Supernova Investing in URANIUM

Uranium (Nuclear Minerals) / Exploration, Mining, Marketing, & Acquisitions

Caleb Gibbons reports that uranium stocks have garnered a lot of attention this far in 2017. Little wonder, as the uranium plays are up nearly 60% since the deemed pro-nuclear Trump was elected in November 16?. 2017 +27%, 2016 -1%, 2015 -37%, 2014 -23%, 2013 -21%, 2012 -19%, 2011 -60.% From inception (11/4/2010), The uranium ETF is down 79.5% cumulative from inception in 2010. U3O8 spot price currently trades as $25.31.lb. down 81.4% from the 2007 high of $136/lb. The merit of nuclear power on metrics of both energy security and a low-carbon future are beyond refute. 1 kg. of uranium, post enrichment and used for power generation in light water reactors produces 45,000 kWh of electricity. From an output perspective 1 kg. of uranium is equivalent to almost 10,000 kg. of mineral oil and 14,000 kg. of coal. The comparisons on emissions are as striking as on energy output.

Approximately 5% of current world energy supply comes from nuclear power. There are 447 operable nuclear reactors in the world at present, requiring 140 million lbs. of uranium per annum. Utility stocks are estimated at 478 million lbs., 3.4 year of demand. The largest 3 markets for nuclear power are France (58 reactors, 75% of overall power coming from nuclear), Japan (42 operable reactors, 40% of power pre-Fukushima disaster, only 3 have been brought online since all closed in 2011) and USA (99 reactors, 20% of overall power). A total of 60 reactors are under construction at present in China, India, South Korea, UAE and Russia . Twenty two of the nuclear plants under construction are in pollution ridden China, where 40% of growing electricity demand is still coal-powered, and the liveability of 25 of its largest cities hinge on nuclear power hockey stick growth projection. China is expected to have 40 nuclear reactors online by 2020 and to add 10 per annum thereafter. CNECC is the exclusive nuclear plant builder in China.

Original or Re-Directed URL: https://www.valuewalk.com/2017/02/supernova-investing-uranium/