Kerrisdale takes short position in Uranium Energy, shares fall (updated)
23/03/2023 14:03
(Adds details from the report, updates shares)
March 23 (Reuters) - Kerrisdale Capital said on Thursday
that it had built a short position in Uranium Energy Corp
UEC.A , sending the miner's shares down more than 6%.
The short seller said in a report that the company had
failed to exploit a spike in uranium prices during the last two
bull markets.
"While we're presently optimistic on uranium prices and
believe that they need to rise to meet continued demand growth,
we don't expect UEC - or its shareholders - to be any more
successful this time around," Kerrisdale said.
Uranium Energy did not immediately respond to a request for
comment.
Kerrisdale added that of the company's stated 140
million pounds of estimated uranium resources in the United
States, none can be mined profitably at current prices.
"Only about a quarter of the resources will be
economically viable even at the much higher uranium prices."
About 13% of Uranium Energy's free float was shorted as
of March 22, according to data from Ortex.
(Reporting by Arunima Kumar in Bengaluru; Editing by Sriraj
Kalluvila and Anil D'Silva)
((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94
;))