From Casey Research:
So, why do we like uranium? Several reasons:
- The world must go nuclear – Nuclear has been an unpopular option for the world ever since the Three Mile Island incident in 1979 and Chernobyl in 1986. However, as the world looks to cut back carbon emissions, even former opponents of nuclear are beginning to embrace it as a lesser evil. Consider the words from the co-founder of Greenpeace, Patrick Moore: “Nuclear energy is a key technology for the future and [there] should be a resurgence of this technology happening now.”
- The ending of the HEU Agreement between the U.S. and Russia in 2013 – The HEU Agreement between the U.S. and Russia, also dubbed the Megatons-to-Megawatts program, converted Russian nuclear warheads to useable fuel for American nuclear reactors. This has supplied a large percentage of the American uranium needs for the past decade. The program is ending in 2013, and the uranium to replace this source will need to come from somewhere else.
- The China factor – China currently generates about 3% of its energy from nuclear. If it reaches the regional average of 25%, it will need 8 times more reactors than it has now, putting further pressure on global uranium stocks.
Overall, nuclear energy, and thus uranium, is something that we at Casey Energy are very bullish on and will continue focusing on over the next few years. You may want to begin thinking about the “other yellow metal” yourself. There will be a lot of money to be made.
