Uranium is the most precious of all commodities from investment point of view.
Uranium is in SEVERE shortage because the demand is substantially HIGHER than supply.
Shortage of Uranium is expected to last another 3 years or longer.
This shortage is happening because most producers are having problems in mining.
CCJ is the biggest...whose cigar lake mines got flooded...causing a delay of 3 years.
Other producers are having production shortfalls because of difficulty in mining & equipment /structural issues.
Uranium is trading @ $138 per lb fron 3 year ago price of $10......
Most mining analyst are predicting price of Uranium around $160 for the end of this year.
Most countries are focussing on Nuclear energy to deal with Global warming & severe shortage of electricity around the world.
China is constructing 30 nuclear power plants and have plans for another 50.
Most asian countries are using nuclear power plant as a current source and banking heavily for future expansion of nuclear energy.
Even IRAN wants to use nuclear to power their future needs.
All in all the future of nuclear is very "GLOWING".
There is a frenzied M& A actvity in this arena which CNBC,CNN & FOX..never reports.
AREVA the French Nuclear GIANT is buying Uranium exploration companies all over the world.
All Uranium producers like SXR,DNN,CCJ& PDN.TO is buying Uranium exploration companies every few months.
I currently own PDN.TO which is an Australian uranium producer which just bought Summitt Uranium mines in Australia...which AREVA wanted to buy..but were outbid by PDN.TO.
I expect PDN.TO to be bought out by somebody...someday.....so I hope.
Please do your own due diligence as I own PDN.TO.
BLOG does not give buy or sell.
Happy fathers day to all.
My next post will be on monday @ 9.00 AM.
Saleem
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