Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21
CISCO 2020 Dot com Bubble Stock vs 2021 Bubble Tech Stocks Warning Analysis - 6th Oct 21
Precious Metals Complex Searching for a Bottom - 6th Oct 21
FB, AMZN, NFLX, GOOG, AAPL and FANG+ '5 Waves' Speaks Volumes - 6th Oct 21
Budgies Flying Ability 10 Weeks After wings Clipped, Flight Feathers Cut Grow Back - 6th Oct 21
Why Silver Price Could Crash by 20%! - 5th Oct 21
Will China's Crackdown Send Bitcoin's Price Tumbling? - 5th Oct 21
Natural Gas News: Europe Lacks Supply, So It Turns to Asia - 5th Oct 21
Stock Market Correction: One More Spark to Light the Fire? - 5th Oct 21
Fractal Design Meshify S2, Best PC Case Review, Build Quality, Airflow etc. - 5th Oct 21
Chasing Value with Five More Biotech Stocks for the Long-run - 4th Oct 21
Gold’s Century - While stocks dominated headlines, gold quietly performed - 4th Oct 21
NASDAQ Stock Market Head-n-Shoulders Warns Of Market Weakness – Critical Topping Pattern - 4th Oct 21
US Dollar on plan, attended by the Gold/Silver ratio - 4th Oct 21
Aptorum Group - APM - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 3rd Oct 21
US Close to Hitting the Debt Ceiling: Gold Doesn’t Care - 3rd Oct 21
Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
Original Oculus VR HeadSet Rift Dev Kit v1 Before Facebook Bought Oculus - 3rd Oct 21
Microsoft Stock Valuation 2021 vs 2000 Bubble - Buy Sell or Hold Invest Analysis - 1st Oct 21
How to profit off the Acquisition spree in Fintech Stocks - 1st Oct 21
�� Halloween 2021 TESCO Shopping Before the Next Big Panic Buying! �� - 1st Oct 2
The Guide to Building a Design Portfolio Online - 1st Oct 21
BioDelivery Sciences International - BDSI - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 30th Sep 21
America’s Revolving-Door Politics Behind the Fall of US-Sino Ties - 30th Sep 21
Dovish to Hawkish Fed: Sounds Bearish for Gold - 30th Sep 21
Stock Market Gauntlet to the Fed - 30th Sep 21
Should you include ESG investments in your portfolio? - 30th Sep 21
Takeda - TAK - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 29th Sep 21
Stock Market Wishing Away Inflation - 29th Sep 21
Why Workers Are NOT Returning to Work as Lockdown's End - Wage Slaves Rebellion - 29th Sep 21
UK Fuel PANIC! Fighting at the Petrol Pumps! As Lemmings Create a New Crisis - 29th Sep 21
Gold Could See Tapering as Soon as November! - 29th Sep 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Uranium Stocks to Benefit From Nuclear Power Resurgence

Commodities / Uranium Nov 23, 2012 - 08:47 AM GMT

By: Money_Morning

Commodities

Don Miller writes: Nuclear power is poised to make a comeback, and the spike in uranium demand it will bring over the next few years will send uranium stocks soaring.

While the Fukushima nuclear disaster in Japan in March 2011 stirred a lot of talk about abandoning nuclear power, nations have since come to realize their energy needs can't be met without nuclear being part of the equation.


The Japanese blowout scared the public so badly, in fact, that many governments vowed to severely cut back on nuclear power. Germany said it would quit using it altogether.

But then reality struck.

Major export economies in Europe and Asia have energy-intensive industries that can't just dump nuclear energy overnight.

The best proof that nuclear is not going away is right in Japan, which already has been forced to restart two reactors, and more will be restarted soon.

The Prime Minister of Japan called restarting the reactors a "matter of national survival," because the high cost of imported liquid natural gas was crippling the economy.

And nuclear energy has proven itself to be a safe alternative to the smog-belching coal plants in emerging countries like China and India.

Even oil-rich countries like Saudi Arabia are building new nuclear reactors now -- a clear sign nuclear energy is here to stay.

Simply put, the world not only needs low-cost nuclear power - it needs more, not less of it.

And uranium is the only fuel that can possibly give billions of new consumers in energy-starved countries like India and China the power they need.

Demand Will Drive Uranium Prices
Nuclear power currently provides about 13.5% percent of the world's electricity, and that's likely to grow given the new capacity slated to come online.

A total of 31 nations across the globe have 436 nuclear reactors under production. Globally a total of 95 nuclear reactors are planned over the next two decades with 62 already under construction, according to the World Nuclear Association (WNA).

And each of those plants will use 500,000 pounds of refined yellowcake per year.

But miners can't satisfy the world's current appetite for uranium, much less higher demand in the future.

The WNA has projected 52,221 tons of production in 2012. Meanwhile, uranium demand is expected clock in at around 77,000 tons.

Demand for uranium is expected to jump 7% per year, reaching 110,000 tons by 2017.

Altogether, the planet could come up 400 million pounds short by 2020.

Still, the cost of uranium production means the industry needs to get about $85 per pound to make it worth bringing new mines into production.

But rising demand should take care of that.

"When those supply and demand lines intersect, the only thing that can happen is prices go up," noted natural resources expert Rick Rule recently told The Daily Crux. "If the prices don't go up, the lights will go out."

Fukushima Creates Uranium Stock Opportunity
The Fukushima disaster and all the negative talk that followed sent uranium prices -- and uranium mining stocks -- into a nosedive.

Prices for uranium tumbled to about $41 per pound from $68, according to Ux Consulting.

Uranium stocks suffered accordingly.

The Global X Uranium ETF (NYSEArca: URA), for example, has fallen nearly 23% year-to-date.

But for investors today, that decline is an opportunity.

Despite what happened at Fukushima, the overwhelming appeal of nuclear energy has set the stage for a rebound.

It's only a matter of time before the demand for energy in emerging markets will drive a new nuclear boom.

And with prices at rock-bottom, it's time to put uranium mining stocks on your radar.

Investing in Uranium Stocks
The key question for investors is: when will uranium prices turn around?

Rule says investors with a two- to four-year time frame will be the big winners.

For a pure uranium play, Cameco Corp. (NYSE: CCJ), with its $8.9 billion market cap, is the best of the breed for institutions and small investors alike.

Cameco is one of the world's largest uranium producers, with over 16% of the world's supply. Its McArthur Lake and Cigar Lake deposits are the largest in the world, with over 476 million pounds of proven and probable reserves.

Even though the company just reported weak earnings for the third quarter, analysts are urging investors to scoop up shares on the recent dip.

"We like Cameco on its top producer status...organic growth in safe jurisdictions, healthy balance sheet, vertical integration, and dividend," Raymond James analyst David Sadowski told the Financial Post.

If you're looking for a leveraged play, Denison Mines Corp. (NYSEAMEX: DNN) is a small cap miner with several exploration projects that give it big potential for growth.

Denison is already in partnership with Cameco in a potentially large deposit called Wheeler River.

Denison also has a 22.5% ownership interest along with Cameco in the McClean Lake uranium mill, one of only two in the Western hemisphere.

Eventually, Cameco may buy out the Wheeler deposit and McClean Lake or simply swallow Denison.

If not, its leverage to uranium still makes it an interesting play.

Consider this: When uranium almost doubled in a matter of months towards the end of 2010, DNN rose nearly 300%.

You don't want to miss out on gains like that.

Source :http://moneymorning.com/2012/11/21/uranium-stocks-to-benefit-from-nuclear-resurgence-ccj-dnn/

Money Morning/The Money Map Report

©2012 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in