Regards,
Jim
Right now, uranium shipments from Russia are 'stalled' after Russia pulled the export licence for a company that ships to the US. We agree that tensions are likely to remain. Russia accounts for 40% of global supply. The US 'technically' banned Russia uranium this year, but has been lax on monitoring (likely on purpose). CCO has a joint venture with a Kazkhstan company. The Kazkstan has had some production issues and curtailments. However, we are not so sure CCO would be material impacted because the country's issues may simply cause global prices to rise further, and CCO benefits from that. It has hedges, though, and often needs to buy in the market to meet these. This is a general negative to CCO and investors don't like the hedges of course when prices are rising. All in, we think the global trend to nuclear will outweigh the political issues, which could (maybe) be short term. In other words, if an investor wants sector exposure we would remain comfortable buying CCO.