Far East Capital Newsletter
Peninsula Energy is leading the race to new uranium production
11 Sep 2022

In This Issue

Peninsula Energy is leading the race to new uranium production

This week we have taken a break from commenting on short term stock market influences caused by speculation regarding inflation and interests rates. Rather, we have stepped back to look at the bigger picture. Uranium and nuclear power are becoming increasingly important elements in the quest for zero emissions, so we are seeing continuing support for ASX-listed uranium companies. However, having shares in a uranium company doesn't mean you will make money beyond near term speculation. Longer term investors have a smaller range of stocks from which to select. Peninsula Energy is one of the few companies that offer opportunity in both time frames so we have provided an update on that company.

We are going through monetary tightening and there is increasing speculation that we will transition into a recessionary period, which traditionally causes a softening of metal prices. However, there are more recent influences at work that mean the traditional methods of analysing mining stocks are less relevant. Think the alternative energy push and global political power struggles. These are the new imperatives that we have to take into account in looking at future movements in mining and resource stocks. 

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