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Geiger Counter Limited – Enriched prospects

A commitment to quadruple nuclear generating capacity in the US, made by President Donald Trump in a series of executive orders signed at the end of May, has provided a significant and much-needed boost to the uranium sector, in which Geiger Counter (GCL) invests. A number of uranium stocks rose by double figures in the days following the pledge to “re-establish the US as a global leader in nuclear energy”.

Investor sentiment towards the sector had been waning prior to this, with a number of factors combining to put downward pressure on GCL’s net asset value (NAV) (which we explore on page 4). In reality, this was in stark contrast to the fundamentals of the uranium market, which is displaying both demand-side expansion (increasing energy needs, especially from countries seeking lower-emission baseload power) and supply-side constraints. The expertise and long-term track record of GCL’s manager, along with the extremely positive market fundamentals, make it an opportune time to invest in the company.