Summary
The net present value of Patterson Lake South is close to zero at today’s long-term uranium prices.
There is an ongoing disconnect between uranium prices and the share prices of uranium miners.
In view of this, I think this is a good time to sell Fission Uranium. Professor25/iStock via Getty Images Investment thesis In December 2020, I wrote a bearish article on SA about Canadian uranium miner Fission Uranium ( OTCQX:FCUUF ) and the result is embarrassing. I wrote that the Patterson Lake South (PLS) uranium project looked worthless and Fission Uranium’s valuation has increased by more than 50% as of the time of writing.As Peter Lynch likes to say, if you’re good, you’re right six times out of ten. Sometimes, the share price of a company keeps soaring despite the fundamentals of the business not changing. It’s just how the stock market works.Looking at current uranium […]
Click here to view original web page at seekingalpha.com
Posting Guidelines
- Do contribute something to the discussion
- Do post factual information, analysis and your view on company valuations
- Do disclose if you have an interest in a security
- Do take our Terms of Use seriously
- Do not make low-content posts, unsubstantiated ramps or untruthful/misleading statements
- Do not complain about a post unless you have reported it first, and not on the forum.
- Do not post financial advice
- Do not advertise or post sponsored content
Get involved!
Get Connected!
Come and join our community. Expand your network and get to know new people!
Comments