Geiger Counter
Limited
Monthly
Investor Report - June
The full monthly factsheet is now
available on the Company's website and a summary can be found
below.
NCIM - Geiger Counter Ltd
- Fund Page for Geiger Counter Ltd
Enquiries:
For the Investment Manager
CQS (UK) LLP
Craig Cleland
0207 201 5368
For the Company Secretary and
Administrator
R&H Fund Services (Jersey)
Limited
|
Jane De Barros
|
T :+44 (0) 1534 825 259
|
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Fund
Description
The objective of Geiger Counter
Limited is to provide investors with the potential for capital
growth through investment primarily in the securities of companies
involved in the exploration, development and production of energy,
predominantly within the uranium industry. Up to 30% of the value
of the Company's investment portfolio may be invested in other
resource-related companies from outside the energy
sector.
Portfolio Managers
Keith Watson and Robert
Crayfourd
Key
Advantages for the Investor
• Access to
mining assets in the uranium sector
• May
benefit from embedded subscription share
• Low
correlation to major asset classes
Key
Fund Facts1
Total Gross Assets
|
£100.3m
|
Reference Currency
|
GBP
|
Ordinary Shares:
|
|
Net Asset Value
|
62.97p
|
Mid-Market Price
|
49.50p
|
Gearing
|
12.84%
|
Discount
|
(21.39%)
|
Ordinary Share and NAV Performance
|
One Month
|
Three
Months
|
One Year
|
Three Years
|
Five Years
|
|
(%)
|
(%)
|
(%)
|
(%)
|
(%)
|
NAV
|
(13.19)
|
(11.68)
|
42.56
|
63.26
|
229.17
|
Share
Price
|
(6.07)
|
(1.00)
|
33.78
|
27.25
|
161.90
|
Commentary
In June the price of U3O8 (uranium
oxide) decreased by 3%, finishing the month at $85.5/lb. Amid this
backdrop, uranium equities showed pronounced weakness. The
Company's NAV declined by 13.2%, closely mirroring the 12.8% drop
in the Sprott Uranium Miners ETF (in sterling terms) and the 9.8%
decline of the Solactive Uranium Pure Play Index. Even
physically-backed uranium vehicles underperformed the uranium price
with both Sprott Physical Uranium Trust and Yellow Cake
experiencing share price declines of 10% over the month.
Sentiment remained subdued despite
favourable steps being taken to support the industry. Notably,
following legislation signed into law in May, the US announced a
$2.7 billion package to finance the purchase of domestically
enriched uranium, aiming to encourage investment within the
country. This initiative should accelerate the pick-up in utility
buying of US origin material, which held a limited 5% share in
2023.
Elsewhere, the newly installed
military government in Niger revoked the uranium mining licenses of
France's state-owned Orano, which was in the process of resuming
development of the Imouraren project. While this may stall future
output from the proposed mine, it also raises the possibility of
similar decisions affecting Orano's operating mine. Niger appears
to be strengthening ties with Russia, with Rosatom potentially in
line to be awarded licenses in the country. Although Niger's share
of uranium production has been declining, this action will further
encourage Western buyers to source supply from less risky
jurisdictions.
Meanwhile, in the background, public
opinion towards the sector in western markets continues to improve.
Recent surveys undertaken in the US and Australia show growing
support for the industry, a process which we believe will further
encourage political momentum for wider inclusion of nuclear energy
- particularly in Australia which has banned nuclear power
generation since 1998.This public opinion may also lead to a
reconsideration of the current prohibition on uranium mining in US
states, such as Virginia, and in Western Australia. This could
benefit companies such as IsoEnergy and Laramide that own assets in
these locations.
Nexgen announced that the Canadian
Nuclear Safety Commission had accepted their responses to the
remaining technical review comments on the revised Federal EIS
development of the Rook I project in the Athabasca Basin. This
allows for a final 60-day technical review ahead of the hearing
process. Cost inflation, together with the incorporation of
incremental water management costs, is mooted to increase capital
expenditures up to CAD$2bn, an increase from the CAD$1.3bn
estimated in the 2021 feasibility study. Much of this news appears
to have been digested and the shares performed in line with the
broader sector. A revised economic update is expected later this
year.
CQS (UK) LLP
4th Floor, One Strand, London WC2N
5HR, United Kingdom
T: +44 (0) 20 7201 6900 | F: +44 (0)
20 7201 1200
CQS (US), LLC
152 West 57th Street, 40th Floor,
New York, NY 10019, US
T: +1 212 259 2900 | F: +1 212 259
2699
Tavistock Communications
18 St. Swithin's Lane, London EC4N
8AD
T: +44 20 7920 3150
| geigercounter@tavistock.co.uk