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.”
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