The new year begins on a very promising note, with the performance of our stock selection for the month of January is +16%.
It is important to note that the uranium mining sector has shown a notable outperformance compared to the MSCI index over the past three years, regardless of the period considered:
% YTD 1Y 2Y 3Y
BLA selection +16.0 +16.3 +84.1 +226.1
MSCI Total Return +7.1 -7.5 +7.9 +24.5
During the past few days, BMO, Scotia, Raymond James, and Goldman Sachs have all been sending out very positive messages about uranium, repeating all arguments we’ve been making for months, if not years. If new money start pouring into the Sprott Physical Uranium Trust (SPUT), the effect on the spot price, whose volume is still small, will undoubtedly be spectacular, with extremely positive impact on the value of uranium mining stocks.
Finally, Cameco Corp. a leader in the sector has announced an agreement with Energoatom the operator of Ukrainian nuclear power plants. The contract has the potential to be the largest U308 supply contract in the company history.