Uranium Still Glows
Source: howestreet.com (11/21/07)
...as always, it's the small companies that will be able to benefit from this second run in uranium prices. It will be a lot easier for these companies to double or triple in size. The first qualities that investors should look for are reserves and location...
The current political climate helps the nuclear cause as well. Instead of dealing with the hostile regimes controlling most of the world's supply of fossil fuels, we can look to allies, such as Canada and Australia, for the uranium needed for nuclear facilities.
The United States is still the world's largest uranium buyer. After all, 20% of the country's grid is nuclear-powered. Japan and France have also dedicated significant resources to nuclear power (France's power supply is already a whopping 80% nuclear. The world's resurging energy demands and the return to nuclear technology are helping to fuel the hype...
even after the wicked summertime correction, uranium prices are still high enough to produce hefty profits for uranium producers. And demand is only going to push the price of uranium through the roof — again. But which companies are going to benefit the most from it?
Well, as always, it's the small companies that will be able to benefit from this second run. It will be a lot easier for these companies to double or triple in size. The first qualities than investors should look for are reserves and location. But it's not enough to just have good locations and big reserves. To be profitable, companies have to be able to actually mine these metals at a low cost. So the second factor after location and reserves is the grade of their reserves.