Uranium prices have climbed by roughly 35% since last summer. The weekly price of uranium stood at $38.85 a pound as of Monday, compared with $28 as of June 23, according to data from nuclear-fuel consultancy Ux Consulting Company LLC...
Indeed, the world seems to be warming back up to the use of nuclear energy.
‘Japan was using 50-year-old reactors while China, India and Russia are building next generation nuclear reactors, which are much safer than the first generation dinosaurs of the past.’
“China and India believe that the upside from the clean energy from nuclear far outweighs the downside risks of sticking to dirty coal,” said Jeb Handwerger, editor of GoldStockTrades.com.
He pointed out that “Japan was using 50-year-old reactors while China, India and Russia are building next generation nuclear reactors, which are much safer than the first generation dinosaurs of the past.”
Japan has struggled to restart its nuclear reactors since the disaster, however. This month, a Japanese court halted the planned restart of two nuclear reactors in western Japan because of safety concerns among locals.
All of Japan’s 48 nuclear reactors have been offline since September 2013, according to The Wall Street Journal.
But last week, uranium producer Cameco Corp. CCJ, -1.67% CCO, -1.31% announced an agreement with India to provide 7.1 million pounds of uranium concentrate over the next 5 years. Shares of Canada-based Cameco have climbed roughly 14% month to date.
Going forward, the biggest gains in the market should be seen in the high-grade development projects in the Athabasca Basin in Canada, such as the ones operated by Denison Mines Corp. DNN, -1.14% DML, +0.97% and Fission Uranium Corp. FCUUF, -2.53% FCU, -2.56% and the low-cost producers such as Ur-Energy Inc. URE, +0.88% and Uranerz Energy Corp. URZ, +3.64% URZ, +4.48% said Handwerger, who owns shares in Ur-Energy, Uranerz and Fission.
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Disclosure: I own shares in URG, URZ and FCUUF and would benefit if uranium prices go higher. There are many risks investing in junior mining companies and commodities such as uranium. Please consult a registered financial adviser before making any investment decisions. I am not a financial adviser.
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