by Marin Katusa, Casey Research:
The spot price of uranium has again decreased this past week, causing many speculators and investors in the uranium sector to question their positions.
Uranium Participation Corp (U.TO) is actually trading higher than its Net Asset Value (NAV), which means the company as a whole is trading at a premium to what it would be worth if all the U3O8 and UF6 were sold at spot and distributed to its shareholders. Investors paying a premium for U.TO shares expect an increase in the price of uranium, but the opposite has occurred in the last few weeks—as of March 31, the spot price is now US$34.70 per pound.
Why Isn’t Uranium Going Up?
By all rights, uranium should be soaring.
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