I know, I’m sorry for the tap out title on this piece. It is spineless and cowardly. But I’ve gotten my hopes up enough times now, just to watch uranium prices breach new lows, that I will not tag along again.
It does appear, based on the very thinly traded reporting I have access to, that pricing for uranium fuel has increased dramatically in the past few weeks from around $28 per pound, to around $32 per pound.
This is of course nowhere near the $50 level it was at just a few short years ago. However, steps are to be taken incrementally. I want to see this hold up, then wait and see some more.
CCJ remains my only uranium play; I made a short trade in UEC for a wash earlier this year and decided the time was not right for the small miners.
My earliest prediction following the Fukushima Daiichi meltdown was that, if a V shape recovery could not quickly follow the price deflation, then at or around the three year anniversary would mark the recovery in nuclear fuel investments.
So far this year, those hopes have not been met. But there is still time; a few months later is not much off, and I could live with a year or two even…provided the rewards are rich enough.
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What is your take on the pricing vs the end of warheads to watts program that I believe has finally come to its end?
Openly speaking, there is not enough supply to meet the growing nuclear demand. Nuclear will grow as a popular choice for base rate generation.
Working in a large energy market myself I would tend to agree. The EPA, through regulation, is attempting a shutdown of literally Gigawatts of coal fired generation through their new “MATS” requirements which is increasing the creation of new combined cycle natural gas generation in coal’s place. Meanwhile, the demand for energy is increasing on a yearly basis. Until there is a way to generate nuclear energy at an intermediate level instead of base load the demand should increase. The EPA, in my opinion, has run amok.
and when I say “attempting” I mean they’re actually doing it. 2016 could be very dicey.