• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 4 hours Could Venezuela become a net oil importer?
  • 1 hour Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 8 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 13 hours Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 4 hours Gazprom Exports to EU Hit Record
  • 8 hours Why is permian oil "locked in" when refineries abound?
  • 6 hours EU Leaders Set To Prolong Russia Sanctions Again
  • 4 hours Oil Buyers Club
  • 4 hours Could oil demand collapse rapidly? Yup, sure could.
  • 6 hours Oil prices going down
  • 2 hours Saudi Arabia turns to solar
  • 1 day Teapots Cut U.S. Oil Shipments
  • 21 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 7 hours EVs Could Help Coal Demand
  • 14 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 1 day Hot line, Macron: Phone Calls With Trump Are Like Sausages Best Not To Know What Is Inside
Alt Text

Turbulent Times For The Copper Markets

News from Latin America is…

Alt Text

EPA Rule Creates Multi Billion Market For This Tech

New regulations for coal-fired plants…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

The Opportunity In This Metal Is Obvious

Every investor talks about how commodities are cyclical. But few take advantage of this fact.

It's certainly true that throughout history most commodities have swung from boom to bust.  Which means that buying busts has been a reliable strategy for profits.

And judging from news last week, we're certainly in a bust for one metal: uranium.

Reports emerged of another high-profile mine shutdown in the sector. With junior producer Paladin Energy announcing it will suspend output from its Kayelekera mine in Malawi.

The firm noted that the rationale for the closure is simple. The mine simply wasn't making any profit at today's low uranium prices. Even after a slew of cost-cutting measures were implemented over the past several months.

The overall loss of output from Kayelekera is small. At around 0.5 to 0.7 million pounds of U3O8 yearly. But the closure is yet another sign of how badly the uranium business is hurting at current prices.

This follows on a string of other announced project delays and shutdowns in the sector. With even top-producing nation Kazakhstan saying it will delay any new mining projects, because the financial returns simply aren't there in today's environment.

It's simple logic that when these sorts of closures start to happen--as prices languish at multi-year lows--it's a good sign that an industry is correcting itself. With production losses beginning to cure low prices, and set the stage for a rebound.

It won't happen overnight. But these sorts of events are glaring indicators that the market probably isn't going much lower from here. Making this a lower-risk time to buy good companies and projects, in preparation for the recovery.

Years out, we'll look back on this time and say, "It was obvious things had to get better." We'll see who actually puts that insight into action, and turns a profit on this down market.
Here's to buying the bust,

By Dave Forest




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News