The Must-Have Commodity for 2011: Uranium

Source: Motley Fool, Mike Pienciak (1/13/11)

"Uranium producers are the most direct play on rising demand."

Uranium, like any other commodity, is subject to violent price swings, so you can make a mint or get your face ripped off. Even though uranium prices have risen substantially since last summer, I believe opportunity yet exists for the savvy investor.

Hardly rare, uranium is more abundant than gold or silver—but that doesn't mean it's readily available either. For one, more than half of world production comes from 10 mines in six countries, which means that political hitches and mining delays can, and do, produce supply shocks. Also, starting a new mine, or even expanding an existing one, is no quick feat.

Then there's the favorable demand picture, summed up below:

Against a worldwide total of 441 nuclear reactors currently in operation, 63 new reactors are under construction, with another 156 on order or planned.

Existing mines currently furnish only about 75% of consumed uranium, with the balance supplied by secondary sources such as decommissioned warheads. Such sources are finite in nature, and a major Russian supply program is slated to expire in 2013.

No surprise, China is a heavy at the uranium table. The country plans to increase its existing nuclear capacity roughly ninefold by 2020, a target that a government official recently indicated may be conservative.

Finally, global electricity consumption is projected to nearly double by 2030, yet nuclear power plants supplied only 14% of 2009's worldwide electricity production. Translation: there's ample room for nuclear energy production to grow.

So far, there's no ETF or ETN linked to uranium futures. Even if there was, I'm not sure I'd recommend it. . .uranium producers are the most direct play on rising demand."

Target Price Raised on U.S. Uranium Firm Advancing Texas Project
Source: Streetwise Reports (01/29/2021)

ROTH Capital Partners report calls the advancement of the Burke Hollow project in Texas a "Positive Sign."

U.S. Firm Ready to Produce, 'Support National Uranium Reserve'
Source: Streetwise Reports (01/27/2021)

Uranium Energy Corp.'s favorable position and the reasons for a target price raise on the company are covered in an H.C. Wainwright & Co. report.

Geophysical Survey Identifies Drill Targets at Athabasca Uranium Project
Source: Streetwise Reports (01/19/2021)

Skyharbour Resources' partner Azincourt Energy carried out this work at East Preston.

Top Pick U.S.-Based Uranium Producer/Developer Offers 'Maximum Upside Exposure'
Source: Streetwise Reports (01/14/2021)

The key reasons Uranium Energy warrants Top Pick status and makes a compelling investment are presented in a Haywood Capital Markets report.

Explorer Reports Final Fall 2020 Drill Results from Uranium Asset
Source: Streetwise Reports (01/09/2021)

Skyharbour Resources drills the second of the two longest, continuous intercepts of uranium mineralization discovered at the Moore project.

2021 Forecast Issue: Financial Navigation in Uncharted Waters
Source: Michael Ballanger for Streetwise Reports (01/05/2021)

Sector expert Michael Ballanger lays out the foundation for his investment strategy in the new year, with uranium and copper augmenting his focus on the precious metals.

Company Options Uranium Project Interest in Northern Saskatchewan
Source: Streetwise Reports (12/09/2020)

Skyharbour Resources is optioning an 80% stake in its North Falcon Point uranium project.

Explorer Expands High-Grade Zone at Athabasca Uranium Project
Source: Streetwise Reports (12/04/2020)

Through a 'breakthrough hole,' Skyharbour Resources encounters the longest continuous intersection of uranium mineralization to date at Moore.

Uranium Company Receives Final Federal Permits for U.S. Project
Source: Streetwise Reports (12/02/2020)

What this milestone means for Azarga Uranium, the next steps for advancing its Dewey Burdock and near-term catalysts are addressed in a Haywood report.

Uranium Developer Obtains Final EPA Permits for Flagship South Dakota Property
Source: Streetwise Reports (11/27/2020)

Azarga Uranium reported that the receipt of the final EPA permits for its Dewey Burdock Project marks another significant milestone achievement for the company.