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Uranium
Equals Gold ! Report By Mining News Reporter
Zero Emissions - Zero Carbon Despite all the talk about wind and solar these days, nuclear energy produces more zero-emission, zero-carbon energy in the United States than all renewable sources combined – and by a wide margin. Because of nuclear energy’s clean air attributes, the sector is growing – significantly – led by China, India, South Korea, Russia, and the U.S. Indeed, many people don’t know that the U.S. currently has the largest fleet of nuclear reactors in the World. Most Misunderstood Commodity However, uranium is a misunderstood commodity right now, and uranium producers like Ur - Energy - URG NYSE is in our opinion way undervalued . These shares could triple in the coming year. Look at the 10-year stock charts of uranium companies like Energy Fuels, Cameco, and Paladin The sector has been decimated with most names in the space are down well over 90% since 2007. Here is an unbelievable statistic: if you remove Cameco from the equation, today an investor can buy every single publicly-traded, pure-play uranium producer in the World – for under a billion dollars. That’s mind boggling considering the global nuclear space is actually growing. World Nuclear Association According to the World Nuclear Association, today there are 444 operable nuclear reactors in existence, along with 62 new ones under construction, and another 509 on order, planned, and proposed. China has officially announced that it intends to double the size of its nuclear fleet in the next 5 years and they expect to have up to 6 times more nuclear capacity installed by 2030. Climate Change Dictates Nuclear Energy Nations around the World are seeking to address climate change and air pollution, as demonstrated by the recent COP21 Paris Agreements. This is not a declining sector by any means – to the contrary, nuclear is experiencing very strong global growth. And, this growth will be fueled by uranium. Future Population Explosion Consider this: 1.6 billion people around the World have no electricity at all. 3 billion more people will be born in the World by 2050. Reliable electricity results in cleaner air, cleaner water, better healthcare, better education, and stronger economies. Nuclear energy is on the rise, yet uranium prices are near multi-year lows. Weak Performance In Uranium - Turnaround Expected ! The main reasons for the weak performance of uranium prices are largely tied to the 2011 nuclear disaster in Japan and unexpected growth in production from Kazakhstan, today’s leading producer. Despite these developments, there is reason to believe the oversupply of uranium is about to reverse course and soar upwards ! Kazakh production has already plateaued, and Japan is returning reactor units to service – albeit slowly. In addition, major uranium mines are depleting, others are reducing production, and the low prices of the past several years have severely curtailed new uranium exploration and mine development. There are only two new major mines coming online now – Cigar Lake and Husab. The World is expected to need several more large mines at some point in the next 10-15 years, and there are none on the horizon, as it typically takes 10+ years at least to explore, license, finance, and construct a major new uranium mine. When the market finally turns, existing producers like Ur - Energy : URG NYSE are likely to be the main beneficiaries, since demand will outweigh supply – perhaps dramatically so – and that could drive uranium prices much higher. World Nuclear Association According to the World Nuclear Association, today there are 444 operable nuclear reactors in existence, along with 62 new ones under construction, and another 509 on order, planned, and proposed. China has officially announced that it intends to double the size of its nuclear fleet – in the next 5 years – and they expect to have up to 6 times more nuclear capacity installed by 2030. Climate Change Dictates Nuclear Energy Nations around the World are seeking to address climate change and air pollution, as demonstrated by the recent COP21 Paris Agreements. This is not a declining sector by any means – to the contrary, nuclear is experiencing very strong global growth. And, this growth will be fueled by uranium. Consider this: 1.6 billion people around the World have no electricity at all. 3 billion more people will be born in the World by 2050. Reliable electricity results in cleaner air, cleaner water, better healthcare, better education, and stronger economies. Nuclear energy is on the rise, yet uranium prices are near multi-year lows. Weak Performance In Uranium - Turnaround Expected The main reasons for the weak performance of uranium prices are largely tied to the 2011 nuclear disaster in Japan and unexpected growth in production from Kazakhstan, today’s leading producer. Despite these developments, there is reason to believe the oversupply of uranium is about to reverse course. Kazakh production has already plateaued, and Japan is returning reactor units to service – albeit slowly. In addition, major uranium mines are depleting, others are reducing production, and the low prices of the past several years have severely curtailed new uranium exploration and mine development. There are only two new major mines coming online now Cigar Lake and Husab. The World is expected to need several more large mines at some point in the next 10-15 years, and there are none on the horizon, as it typically takes 10+ years at least to explore, license, finance, and construct a major new uranium mine. When the market finally turns, existing producers like Ur - Energy : URG NYSE are likely to be the main beneficiaries, since demand will outweigh supply perhaps dramatically so and that could drive uranium prices much higher. Forward Looking & Disclaimer / Privacy - Financial News Highlights This Week |