Petra Capital forecasts sustained strength in uranium market

Uranium Petra Capital report A new report from boutique Australian institutional stockbroking firm Petra Capital is forecasting continued strength in the uranium market.

The estimated uranium term price for August is up 19% year-to-date, with the final third of the year – typically a strong seasonal period for uranium – still to come.

Petra believes an increase in contract volumes through to year-end will help drive material price increases—initially in the term price, with the spot price to follow. Kazatomprom impact

Petra’s report highlighted the impact of Kazatomprom’s recent production forecast issues on the short interest in uranium stocks.“Given the disconnect in equity prices, continued high short interest levels and the demonstrated inability of incumbents to rapidly increase supply, we see an excellent risk/reward to an investment in uranium equities,” the report noted.The firm also pointed to anticipated US interest rate cuts and a potential increase in contract volumes as having […]

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