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Time to get bullish on Uranium

Uranium has been the most hated commodity market in recent years. A negative public perception and surplus inventories caused prices to crash 35% over the past 3 years. The Fukushima disaster sent uranium prices plummeting and they have yet to truly recover. You can get more information at Latest Financial News.

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Time to get bullish on Uranium

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  1. Time Time to to get get bullish bullish on on Uranium Uranium Uranium has been the most hated commodity market in recent years. A negative public perception and surplus inventories caused prices to crash 35% over the past 3 years. The Fukushima disaster sent uranium prices plummeting and they have yet to truly recover. You can get more information at Latest Financial News. We are at an inflection point that represents a great opportunity. Increasing energy demands, a drop in production and low investories will be the catalysts that will start this bull market. Investors still have time to position themselves into companies in this space before everyone else does. Increasing Uranium Demand Public perception of Uranium associates it with pollution and nuclear bombs. However, the reality is that nuclear power is cheaper, cleaner and a better alternative to fossil fuels. The International Panel on Climate Change is clear that nuclear power produces less air pollution than solar, wind, or hydro. Unlike wind and solar power nuclear energy offers price stability and sustained energy that is interrupted by darkness and clouds. Governments around the world are focused on fighing climate change and are all investing in nuclear power.

  2. Currently there are 450 Uranium power plants in production with 59 more are under construction. There will be a total of 345 new plants be build by 2030. These new reactors mean that the demand for uranium should increase significantly over the next decade. The five-year low Uranium price of $18/lb in 2016 clobbered producers and caused chaos in the industry. Currently Uranium prices have improve to $27/lb, but we are still a long way away for the five-year high of $43lb in 2014. Uranium production cuts The world’s largest producer KazAtomProm has taken 25% of their production or 10% of global production off the market. Cameco the world’s second largest producer has suspended production at the world’s largest uranium mine since 2017. There is a structural under supply and with inventories being drawdown we can expect upward pressure to prices.

  3. US Dependency on foreign supply America has the world’s largest nuclear fleet with 98 reactors, but in 2019 US mined Uranium won’t even supply the needs of one. The United States imports 89% of its uranium from outside sources with over 42% of supply coming from Russia and its allies. Lawmakers in the US are concerned as Nuclear power makes up 20% of total energy generation for the entire country.

  4. The US government will make a decision on Section 232, a bill that would bind nuclear reactors to buy at least 25% of their uranium from US producers. With protectionist Donald Trump in power this motion seems likely to pass and this should propel US Uranium prices and miners. A decision is expected on April 14, 2019. Uranium Companies to watch UR- Energy TSX: URE NYSE: URG Ur-Energy mines, recovers, processess, develops and operates uranium mineral properties in the US. Its current portfolio

  5. includes thirteen projects in Wyoming and the company is currently the lowest cost producer in the United States. Ur-Energy has the long term sustainable contracts and production capacity to ramp up production once costs rise. There are only a handful of licensed/permitted Uranium companies in the US that will benefit from a favorable Section 232 decision. This company offers a good speculative play on the upcoming political decision by the US government. Cameco TSX:CCO NYSE:CCJ Cameco is one of the world’s largest uranium producers and will be one of the major beneficiaries of an increase in prices. The company operates two of the highest-quality uranium mines in the world. At peak production Cameco produced 15% of the world’s uranium. Cameco has the ability increase annual uranium production very quickly by restarting their shut down mines. Cameco is in solid standing has $1 billion in cash reserves, 13.7% profit margin and their stock is up 39.4% over the last 52 weeks. The company is a long term play. Investors have an opportunity to buy an undervalued asset that is bound to increase in value based on the current market conditions. Bottom Line The natural resource sector is one of the financial market’s most volatile sectors. Commodity prices move in huge boom and bust cycles and offer incredible returns to investors that take advantage. There are many positive factors that show that

  6. uranium prices are going to rebound. The coming tide will lift all Uranium boats much higher and it’s only a matter of time when it kicks off. For Latest Business News visit Smart Money Gains.

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