A powerful chart from Cantor Fitzgerald Canada Research which shows uranium (U3O8) moving into deficit which will last beyond 2030:
Notice how the deficit is projected to tremendously accelerate beginning in 2027 as supply falls off. Another graphic courtesy of UPC illustrates how uncovered utility demand accelerates beyond 2020:
These 2 charts form much of the bullish long term story for uranium and already in the first two weeks of 2017 investors have begun to seriously pay attention, substantially bidding up uranium exploration & production shares:
The question investors should be asking themselves is: “Is this the beginning of something much bigger or is it a violent bear market rally which will soon fizzle out?”
If the above supply/demand forecast chart is correct we can expect to see utilities begin to scramble to take care of their uncovered demand beyond 2020, it will be the pricing of these new long term contracts that matters the most.
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