Uranium prices and mining stocks are low, but market forces will push them both higher in the next 12–24 months, says David Sadowski. Miners are jockeying for position and he tells us to expect mergers and acquisitions as they prepare for the good times to come.
URZ is approximately one month from mine completion and starting a three month inventory stockpiling program. After shipment of its first inventory it will be 30 days before Uranerz receives payment – let’s call for the cash flow to start early in the second quarter of 2014.
If a person consumed only nuclear-generated power, the amount of waste generated over his or her lifetime could be contained in a soda can. Compare this to the trainloads of coal delivered daily to coal-fired power plants.
Canadian uranium producers (URA) can now compete with Kazakhstan, Australia and Russia to sell uranium to China. The fast growing nuclear industry has never been open to China and will create a boom in the Athabasca Basin for uranium explorers.
Commodities have a long and storied history of boom/bust/boom, with supply and demand alternately racing past each other as the lag times for developing new supply assure too much at some point and too little at others.
Nuclear power has been a hot topic recently. And as a result, the price action of its input commodity has been quite schizophrenic. Investors and speculators are in a state of great wonderment over what to expect from this intriguing mineral.
Thorium as nuclear fuel is clean and safe and offers significant advantages over uranium. The technology for several types of thorium reactors is proven but still must be developed on a commercial scale.