Mickey Fulp: Now is “Absolutely” the Time for Uranium

TL;DR

Mining stocks are considered speculation rather than investment because mining companies have not been profitable for shareholders over the past 15 years, despite a bull market for gold. However, speculating in exploration companies rather than mining companies may be a viable option.

Transcript

the investing network and here today with me it's mercenary geologist Miki fault thanks so much for coming today thanks a lot charlie of course and we're here at PDAC very exciting you spoke earlier today about why you don't own mining stocks you made the distinction between speculating and investing and suggested that mining is usually a speculati... Read More

Key Insights

• 🖤 Mining stocks are considered speculation rather than investment due to their lack of profitability for shareholders.
• 🔬 Exploration companies should be speculated on instead of investing in mining companies.
• 📣 Mega mergers in the mining industry are unlikely to benefit shareholders.
• 🥺 There may be a uranium shortage in the future, leading to increased demand and price.
• 🉐 The uranium market is complex and difficult for average retail investors to gain insight into.
• 🚙 The US may require 25% of uranium used by utilities to be domestically mined, which could benefit US producers.
• 🤘 The base metal complex, especially copper, has compelling supply-demand fundamentals, but is currently impacted by US-China trade tariffs.

Questions & Answers

Q: Why does the speaker believe mining is not an investment?

The speaker argues that mining is not an investment because it does not provide recurring profits over time. Mining companies have been unprofitable for shareholders in the past 15 years, even during a bull market for gold.

Q: What is the difference between exploration companies and mining companies?

Exploration companies are focused on finding mineral deposits, while mining companies are involved in the extraction and production of minerals. The speaker suggests speculating in exploration companies instead of investing in mining companies.

Q: Do mega mergers in the mining industry benefit shareholders?

The speaker is critical of mega mergers in the mining industry, stating that they have not rewarded shareholders in the past. The business model of growth does not align with the value-focused nature of the mining industry.

Q: Will there be a uranium shortage in the future?

The speaker believes there will be a uranium shortage at some point, leading to an increase in demand and price. However, the timing is uncertain, and it is difficult to predict when it will occur.

Summary & Key Takeaways

• The speaker argues that mining is not an investment because it does not provide recurring profits over time. Mining companies have been unprofitable for shareholders in the past 15 years, even during a bull market for gold.

• Exploration companies should be speculated on instead of investing in mining companies. The majority of companies at the PDAC conference are exploration companies that will likely never produce anything.

• Mega mergers in the mining industry are unlikely to reward shareholders or change the fact that mining is a value industry, not a growth industry.