Keith Watson and Rob Crayfourd, co-fund managers at the Geiger Counter Fund, shared their outlook on uranium supply, demand and prices, plus which companies they think have the most potential moving forward.
While acknowledging the recent price pullback, the experts said the sector’s long-term outlook is positive.
‘Ultimately we’re at the very start of what we expect to be a longer-term imbalance in supply vs. strong demand, and therefore a very healthy price outlook for the sector,’ Watson explained during the interview.
When asked about the Geiger Counter Fund’s focus, Crayfourd highlighted the Athabasca Basin in Saskatchewan, Canada, saying it’s a tier-one jurisdiction that’s home to a slew of strong uranium assets.
‘We think that those projects, particularly Canadian assets that are uncontracted and able to participate in the upside that we see in the market going forward, are best placed,’ he noted. The fund has a heavy weighting toward NexGen Energy (TSX:NXE,NYSE:NXE), Fission Uranium (TSX:FCU,OTCQX:FCUUF) and IsoEnergy (TSX:ISO,OTCQX:ISENF).
Watson added that it also has exposure to US companies with small but reasonable production profiles that are in the process of starting or restarting output, as well as leverage via stocks with slightly higher-cost deposits.
Watch the interview above for more of their thoughts on uranium stocks, as well as the outlook for the commodity.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.