Marin Katusa’s Warning to Uranium Investors

This video presents Marin Katusa’s warning to uranium investors regarding which jurisdictions he considers unsafe and which he recommends. Marin Katusa is a professional investor and founder of Katusa Research, an independent investment research firm specializing in the natural resource sector. Marin currently considers uranium to be the ultimate contrarian play for the natural resource speculator.

Assessing the jurisdiction of a mining company before investing is crucial for the investor. The ideal jurisdiction is a safe and politically stable country with low tax rates. Unlike other industries which can choose to relocate their business, a mining company cannot relocate their mineral deposit. Therefore, if a government becomes unfriendly or too burdensome to the mining company or the host nation becomes unsafe, the company and its investors can lose most or all of the value of their mineral deposit in that country.

The following quote by Marin Katusa comes from a February 8th, 2017 interview with Frank Curzio:

“I want to warn all your viewers: don’t waste your time in any nation where the Chinese or Russians have an influence. The laws the Chinese and Russian companies follow are very different than the American company laws. So don’t even bother. We are showing up to a gun fight with chop sticks. So don’t even bother. Stay focused where our rule of law matters. I wouldn’t touch any uranium in Europe. I wouldn’t touch it in Africa or Central Asia. Or Eurasia–I wouldn’t bother. The Russians have a grasp…the Chinese have a grasp in those regions. Stick to two regions in my opinion: North America and there are certain countries in South America. But really where grade is king, the Athabasca basin, and where it is low-cost production for domestic demand…You want to be in the low-cost quartile and the top quartile of grade.”

Also, see our interview with Daniel Major, CEO of Goviex Uranium, an Africa-focused Uranium company, where he discusses concerns about Africa as a jurisdication and specifically addresses Marin’s objection: https://www.youtube.com/watch?v=n1wGHyp3CeY