Uranium – A Sector Powering Ahead

Prior to the tragic earthquake and tsunami in Japan the factors pushing uranium prices higher included the 443 reactors in operation worldwide and the 62 under construction. Today there are 425 nuclear reactors safety operating and the 62 reactors are still under construction.

In 2010, about 180 million pounds of uranium was consumed globally. However, only 130 million lbs was produced by uranium mines. This means that only 2/3 of uranium demand is being met by mine supply. The balance is made up for by secondary supplies like the US-Russian HEU Agreement. This agreement, which expires in 2013, supplies 13% of world's or 45% of U.S. annual uranium needs! This agreement still expires in 2013, while uranium consumption is expected to reach 230 MM lb per year by 2020.

There's simply not enough uranium coming from the world's mines right now to supply the current power plants across the world, let alone the next 62 under construction, and the further hundreds planned and proposed.

Uranium stock prices are down and this presents a special investment opportunity.

As supply continues to be constrained and demand for uranium rises, the value of select uranium stocks, such as this emerging uranium producer, will also rise.