Part of the Stock Digest group of websites: Visit Tech Stock Digest  

Nick Hodge: Uranium Prices Have to Rise Soon

Uranium has spent years in the doldrums, but Nick Hodge, founder and president of the Outsider Club, thinks it won’t be long before there’s a turnaround.

“I don’t think any uranium company in the world is making money [at $20 to $21 a pound], and so by the laws of supply and demand, the price has to rise,” he said at the recent New Orleans Investment Conference. “I think there’s a very real opportunity for investors to take positions in quality companies that have high-grade and shallow uranium assets that are really going to reap rewards in the next cycle.”

When asked what he’s doing to take advantage of the situation, Hodge said he’s a large shareholder in Fission Uranium (TSX:FCU). “They own an asset in Athabasca Basin in Saskatchewan that has 100 million known pounds now, there’s likely much more than that,” he said.

Hodge added that the company has done a lot of drilling since releasing a preliminary economic assessment (PEA) for the project, and there could be “a lot of pounds that haven’t been formally added to the resource in the form of a 43-101 compliant document. They look to do that next year, and I think you’ll see this thing start to creep to 150 or 200 million pounds.”

Subscribe to the RSD email list and get the latest resource stock activity directly to your inbox, for free.

MARKET SUMMARY

INDICES

Name Last Change
DOW 23363.10 0.41%
S&P 500 2578.77 0.27%
NASDAQ 6782.29 0.16%
TSX 15991.79 0.35%
TSX-V 798.77 0.00%

Resource Commodities

Name Last Change
Gold 1295.20 1.28%
Silver 17.29 1.21%
Copper 3.04 0.18%
Platinum 954.00 1.77%
Oil 55.14 0.34%
Natural Gas 3.05 0.88%
Uranium 24.25 N/A
Zinc 1.45 0.00%

@RSDigest ON TWITTER

Part of the Stock Digest family of websites
Small Cap Stock Digest