Are you a Uranium Investor? There were several interesting developments in the Uranium sector…
China announced over the weekend they are expanding nuclear power construction plans faster than they’d planned. They now believe installed-power capacity by 2020 could be an incredible 50% above their initial goal. The original target was for 40 gigawatts by 2020, enough to power Spain but only 4% of the total generating capacity of China; it's now expected to be 60 gigawatts.
Meanwhile, have you heard of the “U” boom? That’s what the Department of Mineral Resources in North Dakota is calling the sudden increase in phone calls from mineral owners, who themselves have been fielding phone calls from people interested in leasing their uranium minerals. Ed Murphy, state geologist, thinks it's only a matter of time before they start receiving permit requests to explore in the state. “We see it coming on the horizon,” he said. “Now there is interest.”
The two most likely reasons uranium has seen an increase in interest are the growing realization that more nuclear reactors may be required to fill the country's energy needs; and, perhaps less known to the public, stockpiles from retired nuclear weapons are running low. Throw in the fact that not much uranium is actively mined around the world, including the United States, and you have a renewed bull market in the making.
The current spot price for uranium is $74 per pound, but the long-term contract price, where 90% of all uranium is bought and sold, is $95. Uranium sold for $120 a pound in 1975.
Lastly, in Abu Dhabi, the UAE Cabinet approved an agreement over the weekend with France to develop nuclear energy for peaceful purposes.
AGS Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
