuels Inc., Marenica Energy Ltd., Peninsula Energy, Uranium Energy Corp, Uranium Resources Inc., Western Uranium.

Mandatory information as well as information to be disclosed. Declaration of the company responsible for preparation, the responsible person and issuer:

Company responsible for preparation of this newsletter / document is Ringler Consulting and Research GmbH. Person involved in the preparation of this document / publication: Carsten Ringler, Managing Director of Ringler Consulting and Research GmbH.

Person responsible for forwarding or distributing of this document / publication: Carsten Ringler

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Publisher / Imprint:

Ringler Consulting and Research GmbH
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Authorized Representative (Managing Director): Carsten Ringler         

Telephone: +49 172 6918274                                                                                                                                             

E-Mail: contact@uraniumstocks.info ir kontakt@mining-research.de

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Disclosure: I am/we are long AUEEF,BKLRF,MARXF,URRE, WSTRF,UUUU,PALAF,PENMF,UEC,TGRUF.