$URNM - Available At a Discount
Russian forces recklessly shelled a nuclear plant last week.
This led to a sell-off over concerns that countries might take a step back from nuclear power.
This turned out to be an emotional overreaction. The plant was completely safe, and only an administrative building was damaged.
Uranium plays are now available at a relative discount.
According to Reuters, "The United States relies on Russia and its allies Kazakhstan and Uzbekistan for roughly half of the uranium powering its nuclear plants - about 22.8 million pounds (10.3 million kg) in 2020 - which in turn produce about 20% of U.S. electricity, according to the U.S. Energy Information Administration and the World Nuclear Association."
"There is no uranium production or processing in the United States currently, though several companies have said they would like to resume domestic production if they can sign long-term supply contracts with nuclear power producers. Texas and Wyoming have large uranium reserves.
Australia and Canada also have large reserves of uranium and there is ample processing capability there and in Europe. But Russia and its satellites are the cheapest producers."
So with the White House considering sanctions on the cheapest available uranium, the price of this commodity will undoubtedly rise over coming weeks and months.
According to World Nuclear Association, "Russia has substantial economic resources of uranium, with about 9% of world reasonably assured resources plus inferred resources up to 1130/KG – 505,900 tonnes U (2014 Red Book)."
This seems like a great play for a move back above $100.
This led to a sell-off over concerns that countries might take a step back from nuclear power.
This turned out to be an emotional overreaction. The plant was completely safe, and only an administrative building was damaged.
Uranium plays are now available at a relative discount.
According to Reuters, "The United States relies on Russia and its allies Kazakhstan and Uzbekistan for roughly half of the uranium powering its nuclear plants - about 22.8 million pounds (10.3 million kg) in 2020 - which in turn produce about 20% of U.S. electricity, according to the U.S. Energy Information Administration and the World Nuclear Association."
"There is no uranium production or processing in the United States currently, though several companies have said they would like to resume domestic production if they can sign long-term supply contracts with nuclear power producers. Texas and Wyoming have large uranium reserves.
Australia and Canada also have large reserves of uranium and there is ample processing capability there and in Europe. But Russia and its satellites are the cheapest producers."
So with the White House considering sanctions on the cheapest available uranium, the price of this commodity will undoubtedly rise over coming weeks and months.
According to World Nuclear Association, "Russia has substantial economic resources of uranium, with about 9% of world reasonably assured resources plus inferred resources up to 1130/KG – 505,900 tonnes U (2014 Red Book)."
This seems like a great play for a move back above $100.
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