Yesterday I received reports that uranium U308 spot prices stood at $39.25 per pound as of March 2, 2015. This is a ferocious recovery from the lows of $28.00 in the middle of last year; a rally of 40%.
We are still at least another 50% short of where uranium spot was trading when the Fukushima reactor melted down. Still, this price recovery is constructive.
The recovery in uranium miners has taken longer than I expected. Certainly I was aware that this might happen, but I took early positioning because I figured there were better odds of the market pricing in a recovery early on. Instead, fearing the “Chernobyl Syndrome”, the market curled up into a fetal position and didn’t move for four years.
I remain long CCJ and, despite being very disappointed with the short sighted antics of their upper management, am willing to continue holding out for gains. CCJ’s operations continue to perform beyond reasonable expectations, all things considered.
After CCJ hits $30, I will donate a portion of the proceeds to the Canadian tax agency to offset the cost of chaining their Board of Directors and tossing them into a pit of despair.