David Sadowski advises the investor to take advantage of the temporary bear market in uranium juniors. The Raymond James mining analyst explains why uranium prices are low and why they will rise in the medium term. In past interviews with Streetwise Reports, Sadowski predicted that the price of uranium will rise this year. But that has not panned out. He reported that there is a short-term supply problem in the uranium industry. He has concluded, however, in the long term, supply will not be able to keep up with demand growth. The point at which we previously expected demand to outstrip supply has been pushed out by a couple of years. That development has impacted the price in recent months, as well as Raymond James outlook for the price going forward.
The three main reasons for continued global growth of uranium mine production are the persistence of long-term fixed-price sales contracts, the intransigence of government producers who believe that security of supply is more important than mine economics, and byproduct uranium production. Secondary supply sources also remain robust.
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