Register Log-in Investor Type

Geiger Counter suffers despite rising Uranium prices

Geiger Counter reported a 43% fall in its NAV over the year that ended on 30 September 2015 – in line with the fall in the URA Uranium Equity ETF. A large part of the fall in the ETF price though relates to a widening discount as, they say, the discount on the physically-backed uranium ETF, Uranium Participation, widened from 3.7% to approximately 21%. The price of the underlying metal rose by 2.5% in US dollar terms and 10% in sterling terms however.

The manager says lower cost producers, such as US in-situ recovery operators, having initially shown robust performance subsequently slipped back in-line with other the sector constituents. The Fund’s holding of UEC was sold. UEC briefly approached US$3 per share, exceeding their group valuation over the summer. Impressive assay results were posted by explorers Nexgen and Berkeley Resources, whose share prices increased 30% and 20% respectively in sterling terms over the year. The Fund retained its position in Hong-Kong-listed China Guangdong Nuclear Power, which they believe may benefit disproportionately from China’s huge domestic nuclear roll-out programme. It may also deploy its technology to compete effectively against international service provides such as Areva, with its recent successful participation in the UK’s Hinkley Point project endorsing its credentials.

GCL : Geiger Counter suffers despite rising Uranium prices

Leave a Reply

Your email address will not be published. Required fields are marked *

Please review our cookie, privacy & data protection and terms and conditions policies and, if you accept, please select your place of residence and whether you are a private or professional investor.

You live in…

You are a…