Global Atomic

I speculated on Global Atomic as a pre-production sweet spot play in the uranium space. The trade was doing well (I was in the black) until the coup d'etat hit Niger, where the company's Dasa uranium project is. The stock fell off a cliff, resulting in my biggest loss to date at The Independent Speculator.

Note that I decided to sell the moment the news came across the wire because this wasn't just scary news from Africa, but news that makes it all but impossible for the company to raise the rest of the money it needs to build Dasa. However, it's our policy to give clients a three-day head start before we sell, they got out at much better prices than I did.

Despite the substantial loss, I'm not beating myself up over this one. The PPSS thesis was sound. Niger had been regarded as one of the better mining jurisdictions in Africa—a Western ally that was relatively safe. I can't say I'm particularly eager to invest in other Africa plays anytime soon, but if offered a deep enough discount in a place without a recent history of violence, I might be persuaded to give it another go.

I am a speculator, after all.