Q: Uranium stocks were up today because of Tax in Kazistan How much was tax, How do other Uranium Companies benefit Will Kazistan not produce as much Uranium in Future that will help other world producers NXE your thoughts as well as other Uranium Companies please , RAK
5i Research Answer:
Higher taxes will stem production growth, as companies will be less willing to produce more metal due to lower net margins after the tax. The tax is linked to production, and the proposal calls for 18% vs 6% now. There is also an additional 2.5% tax on uranium prices. The sector rose nicely yesterday as the move will likely benefit all other producers by restricting Kazak supply.