Uranium (Nuclear Energy)

[winston]

Despite Threats, Africa Is Looking to Nuclear With Russia and China’s Help

By Scott Firsing

Source: Monash University

http://www.theepochtimes.com/n3/1885380 ... campaign=9

[winston]

What Killed America’s Climate-Saving Nuclear Renaissance?

No nukes is bad nukes.

by Paul Barrett

Source: Blooomberg

http://www.bloomberg.com/news/articles/ ... =BBD102715

[winston]

So how has the Uranium gap been filled?

Russia: The U.S.-Russian HEU Agreement, which converted Russian warheads into nuclear fuel, supplied 24 million pounds of U3O8 annually. That agreement is done. Kaput. It is not being extended.

Japan: After Fukushima, Japan shut down all 54 of its nuclear reactors. It started selling some of its stockpiles back onto the market. But now it is restarting reactors. It has stopped selling. It's going to have to start buying.

Nuclear Enrichment: This is contributing between 10 million and 15 million pounds per year.

Other Stockpiles: This includes the U.S. government stockpile, which has been selling 5 million to 8 million pounds a year into the market out of inventory. This has helped bridge the gap... but it can only go so far.

We're coming to crunch time in the uranium market. The gap between demand and mined supply is all but certain to increase sharply over the next few years. So that means uranium prices should be heading much higher.

We've already seen the price of uranium climb from a rock-bottom $28 per pound to $36 per pound. How much higher will it go?

Nuclear disaster

Post-Fukushima, analysts estimate that new, conventional uranium projects won't be developed until the price is above $75. And 48% of global mine supply comes from conventional mining.

There is also in-situ recovery (ISR) mining, in which something like a water filtration plant is built near a uranium deposit and the mineral is leached out of the ground. In Texas, they use soapy water to recover (mine) uranium this way. Mr. Melbye says the all-in-cost at UEC's project is about $30 per barrel.

Cameco

Cameco (NYSE: CCJ), the big Canadian-based uranium miner looks like a safer bet for investors who will trade potentially less reward for less risk. For perspective, Cameco has a $5.6 billion market cap and trades about $25 million worth of stock on an average day.

Even though Cameco makes money, even at current uranium prices, and pays a 2.2% dividend, its share price languishes at very depressed levels. Based on price-to-cash flow and price-to-book value, the stock is close to its lowest levels of the last 12 years!

Whether you're a speculator or an investor, now is a good time to look at uranium companies. The time of much higher uranium prices is coming.

Source: The Non-Dollar Report

[winston]

Current Uranium Market Fundamentals Strong - Future Is Even Brighter

Summary

The one commodity in the natural resource space that is actually carrying some positive fundamentals today is uranium.

Source: Seeking Alpha

http://seekingalpha.com/article/3679906 ... n-brighter

[winston]

This "Energy Metal" Could Pile on More Double-Digit Gains

By PETER KRAUTH

Uranium was easily one of the best-performing metals of 2015, averaging a spot price of $39 a pound – an increase of 18% over 2014's $33.

Reuters has reported that CGN Mining Co. Ltd., a subsidiary of China General Nuclear Power Corp., will be assuming a minority stake in uranium deposits in Kazakhstan. Keep in mind that the Kazakh uranium industry overtook Canada's to be the world's largest back in 2009.

According to Reuters, Zhang Huazhu, chairman of the China Nuclear Energy Association, said, "We've approved two new projects this year [2015] and there will probably be another two or three approved later this year, so I believe that normality in the sector has already been restored."

China has committed to constructing an average of seven nuclear power plants annually through 2020. Its neighbor, India, has plans to produce a full quarter of its electricity from nuclear power by 2050, a massive increase over the 4% level it had in 2013.

Source: Money Morning

http://moneymorning.com/2016/01/20/this ... git-gains/

[winston]

Uranium Stocks: 2016’s Most Ignored Rebound Opportunity (URA CCJ TKECF)

Fundamental tailwinds and consistent demand puts uranium stocks in an advantageous situation

By Josh Enomoto

Source: Investor Place

http://investorplace.com/2016/02/uraniu ... rVb5lh96M8

[winston]

Kansai Electric Tumbles On Nuclear Shutdown Order: Brokers Race To Downgrade

By Shuli Ren

Yesterday’s court ruling is a setback for Prime Minister Shinzo Abe, who targets using nuclear power for at least 20% of Japan’s electricity generation by 2030.

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... downgrade/

[winston]

When the Trend Reverses, These Stocks Could Explode Higher

By Brian Weepie

It was like trying to board the subway at rush hour. I tried to make space for the new arrivals, but there was nowhere to move.

I just got back from the 2016 Prospectors and Developers Association of Canada (PDAC) Convention. Each year, this mining conference brings more than 20,000 attendees to Toronto to learn about all things resource-related. It's the largest of its kind in the world.

The vibe of the conference was different this year. Attendance was way down. Far fewer companies were telling their stories... far fewer service providers were selling their expertise... and there was far less buzz surrounding the attendees.

That is, except for one group of presentations...

As always, the gold and silver companies' presentations were busy... but I could always find a seat. The same with the presentations from the royalty and base metals companies.

But attendance for one of the resource presentations was overflowing. And no one was leaving between companies. I had to watch from the doorway.

That resource was uranium.

It was a sight to behold, considering how poorly uranium has been doing lately. Take a look at its recent price action...

Please Enable Images to See this

If you weren't at the PDAC conference, you would assume that no one cares about uranium today. After all, the sector has yet to recover from the Fukushima nuclear power plant accident that happened five years ago.

Back then, an earthquake caused a tsunami, which led to three nuclear meltdowns and the release of radioactive material... the largest nuclear disaster since Chernobyl in 1986.

But even though uranium prices are down, we still use uranium to generate electricity in nuclear reactors. The World Nuclear Association (WNA) estimates we'll use more than 65,000 metric tons – nearly 170 million pounds – in 2016.

Earlier this month, the WNA reported that China has 30 nuclear plants in operation and 24 others under construction. To put this into perspective, China owns about 7% of the world's nuclear reactors... but it's responsible for 37% of the reactors that are currently under construction.

And more are coming. The country currently generates 26.8 gigawatts of nuclear power. The reactors being built will double that output. By 2030, the country plans to generate 150 gigawatts.

To put that into perspective, the entire world currently produces 384 gigawatts. China plans to produce nearly 40% of that amount itself in less than 15 years.

Several other countries are building, too. The U.S., Russia, the United Arab Emirates, India, South Korea, and Japan are all building more than three gigawatts of additional nuclear capacity right now.

So... what should you do as an investor? At the PDAC conference, the presentations with the most attendees were Fission Uranium (FCU.TO) and NexGen Energy (NXE.V). Both companies have huge deposits of more than 100 million pounds in Canada's Athabasca Basin, which has higher-grade uranium than anywhere else in the world.

These two companies will see their share prices explode higher when uranium prices recover. If you're looking to add some uranium to your portfolio, these companies are a great place to start.

Source: Stansberry Resource Report

[winston]

3 reasons why uranium stocks should be on your radar today

by Gwen Preston

Today, there are more reactors operating and in the pipeline (meaning under construction, planned, or proposed) than there were before Fukushima.

China leads the pack: if all of China’s planned, proposed, and under construction reactors are built, that country alone would boost the global reactor count by 51%.

But China actually only represents 36% of the global pipeline. Other biggies on the nuclear build list include India, South Korea, Russia, the UAE, and the US.

Uranium demand is going to gap way above supply – but the gap is not going to appear until 2020. So why am I so bullish today?

Because of who uses uranium and how they secure it.

Operators cover their uranium needs at least three years out – and often as much as a decade out.

We could expect the prices to rise soon, based on
1) contract timing,
2) lack of new supply, and
3) rising demand.

Source: Sprott’s Thoughts

http://thecrux.com/sprott-analyst-3-rea ... ould-soar/

[winston]

A new bull market in uranium?

by Alexander Green

There are more than 60 nuclear reactors under construction right now in China, Russia, and India. (China alone has 26 plants under construction.)

Industry leader Cameco (CCJ) believes annual uranium consumption will increase from about 160 million pounds today to 220 million pounds by 2025.

The price of uranium has plunged from more than $70 a pound to less than $30 today.

Source: Oxford Club

http://thecrux.com/alexander-green-a-ne ... n-uranium/