'As cheap as I've ever seen them' - Rick Rule on beaten up resource stocks

Описание: The good news for uranium companies is set to continue, said Rick Rule, president and CEO of Rule Investment Media.

Rule spoke to Kitco on Tuesday. Last year Rule retired from executive and management roles at Sprott.

Renewed focus on decarbonization and high energy prices have rejuvenated the uranium sector. Year-to-date uranium bellwether Cameco is up 29%, and Sprott Physical Uranium Trust has gained 13%. Last week Japanese Prime Minister Fumio Kishida said the country will restart more idled nuclear plants and look at developing next-generation reactors, nearly a decade after the Fukushima disaster put the sector on its heels.

While uranium is up, much of the resource space is trading down. The GDX, an index of gold miners, is down 13% year-to-date.

"I think the malaise that you see in other resource sectors was a malaise that affected uranium for a very long time," said Rule. "I believe that the good news in uranium continues particularly with Japanese restarts. It's a material that generates base load power without producing carbon."

The beaten up precious metal space has compelling valuation, said Rule.

"Gold stocks relative to their net present value at current gold prices are as cheap as I've ever seen them in my career."

Follow Michael McCrae on Twitter: @michaelmccrae (  / michaelmccrae  )
Follow Kitco Mining on Twitter: @KitcoMining (  / kitcomining  )
Instagram:   / kitcomining  
LinkedIn:   / kitco-mining  
Facebook:   / kitcomining  

0:20 - Rick, there has been a lot of blood on the floor in the resource space. Uranium stand out. I see Cameco up 29% year to date. Sprott Physical Uranium Trust up 13%. It seems that uranium has just had a string of good news.
1:11 - Precious metal juniors have been awful. The GDX is down 21% for the year. It had that big move at the start of the year on the Ukraine-Russian crisis, but gave it all back.
4:05 - Let’s go to macro. Jerome Powell's hawkish statement at Jackson Hole sent markets lower. What big economic news are you looking for and how is that going to impact the resource sector?
Rick, why are you paying attention to credit markets?
5:06 - Is commodities the best of a bad lot? Equities are going to be hurting, according to Goldman Sachs.
6:30 - You said in a note that you like the micro caps.
8:15 - Any commodity group you like to focus on?
9:30 - How do you speculate on juniors and battery metals? There is no end of metals. Each that has its time in the sun before substitution. Do you wade in or do you throw up your hands and just buy copper?
11:13 - Is the U.S. a hard place to mine? I think of Hudbay’s Rosemont in Arizona and Twin Metals in Minnesota.
12: 05 - Let's finish with some good news. In another interview you said there was a diverse crowd at your annual resource conference, which you moved from Vancouver to Boca Raton. What's going on?