Marin Katusa opines that he has looked at lots of uranium projects around the world. Most of which he says, “Will never, ever get into production.” [but he is not a geologist and does not have a basis for making such claims ...even if they are true]. When markets get euphoric many of these old projects will be promoted, and while they may have pounds in the ground, they will never be mines. Don’t put any money in European or non-producing areas of Africa in the next cycle. You want to expose yourself to cash-flow and royalties.[Yes, these are the risks, among others, but he is not qualified to practice geology in a public forum. Remember, he is a salesman].
He discusses his “short report” on uranium and how he only looked at the United State’s demand picture for uranium. He analyzed reactor shutdowns and how many would likely be built. He only counted those reactors that are financed, permitted and thus under construction. Typically only 10% of planned reactors ever get made. [Here too, he is guessing and has no basis for such claims, and he is now practicing engineering]. He is quite bullish on uranium as the United States is the largest consumer of uranium in the world and yet they produce less than 10% of what they consume. America is very vulnerable. [He should have these opinions].
He cautions that since uranium is so unloved, it’s ten times as difficult to start a uranium mine. Governments and people are afraid of uranium due to misinformation. [All of these statements are BS and incorrect]. Marin likes the royalty and streaming companies and feels every investor should have exposure to them. They take on the least amount of risk and tend to outperform everything else. You want to minimize your downside risks by investing with the best long-term management teams who have weathered the bad times and that have projects in the best jurisdictions. Whenever you invest in a fund or company be sure that they are more invested in it than you.[Pure salesman-speak].
He feels that by the end of 2019 the price should reach $35 to $40 and in 2020 it should be above $40. The move in uranium will likely not happen all at once. (Pure speculation based on the general uranium-price news available to everyone].
Talking Points From This Week’s Episode:
• Good management teams are crucial, and there are very few.....[What does he know about the quality of such teams?]
• Resource investing is a marathon, not a sprint. Don’t buy in all at once.
• Don’t underestimate Kazakhstan and Russia’s role in uranium.
• A lot of the old-time uranium people have now passed away. [In fact, a whole generation of uranium geologists and engineers are now gone, leaving a few older personnel with the knowledge, files, and ability. When the price rises, exploration will start-up again, but the young ones will have to learn how to do uranium exploration from those few remaining older geologists, like myself: https://i2mconsultants.com/downloads/mdcampbell/HGSUraniumRecoveryRealitiesV1.9.pdf ].
• Few people fully understand the uranium business. [Anyone with a little knowledge can "understand" supply and demand, psychological impact, and rational estimates of the pros and cons of the nuclear power industry].
Managed & Built by I2M Consulting, LLC | © 2010-
