Uranium

Where do you think the long term increase in demand will be coming from?

I've looked at it before, but the low volume/liquidity scared me away.

What do you use to trade it?

Overall I can't be too bullish. While China's demand might go up European and North American demand won't be going up after Fukishima.

I started following the uranium sector in 2010 and finally bought shares of UEC in 2012-13. I met the CEO, Amir Adnani at the spring 2012 Casey Conference in Florida. Great guy and someone I follow closely as he is going to allow me to retire in my early 50's one day. lol I also own shares of his other company, Brazil Resources, Inc. (BRI.V) The company currently has approximiately 10 million ounces of gold in the ground through recent the acquisition in Brazil (Brazilian Gold Corp.) I keep reading from the Casey folks that Brazil's Artulandia's gold mine is going to rival Yamana Gold's Chapadas gold mine. You probably know that Yamana is one of Jeff Clark's "mother's stocks" that he recommends, the others being...(can't say, it's for subscribers only) You know, stocks that he would trust his mother's money to make some serious cash when this gold bubble blows up in the coming years since this bull market is FAR from over.

One of the largest gains in my portfolio has been Fission Uranium Corp.(FCU.V) which was purchased in 2013. Got in at 0.35/share and it has been a great, but short ride so far. Because of Fission's split into Fission Uranium and Denison, I own free shares of Denison
Fission had a spin-out of another company, Fission 3.0, last year resulting in more free shares of another company.

If the vampire squid is long on U3O8, then it's party time.

quote:

---

Overall I can't be too bullish. While China's demand might go up European and North American demand won't be going up after Fukishima.

---

The way I look at it, just the U.S. consumption of uranium is enough to be bullish considering that 20% of electricity in the U.S. is generated from nuclear power plants. The U.S. uses 50 million pounds of uranium annually AND 50% (24+ million pounds) of the uranium was coming from Russia in the Megatons to Megawatts program that ended in Dec. 2013. The U.S. only produces 4.3 million pounds of uranium per year. Talk about a shitty supply and demand imbalance!

Here are some other facts that make the case for uranium bullish:

Demand by the Numbers
•432 Reactors operable in 31 countries
•68 New reactors under construction
•162 Reactors planned
•316 Reactors proposed
•13.5% of global electricity comes from nuclear power
•75% of France is powered by nuclear energy

But, you're right. With these numbers, it's hard to be bullish on uranium.

Japan will be back eventually. It's the only energy source that makes sense for them. And shutting that down because of an old plant that got hit with a record tsunami is not a reason to suffer high energy costs. Learn your lessons, fix your regulatory body and invest in newer, safer designs, and move on.

The US is dwindling slowly though because of costs and lack of movement on the spent fuel front from Washington. Maybe SMRs changes the cost factor, but you still have a federal government that has been tasked (and paid $25B) to take the used fuel.

China could make up for that loss though. I'd probably rather invest in something else.