Marin Katusa: Uranium Series Part 4: Making a Short Case Against Uranium
Marin discusses his travels to many regions where he has looked at lots of projects. Most of which he says, “Will never, ever get into production.” When markets get euphoric many of these old projects will be promoted, and while they may have pounds in the ground, they will never be mines. Don’t put any money in European or non-producing areas of Africa in the next cycle. You want to expose yourself to cash-flow and royalties.
He discusses his “short report” on uranium and how he only looked at the United State’s demand picture for uranium. He analyzed reactor shutdowns and how many would likely be built. He only counted those reactors that are financed, permitted and thus under construction. Typically only 10% of planned reactors ever get made. He is quite bullish on uranium as the United States is the largest consumer of uranium in the world and yet they produce less than 10% of what they consume. America is very vulnerable.
He cautions that since uranium is so unloved, it’s ten times as difficult to start a uranium mine. Governments and people are afraid of uranium due to misinformation.
Marin likes the royalty and streaming companies and feels every investor should have exposure to them. They take on the least amount of risk and tend to outperform everything else. You want to minimize your downside risks by investing with the best long-term management teams who have weathered the bad times and that have projects in the best jurisdictions. Whenever you invest in a fund or company be sure that they are more invested in it than you.
He feels that by the end of 2019 the price should reach $35 to $40 and in 2020 it should be above $40. The move in uranium will likely not happen all at once.
Talking Points From This Week’s Episode
• Good management teams are crucial, and there are very few.
• Resource investing is a marathon, not a sprint. Don’t buy in all at once.
• Don’t underestimate Kazakhstan and Russia’s role in uranium.
• A lot of the old-time uranium people have now passed away.
• Few people fully understand the uranium business.
Marin Katusa founded Katusa Research. He is a professional investor, and his firm focuses on independent investment research. Starting from scratch, Marin has built a large personal fortune through his ability to find great investments. Marin’s insight has been featured in The Wall Street Journal, The New York Times, Bloomberg and CNBC. He has traveled over one million air miles visiting over 500 resource projects in more than 100 countries.
Mr. Marin Katusa, B.Sc., was the Chief Energy Investment Strategist at Casey Research, LLC. Mr. Katusa was the Managing Editor of Casey Energy Confidential, Casey Energy Report and The Colder War Letter at the firm. He also managed a portfolio of international real estate projects, using advanced mathematical skills. He created a resource market tool that analyzed and compares hundreds of investment variables. Earlier, Mr. Katusa was a Mathematics Professor. He was Teacher of Fraser Academy from August 2003 to August 2006. He has been an Independent Director of Copper Mountain Mining Corporation since April 04, 2007. Previously, he served as a Director of Gold Mountain Mining Corporation until July 2011 and Beanstalk Capital Inc. since March 2010. He has extensive relationships within the Canadian financial community.
He has written a book, The Colder War, on Vladimir Putin’s master plan to make Russia a world leader again and what this could mean for everyone’s energy consumption in the decades to come. Mr. Katusa graduated from the University of British Columbia with a Bachelor of Science degree and a Bachelor of Education.