Keep the faith of PEN. We are far ahead of the most U players...

Keep the faith of PEN. We are far ahead of the most U players here on ASX.

"The biggest challenge that miners are faced with is not discovery, but rather development. Since uranium is toxic by nature, proposed mining operations are subject to substantial regulatory oversight. These mines usually need specialty permitting from a country?s nuclear agency for such things as tailings disposal, processing, and transportation. And overall this makes the process of developing a uranium mine quite cumbersome from a time and cost perspective.

For these reasons and more, most uranium companies will fail. And I suspect the road will be even tougher in the interim considering all the negative sentiment currently surrounding nuclear. These mining companies are likely to encounter a much leaner capital-raising environment until some of the fear abates.

Provocatively these negative factors are quite bullish for uranium?s long-term fundamental picture. The major challenges miners are faced with will only allow them to ramp up supply so fast. And this is apparent when you look at the universe of uranium stocks. There aren?t many projects in the development pipeline.

As investors we need to be selective in the stocks we choose. There aren?t many producers to choose from, emerging producers are few and far between, and explorers with a combination of high-potential deposits and managerial know-how to drive development are even more rare. But if you do find these stocks, huge gains are likely to be had. And considering the carnage in this sector from the events earlier this year, it is currently a bargain-hunter?s paradise."