RBC says Uranium Bull Market Thriving and Forecasts Average $100/lb

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The analysts suggest the two best strategies that a uranium producer or developer can use to drive shareholder returns are "becoming a producer and positioning the company for acquisition..."

An RBC Capital Markets research report released last month asserts that uranium remains in the middle of a bull market, with an average price of $100/lb forecast for this year.

In their report, "Investing in Uranium Companies," RBC provides a good introduction to the mining sector, which is applicable to a broader range of hardrock minerals and metals.

RBC's analysis asserts that a supply-gap will exist in uranium after 2013.

The analysts suggest the two best strategies that a uranium producer or developer can use to drive shareholder returns are "becoming a producer and positioning the company for acquisition...

RBC uses a formula of forward earnings per share (EPS) or CFPS multiples to reflect the valuation of uranium companies with existing operations. For those developing new projects, the analysts use a net asset value (NAV) approach. "For exploration companies where it is too early to calculate an NAV, we look to the enterprise value per pound of U308 (EV/lb) in resources."

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