Gret comment, Wiseguy!

Yes, he is.

Thanks LFP. Yes, I saw you post that India was going to be working with Canada to secure a supply of Uranium for their existing and reactors that are under construction or planned. Cameco is the market leader so it makes sense they were involved.

The fundamentals for Uranium are extremely bullish mid-term, and they were mega-bullish before the Fukushima accident, but (as usual) people Over-Reacted. The Japanese are set to start their reactors this year, and that will help, but even so, the market perceptions of the nuclear space are greatly divorced from the reality.

The reality is that nobody cares if Germany disbands its nuclear program as they are small potatoes, and while Japan is important, it pales in comparison to US, French, Russian, Chinese, Indian, South Korean supply needs. There is also substantial rising interest in the middle East and developing South Asia. Russia and China and the US are helping developing countries build large reactors, and that supply has to come from somewhere. At the low prices (far below the cost of production for any open pit or underground mining) and just above costs for Insitu-mining.

We’ll see the price take a sudden jump in late 2015 and in early 2016. Most of the long term supply contracts (that end in 2016) are around $50-$60 and this is the only reason companies have plugged ahead during these tough times. With the exception of Uranium Energy Corp, the remainder of companies are selling their product at far above spot prices (like Cameco, Areva, Paladin, Uranium One, Energy Fuels, Uranerz, Ur-Energy, and Denison).

The other thing is that the Uranium supply that was flooding the markets from the Megatons to Megawatts project of disarming US and Russian warheads concluded in 2013/with spillover into 2014. Lasty, Japan sold a great deal of its Uranium to China to raise money to purchase coal, oil, and gas to power their country the last few years, so they’ll need to restock many of their stockpiles once they throw the switch and turn those back on.

China is building 29 reactors at present with 70 more scheduled, planned, or getting permitted. Just that alone is more than Japan & Germany combined, and doesn’t take into account the reactors they already have in place, or are building for other countries.

It appears that Uranium will likely lead the commodity and energy space as the first horse out of the gate this year. I have been building good positions over the last year in Uranium miners/producers, and the surviving quality explorers.

Yesterday near the close would have been a good time to take profits. Good luck man!