How to be patient

Fission Uranium Corp.

A couple of years ago I was looking for a uranium explorer. I wanted exposure to Saskatchewan's Athabasca Basin which is loaded with uranium. I also wanted a company which was trading for pennies rather than dollars.

Fission Uranium (FCU.T) caught my interest. It was trading at less than $0.30 and had a plausible exploration program in the Athabasca Basin. So I bought some shares and sat down to wait a couple of years for the drilling programs to bring in their results. It was not a huge position and I thought the risk-return ratio would be worth the wait.

I really was not paying much attention to the shares but, in late August 2021, FCU popped from $0.41 to $1.09 in mid-September. I sold half my position.

Which meant I booked a profit while maintaining half my position at zero cost. Risk went to zero.

Since that 2021 run, FCU has popped over $1.00 a couple of more times and currently trades at $0.77.

My own sense is that the uranium story is just getting started. Worldwide demand for uranium is increasing and uranium from “safe” countries like Canada will be in high demand.

FCU jumped $0.11 today. The Financial Post suggests the jump may be because Japan is looking to expand its nuclear fleet. Maybe. But the worldwide demand is growing with China and India both committing to new reactors.

My original idea, buy a uranium explorer, seems to have turned out well.

Now, having booked a profit, I can settle back and wait for a bigger spike in uranium demand and the price of uranium exploration shares. It would be lovely if it happens quickly, but I can, and will wait.

Disclosure: I own shares in Fission Uranium (FCU.T) and may buy more or sell some or all at any time. This is not investment advice. Do your own due diligence.