Buy 13/12/2023
Betashares Uranium ETF (URNM)
*** GENERAL ADVICE ONLY ***
Description
Industry: Energy ETF
URNM provides exposure to leading global companies involved in the mining, exploration, development and production of uranium, modern nuclear energy, or that hold physical uranium or uranium royalties
About URNM ETF
Market Cap: $86M
Yield: 0.04%
Trade - Buy 4%
Allocation: 4%
Entry: <$9.00
Target: $12
Stop: $7.50 (16% Trailing)
Catalyst
URNM -> Buy 4%
Similar to the early days of the lithium rally, those companies that correctly precited a commodity shortage or supply gap will be big winners no matter where the stock market ends up in 2024. Despite the sector making solid gains this year, should Uranium stocks follow the same pattern as the lithium rally, 2024 could be the year.
Spot Lithium had its first big up year in 2021, rallying around 90%+, but from December 2021, lithium supply gaps caused a price squeeze that topped out 300% higher during 2022 as the ASX went into a lithium frenzy.
The price of Uranium has risen 60% in 2023, rising from $50 a pound to over $80 a pound, a modest gain compared to the 2021 lithium rally. Uranium is in high demand, thanks to its role in clean energy transition and with 22 nations, representing 43% of the global economy, recently committing to tripling their nuclear power over the next 25 years, we are expecting the rally in uranium to continue.
Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.