There are more reactors planned or under construction today than before the Fukushima Daiichi disaster. There are about 438 nuclear reactors in the world now (104 in the US) and this will rise to 527 in the next 6 years. Emerging markets are going to be the real growth story, specifically China, India and Russia.
China’s currently has 15 reactors in operation, 26 under construction and 51 planned, according to the World Nuclear Association. Chinese nukes. How to play this as an investment ?
Today there is excess short-term uranium supply and low discretionary demand mainly from utilities. For much of the summer, China was not buying uranium on the spot market, and many utilities were covered for 2013 requirements. Prices and stocks have sucked all year. But that is about to change.
Demand for yellowcake aka U3O8 will increase as countries need the fuel for the reactors. One forecast sees 240–260 M lb of demand by 2020.
All these companies have low or no debt and have seen their share prices fade with uranium prices. These are plays for a turn around in 2013 as the economy picks up.
- UEX Corp. (UEX:TSX) $0.475 Money losing. No debt. Good projects /possible take-over target.
- Energy Fuels Inc. (EFR:TSX) $0.145 Risky penny stock. Money losing. Largest producer in US.
- Denison Mines (DML:TSX) $1.07. Money-losing klutz of a company. But $500M in assets.
- Cameco Corp. (CCO:TSX or CCJ:NYSE) $18.26. $7B market cap. Yld 2.1%. Second largest producer in the world—in 2009 produced 21 million lbs U3O8.
I was just kidding about the nuclear weapons part.
