In 2013, our uranium bellwethers Areva (ARVCF) and Cameco (CCJ) have significantly outperformed the S&P 500 (SPY) by a significant margin. The uranium price has been making a very bullish turnaround since early November.
According to a recent publication from the American Chemical Society, a study performed by the NASA Goddard Institute for Space Studies and the Columbia University Earth Institute of New York came to the conclusion that more than 1.8 million human deaths have been prevented by world nuclear power production from 1971-2009.
The best thing about low uranium prices is that they greatly enhance one’s ability to take over world-class deposits that were discovered prior during increased exploration thanks to high uranium prices.
Four months ago I warned my readers that the uranium price could breakout because of the rise of terrorism and radical extremism in West Africa. This past week there was a suicide car bombing on a French uranium mine in Niger.
Anti-nuclear power sentiment has by no means evaporated, but Marin Katusa sees clear signals that the bulls are ready to run, not least of which is the recent attack on the Somair uranium mine in Niger.
One sector where we see a great amount of value is the uranium miners as the Chinese are going full speed ahead in building next generation nuclear reactors. The uranium spot price is just over $40, which is near the bottom of its three year range.