Uranium One – Striking Tips By Way Of The In-depth Analysis

posted in by admin on January 27th, 2012

Uranium One, Inc. is a uranium mining company that trades on the Toronto Exchange. The ticker symbol is UUU on the TSX. The company is a rapidly-growing producer. UUU is not as large as household name Cameco. However, it is poised to be a big player in Kazakhstan. In an effort to pursue uranium mining in Kazakhstan, the company sold a majority of itself to a Russian company. The move was designed to enhance negotiations and logistical concerns since a Russian company would be largely involved. Russia is heavily involved in Kazakhstan. This connection lends promise to the endeavors of Uranium One in that country, as do the trends for uranium demand in general. Uranium One Is Feeding The Nuclear Power Appetite Uranium One stands to benefit, as do all uranium miners, from the fact that uranium is slated for a boom in the next 5-10 years. The boom could even come sooner. Asia is growing at a phenomenal pace. As the standard of living rises, so does the demand for power. Increases in demand for electricity stems from widespread distribution of air conditioning, refrigeration, and a smattering of electronic gadgets. Asia, led by India and China, seek to fuel their electricity needs through nuclear power. In the decade between 1997 and 2007 alone, nuclear power increased 15%, largely due to reactors in Asia. It’s reported that the combined growth in China and India could amount to over 100 new reactors in the next 20 years. The voracious need for uranium is demonstrated by the fact that those two countries could consume nearly half of the amount of uranium mined today once their plans roll out! Uranium One Is Benefiting From Asian Natural Gas Shortage The suitability, and economic feasibility, of nuclear reactors in Asia stems from the relative paucity of alternatives. Countries such as the United States have an abundance of natural gas. With low natural gas prices, it makes little sense to build nuclear reactors. Nuclear power requires a huge capital outlay in infrastructure. It’s more sensible for the U.S. to simply use natural gas, rather than using it in concert with uranium for nuclear power creation. By contrast, Asia doesn’t benefit from an abundance of natural gas. While places like China have some shale fields for natural gas, there is nothing significant in the way of current production. As a result, the upfront infrastructure costs of nuclear reactors makes more sense. It is a long term investment for nations like China and India. Thus, the projected demand for uranium is strong. This bodes well for companies, such as Uranium One, who are positioned well as established and growing producers of this critical ingredient. Young exploration companies or those with promising deposits are among the best stocks to buy, particularly as uranium has fallen out of favor.