I'm latecomer to investing in this Uranium boom. I've jumped on the bandwagon and thrown in a few $k to help keep your portfolios in triple digit % increases. How nice of me!!!
In turn it would be appreciated if you guys could brainstorm with me about this boom please, so I can learn a thing or two. Please excuse my lack of expertise :
These days it seems as though every man with a shovel and a bit of dirt is exploring for Uranium. Okay! It's an unashamed exaggeration, but I hope you get what I mean.
Fast forward 2,3,4 years into the future when many of these companies have carried out their exploration/drilling, and are now constructing mines, started production. Surely the situation now will be that there is so much Uranium being produced that even China and India will be well fed.
Doesn't this mean that the price of Uranium will be substantially lower than it is today?
Well not according the the bullish nature of many posters on some forums.I don't understand why people are measuring the future profitability of a Uranium miner on how much resource they have buried under the ground. Surely the economic factors of supply/demand is just as, if not more important than the buried resource factor.
A lot of these feasability studies are coming back with mining costs of 20-30$ per lb. Can somebody point me in the direction of realistic P&L forecasts of any of these companies taking into account economic factors?
I get the impression that this boom is a case of super growth for the next couple of years, then serious correction once supply meets demand, followed by steady sensible growth afterwards.
Or am I missing something?