For weeks I have been highlighting that the uranium spot price (URPTF) has been outperforming oil and the Standard & Poor's 500 Index (SPY) in a major way, indicating that there were significant catalysts on the horizon which could boost the uranium miners as well.
This week major news has come across the wire that Canada and India has agreed to a major bilateral agreement over the sale of uranium.
India is moving ahead with nuclear development and needs to source uranium for their reactors. Australia has been problematic with permitting issues hurting the junior uranium miners attempting to develop projects there. However, Canada is open for business and optimistic that it can deliver millions of pounds of uranium from their high grade, uranium rich Athabasca district in Saskatchewan.
Canada could become the Saudi Arabia of the 21st century as the world turns from dirty coal into clean nuclear power generation. This India and Canada agreement could mean the green light is on to finance uranium exploration and development. The pessimism from Fukushima is old news for the nuclear sector and has been replaced with the optimism of major growth from emerging economies such as India and China who are building nuclear reactors at a record pace.
Canadian Prime Minister Stephen Harper who is up for election in 2015 is a great supporter of nuclear energy and expressed his delight to reporters about the deal which has broad popular support both in Canada and India. India is the second most popular country and they may be at the beginning of a nuclear renaissance.