Reveille for the American Nuclear Industry
Source: Jeb Handwerger, Gold Stock Trades (12/17/10)
"Governments and institutional investors are scrambling for control of uranium assets."
The United States is constantly laboring to court India’s very profitable and blossoming nuclear energy industry. President Sarkozy has invaded the marketplace which has been historically commanded by America. Admittedly, it is important to protect polar bear habitats, but simultaneously we should defend a sector in which we were pioneers going way back to the Manhattan Project led by Einstein, Bohr, Oppenheimer and Meitner. These visionaries were thrown out of the "Fatherland" because they espoused a new physics that was antagonistic to the classical German rocket technology. This erroneous decision was later regretted by the Nazis as they failed in the race to build "the a-bomb."
There is another major crisis over the near term. America is one of the largest users of uranium and a lot of the uranium comes from Russia. More than 90% of uranium consumed in this country is imported. However, that program with Russia is coming to an end by the end of 2013 and the U.S. will need to find alternate supplies. Time to wake up, Homer.
Yesterday, The Russians (ARMZ) purchased Mantra for almost $10 a pound of uranium in the ground. Mantra controls the Nyota deposit and will be able to produce 5 million pounds of uranium a year. This transaction signals that governments and institutional investors are scrambling for control of uranium assets in the ground. These transactions should continue over the next few months as alert foreign nations such as China and Russia are realizing the dire supply demand constraints. Russian uranium requirements have increased evidenced this year by several acquisitions including Uranium One (UUU:TSX) which has just received its NRC License on its Moore Ranch project. Other miners in Wyoming are likely targets. The trend is signaling that the suitors will come from overseas as China, with its recent take off agreement with Cameco (CCJ:NYSE) and Russia with its recent purchase of Mantra seem to be the most active investors. I am surprised as the U.S. seems asleep at the switch with many danger signs being alerted.
The readers of my newsletter were notified back in October to build positions in the promising uranium mining sector especially domestic assets and specifically assets found in Wyoming. Wyoming is a mining friendly jurisdiction and there are a lot of miners nearing production.
Some of the miners out of Wyoming nearing production have made huge percentage gains such as Uranerz (URZ), UR Energy (URG), Cameco (CCJ) and Uranium One (SXRZF.PK) as more mines are expected to receive permits to begin operation. Stay Posted.
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