The Prime Minister of Kazakhstan studied Capital International equity analyst Corrina Lim and her three colleagues carefully and smiled. Commenting on their visit to most of the major mining regions, he remarked, "I'm impressed – most visitors to this country only go to Astana and Almaty, but you have gone everywhere!"
How might an investment professional uncover insight about a mining corporation? Surely, a thorough read of the company's reports is in order – as is a discussion with the company's management. However, for Corrina and fellow equity analysts Jim Rutherford, Ernie Nutter and Irina Gryhorenko, it also meant a rigorous nine-day research trip to seven locations throughout Kazakhstan, the heart of global uranium production.
Not simply a rustic junket to a spot off the beaten path, this type of on-the-ground research represents the foundation of our investment decisions at Capital. As world-changing trends can begin anywhere, our analysts believe it is crucial to be among the first to understand them – even if it means venturing to far-flung sites to witness these phenomena firsthand.
As a result of the trip to Kazakhstan and a previous trip to Namibia, Corrina and her colleagues were left with several profound insights about the future of uranium. After viewing several mines to determine output and exploring the supply dynamics of uranium, they concluded that future demand will outstrip projected supply, necessitating further exploration and price increases. The analysts ultimately emerged with renewed bullishness in uranium in spite of shorter-term challenges.
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