Friday, April 27, 2007

Uranium Futures Set to Trade on May 6

This should be good for the Uranium Producers mentioned in this article.
And Nymex has "correctly identified that the nuclear power industry is
undergoing a renaissance with tremendous growth ahead, as the world struggles to deal with strong emerging market and Asian growth, while facing the reality of
peak oil and an energy-constrained world," he said.

He is right because the Chinese are building reactors like crazy to reduce the amount of oil they need to run their industry.
Physicists and engineers at Beijing's Tsinghua University have made the
first great leap forward in a quarter century, building a new nuclear power
facility that promises to be a better way to harness the atom: a pebble-bed
reactor. A reactor small enough to be assembled from mass-produced parts and
cheap enough for customers without billion-dollar bank accounts. A reactor whose safety is a matter of physics, not operator skill or reinforced concrete.

I think the US needs to seriously look into what China is doing with their reactors. If we can copy them cheaply we may get out the global warming disaster zone that Gore keeps hitting us with. In any case these futures contracts will be a good deal for the companies mentioned in the article. Here are the companies:

Cameco (CCJ)
Denison (DNN)
Uranium Resources (URRE)
Uranium One (CA:SXR)
Energy Metals (EMU)
Uranerz Energy (URZ)
Strathmore Minerals (CA:STM)


These seem like the pure plays. (I have only researched Cameco myself) These companies are the bigger integrated mining companies that also mine uranium as well as gold, iron, etc. They are:

Rio Tinto (RTP)
BHP Billiton (BHP)

This article explains how a SXR Uranium One (CA:SXR) might become the 2nd biggest uranium producer by merging with UrAsia Energy. The combined company will end up hauling in 19 million pounds of uranium by 2012. In any case I'm going to fimiliarize myself with this industry in the same way as I did with the Tanker Industry last year. You can't beat a metal that has gone from $20 a pound in 2002 to $113 a pound today.

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