Of all the publicly traded companies with exposure to uranium, my favorite is Denison Mines (DNN). It has put itself in solid position to generate some serious growth when the price of uranium resumes its upward trajectory.
Before we get into it, Denison isn't my favorite just because it's trading below $2.00 a share and is assumed to have great upward potential for that reason only. After all, there are many companies trading at these levels because that's all they're worth.
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Showing posts with label Uranium Prices. Show all posts
Showing posts with label Uranium Prices. Show all posts
Saturday, June 1, 2013
Tuesday, May 7, 2013
Hidden Secret of Uranium Success Going Forward
It is imperative when looking at specific sectors like uranium, which can move in and out of favor quickly because of temporary setbacks, to take a deep breath and contemplate whether or not negative conditions are temporary or truly detrimental to an industry over the long term.
That's the case with nuclear power and uranium, which have suffered bad press from the unfortunate accident in Fukushima, putting the sector in a temporary tailspin.
See this explosive revelation of Uranium's "Dirty Little Secret."
That's the case with nuclear power and uranium, which have suffered bad press from the unfortunate accident in Fukushima, putting the sector in a temporary tailspin.
See this explosive revelation of Uranium's "Dirty Little Secret."
Tuesday, August 31, 2010
Cameco (NYSE:CCJ), Denison (AMEX:DNN), USEC (NYSE:USU) to Soar with Rising Uranium Demand
There are few industries that can be so easily seen as profitable in the long term, but uranium is one of them and companies like Cameco (NYSE:CCJ), Denison (AMEX:DNN) and USEC (NYSE:USU) are sure to soar over the long term as nuclear power is expected to surge over the next decade, with huge demand and diminishing supply.
Add to that Russia's decision to no longer downblend its weapons grade uranium, starting in 2012, and that will create up to a 20 million pound shortage in a global supply situation that is shrinking.
In about a 10-year period, shortage could reach as high as 100 million pounds, guaranteeing a huge increase in price as demand far outstrips supply.
For the short term, the story is different, as supply is ample, while some companies have dropped orders that had been counted on.
Over the next two or three years expectations are uranium shortages will already begin, and expand from there.
One other short term element to watch, is how China views the situation. In the past if they feel prices will skyrocket for a commodity, they have bought huge amounts and stockpiled it.
With energy being one of their major challenges, they could begin to do this in advance of price increases in order to secure their needed supply for the future; or at least for many years ahead.
If they go that route, prices could go up sooner than expected. If not, the patient, long-term investor will ultimately get a huge pay out from this sector.
It's only a matter of when, not if.
Add to that Russia's decision to no longer downblend its weapons grade uranium, starting in 2012, and that will create up to a 20 million pound shortage in a global supply situation that is shrinking.
In about a 10-year period, shortage could reach as high as 100 million pounds, guaranteeing a huge increase in price as demand far outstrips supply.
For the short term, the story is different, as supply is ample, while some companies have dropped orders that had been counted on.
Over the next two or three years expectations are uranium shortages will already begin, and expand from there.
One other short term element to watch, is how China views the situation. In the past if they feel prices will skyrocket for a commodity, they have bought huge amounts and stockpiled it.
With energy being one of their major challenges, they could begin to do this in advance of price increases in order to secure their needed supply for the future; or at least for many years ahead.
If they go that route, prices could go up sooner than expected. If not, the patient, long-term investor will ultimately get a huge pay out from this sector.
It's only a matter of when, not if.
Wednesday, June 16, 2010
Cameco (NYSE:CCJ) Positioned Strong for Growing Nuclear Demand
The short-term performance of Cameco (NYSE:CCJ) isn't certain at this time, as the growing interest and commitment to nuclear power as a source of energy is growing, and Cameco is positioned strongly to take advantage of that, although it is more of a long-term play for sure, but one that will ultimately reap great rewards for those patient enough to wait for them.
Essentially, what Cameco does is supply uranium to nuclear power plants, which are starting to sprout up across the world.
Along with growing demand will be supply challenges, especially when the 20-year Russian program dubbed 'Megatons to Megawatts' ends in 2013, as approximately 24 million pounds of uranium will be removed from the market, which has accounted for almost 13 percent of overall consumption in the world.
That has kept uranium prices down, and should change the pricing structure as demand increases and supply is left in somewhat of a vacuum for a period of time.
Cameco should be rewarded in those circumstances, and rebound from recent 52-week lows, as it is sure to have either hit bottom or close to hitting bottom.
Essentially, what Cameco does is supply uranium to nuclear power plants, which are starting to sprout up across the world.
Along with growing demand will be supply challenges, especially when the 20-year Russian program dubbed 'Megatons to Megawatts' ends in 2013, as approximately 24 million pounds of uranium will be removed from the market, which has accounted for almost 13 percent of overall consumption in the world.
That has kept uranium prices down, and should change the pricing structure as demand increases and supply is left in somewhat of a vacuum for a period of time.
Cameco should be rewarded in those circumstances, and rebound from recent 52-week lows, as it is sure to have either hit bottom or close to hitting bottom.
Thursday, April 1, 2010
Uranium a Long-term Play
Long term future of Uranium
There is no doubt uranium is going to rebound in the future, as demand will skyrocket at a time when supply will not be able to meet that demand.
Approximately 200 new nuclear reactors are scheduled to be built around the world, and including the 400 plus already out there, uranium will be needed to power them up for a long time to come.
In the short term though, uranium spot prices seem to have found a bottom at around $40, with maybe $45 being the top in the foreseeable future. There is little to indicate that will change in the next year or so, although there are some possibilities that could change that quickly.
For example, the major game-changer would be if China decides to go after uranium before the anticipated upswing in prices occur. While that would drive up prices some, it wouldn't be the same as if a large number of countries or companies were going after it at the same time.
China has done this with other raw materials in the past, and there's nothing to indicate they wouldn't do it again. If they do choose to go that route, then all bets are off on the prices mentioned about, and if they don't do that any time soon, prices should be tight around the figures mentioned.
Uranium is definitely a long term play, but for those looking to get into over a period of time, these prices are a good starting point, and they will only rise in the future.
Companies, indexes, futures and ETFs are all ways to invest in this increasingly important commodity.
There is no doubt uranium is going to rebound in the future, as demand will skyrocket at a time when supply will not be able to meet that demand.
Approximately 200 new nuclear reactors are scheduled to be built around the world, and including the 400 plus already out there, uranium will be needed to power them up for a long time to come.
In the short term though, uranium spot prices seem to have found a bottom at around $40, with maybe $45 being the top in the foreseeable future. There is little to indicate that will change in the next year or so, although there are some possibilities that could change that quickly.
For example, the major game-changer would be if China decides to go after uranium before the anticipated upswing in prices occur. While that would drive up prices some, it wouldn't be the same as if a large number of countries or companies were going after it at the same time.
China has done this with other raw materials in the past, and there's nothing to indicate they wouldn't do it again. If they do choose to go that route, then all bets are off on the prices mentioned about, and if they don't do that any time soon, prices should be tight around the figures mentioned.
Uranium is definitely a long term play, but for those looking to get into over a period of time, these prices are a good starting point, and they will only rise in the future.
Companies, indexes, futures and ETFs are all ways to invest in this increasingly important commodity.
Wednesday, March 31, 2010
Market Vectors Nuclear Energy ETF (NYSE:NLR) - Great Uranium Play
Market Vectors Nuclear Energy ETF
We continue to talk at Commodity Surge on the uranium industry, which is sure to explode in the years ahead, based on the over 200 new nuclear plants in various stages of planning or construction around the world. Market Vectors Nuclear Energy ETF (NYSE:NLR) is a great way to play uranium, and it has other benefits as well.
For example, the nuclear ETF is also a way to participate in emerging markets, as the vast majority of the nuclear plants will be built in those countries.
Even with attempts to increase production, the uranium mines in the world won't be able to supple the growing demand for uranium any time soon, and that ensures prices will eventually start to rise again as a consequence.
In the middle of 2007 uranium spot prices had reached as high as $136 a pound, but plunged along with everything else during the height of the economic crisis, to about $45 a pound today.
I don't see a much simpler and better way to invest in uranium unless you absolutely have the time to delve into every part of the industry. The other great things is low fees of an ETF and not having to deal with the prospect of trading in foreign markets. This applies to Market Vectors Nuclear Energy ETF because most of its holdings are tracked on foreign exchanges.
Any downside here? Sure. Like almost every investment today, much depends on the time a real and sustainable economic recovery arrives, and whether or not, or how long it takes, to enter another recession.
This is important because of the spending aspect of the sector, which would be cut back in a big way if things go sour economically again.
Even so, I look at this as a long-term play, and even if things go bad, I think nuclear commitment from countries around the world is here to stay. It's not a matter of if uranium prices will go up, it's only a matter of when.
Market Vectors Nuclear Energy ETF
We continue to talk at Commodity Surge on the uranium industry, which is sure to explode in the years ahead, based on the over 200 new nuclear plants in various stages of planning or construction around the world. Market Vectors Nuclear Energy ETF (NYSE:NLR) is a great way to play uranium, and it has other benefits as well.
For example, the nuclear ETF is also a way to participate in emerging markets, as the vast majority of the nuclear plants will be built in those countries.
Even with attempts to increase production, the uranium mines in the world won't be able to supple the growing demand for uranium any time soon, and that ensures prices will eventually start to rise again as a consequence.
In the middle of 2007 uranium spot prices had reached as high as $136 a pound, but plunged along with everything else during the height of the economic crisis, to about $45 a pound today.
I don't see a much simpler and better way to invest in uranium unless you absolutely have the time to delve into every part of the industry. The other great things is low fees of an ETF and not having to deal with the prospect of trading in foreign markets. This applies to Market Vectors Nuclear Energy ETF because most of its holdings are tracked on foreign exchanges.
Any downside here? Sure. Like almost every investment today, much depends on the time a real and sustainable economic recovery arrives, and whether or not, or how long it takes, to enter another recession.
This is important because of the spending aspect of the sector, which would be cut back in a big way if things go sour economically again.
Even so, I look at this as a long-term play, and even if things go bad, I think nuclear commitment from countries around the world is here to stay. It's not a matter of if uranium prices will go up, it's only a matter of when.
Market Vectors Nuclear Energy ETF
Tuesday, March 16, 2010
Illinois Removes Nuclear Plant Ban
Illinois removes nuclear plant ban
Seeing the handwriting on the wall, states are seriously started to look at increasing the use of nuclear power to meet their electrical needs, and the Illinois Senate voted on Monday to remove the ban on building new nuclear plants in the state; that after 23 years of forbidding new plants to be built.
In one hilarious response from an obviously disturbed and fearful person, they implied it would turn the state into a “radioactive waste repository.” Evidently the so-called activist hasn't heard you can now recycle nuclear waste and re-use it. Even if you couldn't it would still be very safe.
The measure passed by an overwhelming 40-1, and it now goes to the Illinois house for approval. Billions of dollars and many jobs are at stake for those wanting to get their share of the federal dollars being allocated for the building of the nuclear plants.
It's actually far past time nuclear power was re-introduced into the United States. The stupid and wasteful solar and wind power garbage does't work on a large scale, and nuclear is among the best there is out there.
Be on the lookout for uranium-producing companies, as they will be hot in the future as demand for the commodity surges.
Seeing the handwriting on the wall, states are seriously started to look at increasing the use of nuclear power to meet their electrical needs, and the Illinois Senate voted on Monday to remove the ban on building new nuclear plants in the state; that after 23 years of forbidding new plants to be built.
In one hilarious response from an obviously disturbed and fearful person, they implied it would turn the state into a “radioactive waste repository.” Evidently the so-called activist hasn't heard you can now recycle nuclear waste and re-use it. Even if you couldn't it would still be very safe.
The measure passed by an overwhelming 40-1, and it now goes to the Illinois house for approval. Billions of dollars and many jobs are at stake for those wanting to get their share of the federal dollars being allocated for the building of the nuclear plants.
It's actually far past time nuclear power was re-introduced into the United States. The stupid and wasteful solar and wind power garbage does't work on a large scale, and nuclear is among the best there is out there.
Be on the lookout for uranium-producing companies, as they will be hot in the future as demand for the commodity surges.
Friday, March 12, 2010
Cameco (TSE:CCO) Strongly Positioned for Nuclear Revival
Cameco Ready for Nuclear Revival
There is no doubt we're entering into an amazing time of nuclear revival for generating electricity, and one company positioned to take advantage of that is Cameco Corp (TSE:CCO).
Less than honest evaluations of the nuclear industry and safety has held back the much-needed source of electricity, but that has changed as France has shown that uranium, the chief fuel for nuclear plants can be safely recycled, and eliminates one major concern for the sector.
Another fuel that will probably gain acceptance going forward is thorium, which gives a more efficient burn than uranium and lowers the need for recycling.
For Cameco, they recently mentioned their uranium mine at Cigar Lake should produce up to 18 million pounds of fuel a year when it reaches full production.
Cameco Ready for Nuclear Revival
There is no doubt we're entering into an amazing time of nuclear revival for generating electricity, and one company positioned to take advantage of that is Cameco Corp (TSE:CCO).
Less than honest evaluations of the nuclear industry and safety has held back the much-needed source of electricity, but that has changed as France has shown that uranium, the chief fuel for nuclear plants can be safely recycled, and eliminates one major concern for the sector.
Another fuel that will probably gain acceptance going forward is thorium, which gives a more efficient burn than uranium and lowers the need for recycling.
For Cameco, they recently mentioned their uranium mine at Cigar Lake should produce up to 18 million pounds of fuel a year when it reaches full production.
Cameco Ready for Nuclear Revival
Monday, March 1, 2010
Investing in Market Vectors Nuclear Energy ETF (NYSE:NLR)
Market Vectors Nuclear Energy ETF (NYSE:NLR)
Nuclear energy is on the verge of making a huge comeback, and along with it will be those who understand the best ways to invest in uranium, which will struggle to supply the growing demand for the material.
America is going to bring some new nuclear reactors online, and the ever-demanding China has plans to build three times as many nuclear reactors to supply the needs of its people than the rest of the world combined.
Including nuclear reactor being planned, currently under construction, or in the approval stage, they number just under 500 across the world, showing the potential demand uranium will experience for years into the future.
One way to play this is through the Market Vectors Nuclear Energy ETF, which has a goal of mirroring the DAXglobal Nuclear Energy index as closely as possible after you take away various expenses and fees.
Another factor to keep in mind is the ETF has the normal practice of investing a minimum of 80 percent of its assets into global companies working in the nuclear energies business.
Market Vectors Nuclear Energy ETF (NYSE:NLR)
Nuclear energy is on the verge of making a huge comeback, and along with it will be those who understand the best ways to invest in uranium, which will struggle to supply the growing demand for the material.
America is going to bring some new nuclear reactors online, and the ever-demanding China has plans to build three times as many nuclear reactors to supply the needs of its people than the rest of the world combined.
Including nuclear reactor being planned, currently under construction, or in the approval stage, they number just under 500 across the world, showing the potential demand uranium will experience for years into the future.
One way to play this is through the Market Vectors Nuclear Energy ETF, which has a goal of mirroring the DAXglobal Nuclear Energy index as closely as possible after you take away various expenses and fees.
Another factor to keep in mind is the ETF has the normal practice of investing a minimum of 80 percent of its assets into global companies working in the nuclear energies business.
Market Vectors Nuclear Energy ETF (NYSE:NLR)
Wednesday, February 3, 2010
First Uranium (FIU.TO) Worst Uranium Company in World
First Uranium
First Uranium (FIU.TO) has the dubious distinction of being the worst uranium company in the world, and recent news from the company does nothing to alleviate that well-earned title.
The performance of the company is so bad it has downwardly revised uranium output forecast three times since the end of 2008, which has resulted in an incredible 75 percent cut in estimated uranium production since just April 2008.
Projections for gold production haven't been much better for First Uranium either, as it has cut estimates for 2011 to 190,000 ounces, a 63 percent plunge from the 507,000 originally projected.
For MWS, gold production is donw 65 percent for both 2011 and 2012, with expectations standing at 57,000 ounces for 2011 and 64,000 ounces for 2012.
The bad news keeps on coming for First Uranium, as they could end up having to pay a $42 million penalty to Gold Wheaton Gold Corp (GLW.V) if they aren't able to pass a technical completion test by June 1.
After all is said and done, First Uranium needs capital, which gets harder to attain when they're as far off as they are with mining production estimates and making deals like they did with Gold Wheaton.
First Uranium
First Uranium (FIU.TO) has the dubious distinction of being the worst uranium company in the world, and recent news from the company does nothing to alleviate that well-earned title.
The performance of the company is so bad it has downwardly revised uranium output forecast three times since the end of 2008, which has resulted in an incredible 75 percent cut in estimated uranium production since just April 2008.
Projections for gold production haven't been much better for First Uranium either, as it has cut estimates for 2011 to 190,000 ounces, a 63 percent plunge from the 507,000 originally projected.
For MWS, gold production is donw 65 percent for both 2011 and 2012, with expectations standing at 57,000 ounces for 2011 and 64,000 ounces for 2012.
The bad news keeps on coming for First Uranium, as they could end up having to pay a $42 million penalty to Gold Wheaton Gold Corp (GLW.V) if they aren't able to pass a technical completion test by June 1.
After all is said and done, First Uranium needs capital, which gets harder to attain when they're as far off as they are with mining production estimates and making deals like they did with Gold Wheaton.
First Uranium
Monday, February 1, 2010
Uranium About to Heat Up?
Nuclear Reactors and Uranium Demand
According to the US Nuclear Regulatory commission, demand for and permission to build nuclear reactors in the U.S. has skyrocketed, and that could eventually result in a huge increase in demand for uranium.
Now that nuclear power is being encouraged and considered an increasingly important part of American energy policy, uranium could be a major beneficiary of that reality as demand should surge as nuclear reactors are built and come online.
According to the US Nuclear Regulatory commission, there have been requests for 26 new reactors to be built in the country, with six of them already being ordered. There are 104 commercial nuclear reactors operating in the United States, supplying almost 20 percent of the electricity of the nation.
The good news is also the United States has the fourth-largest amount of uranium under its soil, making it extraordinary that it isn't being used to propel the nuclear industry forward to meet the growing energy demand in the country.
As far as what type of effect this will have on uranium prices, there can be no doubt what that will be. Uranium demand will increase; it's only a matter of when and how much.
Nuclear Reactors and Uranium Demand
According to the US Nuclear Regulatory commission, demand for and permission to build nuclear reactors in the U.S. has skyrocketed, and that could eventually result in a huge increase in demand for uranium.
Now that nuclear power is being encouraged and considered an increasingly important part of American energy policy, uranium could be a major beneficiary of that reality as demand should surge as nuclear reactors are built and come online.
According to the US Nuclear Regulatory commission, there have been requests for 26 new reactors to be built in the country, with six of them already being ordered. There are 104 commercial nuclear reactors operating in the United States, supplying almost 20 percent of the electricity of the nation.
The good news is also the United States has the fourth-largest amount of uranium under its soil, making it extraordinary that it isn't being used to propel the nuclear industry forward to meet the growing energy demand in the country.
As far as what type of effect this will have on uranium prices, there can be no doubt what that will be. Uranium demand will increase; it's only a matter of when and how much.
Nuclear Reactors and Uranium Demand
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