Aspiring uranium producers Bannerman Resources and Deep Yellow were reviewed in the latest PortfolioDirect rating report

John Robertson

PortfolioDirect

Aspiring uranium producers Bannerman Resources and Deep Yellow were reviewed in the latest PortfolioDirect rating report. Both face the possibility that uranium prices high enough to support new mine production could still be years away. There is a tendency for commodity linked equity markets to anticipate several recoveries in the latter stages of a cyclical trough for every one that occurs as the balance of risks changes. Also, some of the uranium market drivers (e.g. a restart of power plants in Japan and new plants in the middle east) are more diverse than those for metals like iron ore and copper which rely heavily on Chinese macroeconomic outcomes. For risk management purposes, these features could warrant some uranium portfolio exposure through BMN and DYL. However, for the time being, investors should assume share price gains could prove fleeting until a full scale cyclical improvement begins.


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John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...

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