The Energy Report
Notable Quotes
"With the LOI signed, we urge investors to bolster positions in FCU." (12/22/15) Fission Uranium Corp. - David Sadowski, Raymond James More >
"FCU is taking the right steps regardless of whether PLS is ultimately acquired or developed into a mine." (12/22/15) Fission Uranium Corp. - Heiko Ihle, Rodman & Renshaw More >
"I am quite excited about POE in 2016." (12/16/15) Pan Orient Energy Corp. - Chen Lin, What Is Chen Buying? What Is Chen Selling? More >
"BKX's Oklahoma asset has significant value." (12/16/15) BNK Petroleum Inc. - Michael Charlton, iA Securities More >
"EFR is one of the few companies in a position to write long-term sales contracts and deliver into them at several times its current production rate." (12/17/15) Energy Fuels Inc. - The Gold Report Interview with Eric Coffin More >
Long-Time Long-Term!
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GEORDIE MARK, Haywood Securities
(07/28/2010)
As the absolute spread decreases, the opportunity for convergence trades decreases. The week: UxC U3O8 Spot Price starts the week up US$4.25, adding to last week's small uptick, while uranium funds increased by a slightly greater amount, on average, on an asset value-weighted basis, tightening the Spot:FIP (Fund Implied Price) spread, with the FIP of uranium below Spot Monday. The Spot:FIP spread has decreased in absolute terms, as it moved from $1.33 to $1.21, still above its recent average in absolute terms. This week's moving average of $0.12 The Spot:FIP spread remained in positive territory (Spot > FIP). A positive Spot:FIP spread means unencumbered physical uranium held in funds is, on average, priced below the prevailing Spot market value. Negative FIP spreads have historically been a bullish indicator for the Spot Price, and we note that for much of June, ahead of the current rally in spot price, the Spot:FIP was negative. We note the SPOT:T&P FIP spread was positive Monday. Our U-T FIP estimate is currently below Spot and BAP (Broker Average Price). We continue to see opportunity in uranium funds that are trading below their net asset values. Our TSX:U (target C$7.50) NAV shows a FIP (Jul 26) of US#1.93 below Spot ($42.13 or $0.48 above Spot (Jul 190)) |
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Under SEC rules, analysts are required to disclose their interest in securities that they cover. We strongly encourage you to contact them to understand any potential conflicts of interest they may have.
More Experts
"FCU's deal with CGN helps to financially and technically derisk PLS." (12/21/15) Fission Uranium Corp. - David Talbot, More >
"NXE is our top pick across all commodities." (12/22/15) NexGen Energy Ltd. - The Energy Report Interview with Rob Chang More >
"FCU will continue to explore and add pounds to what is already a world-class project." (12/22/15) Fission Uranium Corp. - The Energy Report Interview with Rob Chang More >
"EFR is well positioned to benefit from higher uranium prices." (12/22/15) Energy Fuels Inc. - The Energy Report Interview with Rob Chang More >
"FCU intends to sell $82M or 19.9% of the company to CGN Mining." (12/22/15) Fission Uranium Corp. - Jeb Handwerger, Gold Stock Trades More >