PEN 4.55% 10.5¢ peninsula energy limited

Uncertainty Lingers - Chill out

  1. 85 Posts.
    lightbulb Created with Sketch. 87
    https://www.fnarena.com/index.php/2020/01/28/uranium-week-uncertainty-lingers/

    This article pretty well highlights the state of play at present. It is amazing how small volumes can drive prices down, but of course the reverse is true when the right catalyst appears.

    No one likes to see price weekness and unless you need to sell just chill....the fundamentals of the Uranium sector are solid and supply does not meet demand, plus it gets worse from here on, signifcantly worse and over many years and no possible sign of new mine development to fill the gap!

    The USA has to address the security of U308 supply and I am confident POTUS will announce some significant measures.....like others I have no idea when. The signs and rumours are even stronger now that an announcement is extremely close. In addition there are other catalysts that could turn this market and invester confidence not least Cameco's earning call on 7th February. Cameco has always been regarded as the front runner and an indicator of market movement, their last Q3 earnings call they advised that contracting discussions were back at 2010/11 levels this conference call I would not be surprised to hear LT contracts are being discussed maybe even signed now between the $4-$5 handle.

    PEN is IMO still in an enviable position the opportunity far out ways the risk and like I said unless you need to sell hold and just chill out.

    Other factors like the Coronvavirus are more worrying than Uranium fundamentals and we can see how markets world wide can move significantly with those effected most by the turmoil like airlines, tourism etc. taking the largest hit. Above all we must all hope the virus is contained and lives are saved.

    I remain calm because I am patient, still very much a contrarian and believe in the fundamentals of supply and demand in the Uranium space. Utilities have no option but to buy...it is a no brainer buy or the lights go out. When they buy depends on when the levels of uncertainty are lifted...but 100% guaranteed they will buy. The longer we wait the stronger the move up. There are few Uranium producers able to switch on production particularly in the USA where demand from utilities is becoming crtical....they simply have to begin contracting very soon and PEN is IMO better placed than many to benefit with any remotely positive NFWG action, the many being only 3 producers able to produce now.

    These are tough global times and it takes nerves of steel to sit it out but when I look back over the years of the Uranium sector I am more confident of significant gains to the upside in the short term than the risks of further downside. GLA keep safe and look forward to better days ahead.
 
watchlist Created with Sketch. Add PEN (ASX) to my watchlist
(20min delay)
Last
10.5¢
Change
-0.005(4.55%)
Mkt cap ! $93.80M
Open High Low Value Volume
10.5¢ 11.0¢ 10.0¢ $1.170M 11.16M

Buyers (Bids)

No. Vol. Price($)
114 6002027 10.0¢
 

Sellers (Offers)

Price($) Vol. No.
10.5¢ 267532 1
View Market Depth
Last trade - 16.10pm 05/03/2021 (20 minute delay) ?
(live)
Last
10.3¢
  Change
-0.005 ( 5.96 %)
Open High Low Volume
10.8¢ 11.0¢ 10.0¢ 4767413
Last updated 15.59pm 05/03/2021 (live) ?
PEN (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.