Denison Mines: Leverage To Future Uranium Prices At A Reasonable Valuation

AscentXmedia/E+ via Getty Images The big picture: uranium and uranium equities

Uranium prices are quietly rising, but it remains unclear whether this recent movement is driven by speculators front-running the launch of the Zuri-invest Uranium Actively Managed Certificate , or if it signifies a more significant structural change in the uranium market. However, investment vehicles like the Sprott Physical Uranium Trust (SPUT) are not responsible for this price increase, as SPUT has been trading at a discount to NAV since March.

Therefore, we are observing an interesting divergence at the moment. Sentiment in the uranium sector is low, as evidenced by the 50% correction of many uranium equities from their previous highs. However, simultaneously, both the uranium spot price and long-term price are showing an upward trend. If we are indeed at an inflection point where the uranium market is returning to being production-driven, an opportunity presents itself for investors […]

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