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 Supply. Show all posts
Showing posts with label Uranium Supply. 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."
Monday, August 23, 2010
Goldman Sachs (NYSE:GS) Newest Nuclear Power
With the acquisition of the commodities-trading operations of Constellation Energy Group (NYSE:CEG) in 2009, Goldman Sachs (NYSE:GS) became the recipient of a stash of uranium.
Nuclear reactors are becoming a fast and growing part of the strategy of many nations to provide energy, and uranium is becoming a hot commodity in a way it hasn't been for a long time.
Dozens, and more, of new reactors have been targeted for being built, and now the question of uranium supply is in the forefront of many people's minds, as a renewed race for nuclear energy emerges.
Goldman's uranium supply has drawn the interest of a growing number of entities, especially some of their larger clients, underscoring the quiet but growing fight for supply.
In regard to that, uranium companies have received significant investment over the last quarter, in anticipation of what will eventually become a perfect supply and demand situation where supply won't be able to keep up with demand, which will push up the price of uranium and companies that supply it.
I wonder if Goldman will sell now or hold on until the demand part of the equation soars?
Nuclear reactors are becoming a fast and growing part of the strategy of many nations to provide energy, and uranium is becoming a hot commodity in a way it hasn't been for a long time.
Dozens, and more, of new reactors have been targeted for being built, and now the question of uranium supply is in the forefront of many people's minds, as a renewed race for nuclear energy emerges.
Goldman's uranium supply has drawn the interest of a growing number of entities, especially some of their larger clients, underscoring the quiet but growing fight for supply.
In regard to that, uranium companies have received significant investment over the last quarter, in anticipation of what will eventually become a perfect supply and demand situation where supply won't be able to keep up with demand, which will push up the price of uranium and companies that supply it.
I wonder if Goldman will sell now or hold on until the demand part of the equation soars?
Thursday, June 17, 2010
Morgan Stanley (NYSE:MS) on BHP (NYSE:BHP) Olympic Dam Expansion
The misguided and damaging taxation of the mining industry in Australia may have received another blow, as Morgan Stanley (NYSE:MS) said BHP Billiton will probably halt development on their Olympic Dam project in response to the 40 percent tax on mining profits in the country, scheduled to begin in 2012.
Included in the project is the largest known uranium deposit in the world.
Morgan Stanley analyst Craig Campbell said, “Our modeling of this project shows that the resources super profits tax reduces the net present value of the project to an extent that it becomes negative.”
With the cost of expansion for the mine expected to be from $20 billion to $40 billion, it's highly unlikely BHP will commit to something that once they start, could crush their earnings for years based on the super tax.
This could over the long term benefit uranium miners like Cameco (NYSE:CCJ) who will also benefit from the end of the 'Megatons to Megawatts' initiative of the Russians, which will remove about 24 million pounds of uranium from the market in 2013, the year it ends.
Increasing demand for uranium makes this a good play for uranium producing companies with a lot of exposure to the commodity.
Included in the project is the largest known uranium deposit in the world.
Morgan Stanley analyst Craig Campbell said, “Our modeling of this project shows that the resources super profits tax reduces the net present value of the project to an extent that it becomes negative.”
With the cost of expansion for the mine expected to be from $20 billion to $40 billion, it's highly unlikely BHP will commit to something that once they start, could crush their earnings for years based on the super tax.
This could over the long term benefit uranium miners like Cameco (NYSE:CCJ) who will also benefit from the end of the 'Megatons to Megawatts' initiative of the Russians, which will remove about 24 million pounds of uranium from the market in 2013, the year it ends.
Increasing demand for uranium makes this a good play for uranium producing companies with a lot of exposure to the commodity.
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.
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