Daniel Major: Building a Mine In a Uranium Bull Market Is Best Way To Capture Massive Gains
Daniel sees two possibilities with the current uranium market, either slow and steady growth or what looks increasingly likely, that the price remains flat, as utilities fail to buy in, until the price explodes upwards.
Due to Uranium being a commodity and the way pricing is structured, there is a lot of potential energy from the contract market. The buyers still have inventory and contracts, at the same time these contracts are starting to come off fairly quickly. The producers require a price above $40, so contract prices going forward are going to be considerably higher.
During the last market cycle the two companies that did exceptionally well were Energy Fuels and Paladin. These two companies changed from being explorer/developers to producers, GoviEx is positioning to do the same. GoviEx has a big discount relative to it’s peers due to perception, since it’s in Africa, Daniel thinks this sentiment will change.
The companies that deliver on construction during a bull market will produce the highest gains. GoviEx is one of only a few companies that already have permitted projects.
Daniel discusses how GoviEx due to the type of industry and the projects location, is constructing a robust financing package that will attract investment and mitigate risks to debt holders.