This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Positive Forward Fundamentals Temper Long-term Uranium Outlook

Positive Forward Fundamentals Temper Long-term Uranium Outlook

The long-term outlook for the uranium market remains positive as industry insiders look forward to strong demand expected to come from the numerous reactors under construction worldwide — Russia, China and India have a total of 95 reactors planned over the next two decades. However, the short-term outlook is dreary as most utilities are well-supplied.

The uranium spot price continued to slide this week. Both TradeTech and Ux Consulting are reporting a spot price of $43.50 U308 per pound, down $2.25/lb from the previous week — the biggest week-over-week slump in prices since April 2011. Industry analysts attribute the steep drop to sellers' willingness to offload their product at cheaper prices as the year comes to a close.

In other market news, uranium-rich Australia is strengthening its trade alliance with energy-hungry India after overturning a a ban on uranium exports to the Southeast Asian nation last December. In an effort to combat the power shortages harming the nation's industrial production capacity, India plans to build more nuclear power plants with a goal of generating 8 percent of its energy needs from nuclear power by 2030. Currently, nuclear energy accounts for 2.3 percent of the electricity produced in India.

Company news

Uranium giant AREVA (EPA:AREVA) placed the nearly-complete, $1 billion Trekkopje uranium mine in Namibia on care and maintenance due to unfavorable market conditions. The France-based company said the project is only economically viable if it can sell U308 at $75/lb. The mine was expected to have an annual production capacity of 3,000 tonnes of U308.

"AREVA was engaged in an intensive programme to find innovative solutions for the launch of the mine,” stated the company. "Nevertheless, considering both the continued decrease of uranium prices coupled with the investments yet to be made on site, AREVA has no other option than to postpone the launch of the Trekkopje mine."

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs