A fractured globalised economy still has a few tricks up its sleeve. On 30 September, uranium-holding vehicle Yellow Cake (YCA) took delivery of 1.35mn pounds (lbs) of the energy fuel at a warehouse in Canada.
Tip style
Growth
Risk rating
Medium
Timescale
Medium Term
Bull points
- Good case for rising prices
- Unique vehicle for uranium exposure
- Growing nuclear demand
- Low storage costs
Bear points
- Uncertain value crystallisation
- Mined supply rising
That might not sound special, given Canada is the second largest miner of uranium globally. But this uranium came from Kazakhstan, the world’s biggest miner and exporter of U3O8 (the stable compound form that is most widely traded). As well as conjuring images of heavily guarded convoys and fortress-like storage facilities, the numbers behind the deal itself were also impressive.