Interview with Brandon Munro, CEO of Bannerman Resources (ASX:BMN) A detailed response to the question, 'Last year was another uranium trainwreck. What is happening?'
Uranium investors are desperate for some good news; it's been all too long since they heard any. However, Munro explains in this interview that beneath a surface of squalor lie plenty of reasons for investors to feel a little more chirpy. However, there are also some reasons investors need to stay grounded.
If investors buy into the uranium macro story, they simply need to keep their faith. Munro argues all the uranium market requires is a sentiment shift in order for investors to begin seeing results. However, there are a few more substantial pieces of verifiable information; there are signs of things moving behind the scenes, and indications spot price could decide to awake from its prolonged slumber. Industry insiders claim UF6 reserves, held by utility companies, are all but gone. EUP conversion price has risen by 400%, unbeknownst to many investors. The price of uranium enrichment has also risen from US$30 to a more sizable US$50.
The information presented by Munro is positive for investors, but let's stay calm and pragmatic. Nothing has changed just yet. Additionally, Munro, like many industry experts, explains uranium is very unlikely to reach the US$150/lb peaks of the previous cycle. Instead, a sharp peak of US$90/lb is seen as more feasible, followed by a fall back to a stable and consistent US$50-60/lb. There is no nuclear renaissance hype in the present day to drive prices to their previous highs.
Munro also touches on some issues that have been doing the rounds in the Crux community as of late, specifically the Sahel terror situation and the disastrous impact it is having on some mining companies.
Bannerman Resources itself hasn't seen a great deal of share price movement this year, but Munro claims it is primed for growth in an imminent bull market, given its strong, experienced management team and solid portfolio of assets in favourable jurisdictions.
What did you make of Brandon Munro? Do you believe uranium is really seeing any movement? What has Bannerman Resources got that other uranium juniors don't? Comment below and we may ask your question in the near future.
And a FREE 'Not A Mug' Crux Investor mug to the first person to guess the song name and artist featured in the title of this video! (One mug per person). This tune is a belter.
1:36 - Difficult 2019, What's to Come in 2020?
3:26 - Uranium Inventories: A Historical Overview & Problems Arising
9:51 - Markers for Investors: When is the Market Going to Recover?
17:13 - Joint Comprehensive Plan of Action: What's Changing in the Geopolitical World?
24:03 - How will Political Turmoil Affect the Uranium Market?
30:36 - Return of the Peaks: How Quickly Could it Happen and is it Outright Possible?
36:33 - Future for Uranium Juniors
38:51 - A Look into Bannerman: Importance of a Seasoned Team and a Mining-Friendly Jurisdiction
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