Stephen Simpson, CFA
Stephen Simpson, CFA • 18 Comments
Dennis Beaudet • 54 Comments
Wed, Apr. 13, 2:43 PM
- Ur-Energy (URG +3.5%) is higher after reporting Q1 production of 159.3K lbs. of U3O8 from its Lost Creek plant, largely matching projections.
- URG says it also packaged 173.8K lbs. and shipped 182.1K lbs. of drummed inventory from the plant.
- URG guides Q2 production for Lost Creek at 160K-190K lbs. of U3O8 dried and drummed.
- Now read Uranium prices to remain low amid oversupply, Fitch says
Aug. 10, 2015, 11:58 AM
- Japan is rejoining the countries using atomic power after the Fukushima nuclear disaster more than four years ago, as Kyushu Electric Power says it will begin bringing online the No. 1 reactor at its Sendai facility on Aug. 11, start power generation as early as Aug. 14 and return it to normal operations next month.
- The move is an important de-risking event for the uranium market, says BMO Capital analyst Edward Sterck: While "Japanese utilities are sitting on significant excess inventories, the fact that these will now start to be consumed [in Japan] should ease fears of sales from inventory,” and it shows there is a regulatory restart process in Japan that actually works, which clears the way for more.
- Relevant stocks: CCJ +4.1%, DNN +5.1%, LEU -1.3%, URRE +5.7%, UEC -1.5%, URG -2.7%, UUUU +8%.
- ETFs: URA, NLR
Apr. 22, 2015, 12:30 PM
- Uranium names are showing notable strength today following yesterday's ruling in Japan that will allow the Sendai nuclear plant to reopen, which would be the first plant to be reopened since the Fukushima disaster: CCJ +6.8%, DNN +5.6%, LEU +10.3%, URRE +4.5%, UEC +5%, URZ +2.6%, URG +1%, UUUU +1.7%.
- The news is positive for the nuclear industry to the extent that authorities in Japan have not given up on the energy source despite Fukushima.
- China is pushing for more nuclear power, with the government reportedly approving eight new nuclear power projects.
- A MarketWatch article paints a bright picture of the nuclear industry, with uranium prices rising ~35% since last summer and improving public opinion; "China and India believe that the upside from the clean energy from nuclear far outweighs the downside risks of sticking to dirty coal,” says GoldStockTrades.com editorJeb Handwerger.
- Last week, CCJ signed a deal with India to provide 7.1M lbs. of uranium concentrate over the next five years.
- ETFs: URA, NLR
Nov. 24, 2014, 2:37 PM
- Uranium prices have reversed recent gains, plunging $6/lb. (~13.5%) to $38 over the past week in their biggest weekly drop since 1996.
- TD Securities' Greg Barnes thinks the current volatility is more reflective of trader positioning in a thinly traded market than utilities exhibiting strong fundamental demand; the analyst is not convinced that the rapid drop will be enough to trigger a wave of buying by utilities.
- Uranium names are broadly lower today: CCJ -3%, DNN -3.8%, UEC -1.6%, URG -5.7%, URZ -4.4%, UUUU -1.5%, URRE -0.4%.
- ETFs: URA, NLR, NUCL
- Earlier: Uranium spot prices could pass $50/lb. in next 12 months, analyst says
Nov. 10, 2014, 2:41 PM
- Uranium names are moving briskly higher after H.C. Wainwright analyst Jeffrey Wright says uranium spot prices could rise above $50/lb. in the next year, as a positive decision on the restart of two Japanese nuclear reactors could alleviate psychological pressures on the uranium market.
- The firm maintains Buy ratings for Uranium Energy (UEC +9.3%), Uranerz Energy (URZ +14.7%) and Ur-energy (URG +8.6%).
- Also higher: CCJ +2.9%, DNN +7.1%, URRE +30.9%, UUUU +10%.
- ETFs: URA, NLR, NUCL
Nov. 7, 2014, 12:20 PM
- Reports that Japan is restarting some reactors may be helping uranium stocks catch a bid today.
- Two reactors at Japan's Sendai nuclear plant are due to become the first to be restarted in the country since the 2011 meltdown at the Fukushima facility.
- Also, Denison Mining (DNN +22.2%) reported Q3 earnings last night, delivering a loss of $0.01 vs. a loss of $0.10 in the prior-year quarter.
- CCJ +10.3%, UEC +5.4%, UUUU +6.1%, URRE +27.2%, URG +16.9%, URZ +11.5%.
- ETFs: URA, NLR, NUCL
Jul. 16, 2014, 11:52 AM
- Uranium miner Cameco (CCJ +1.7%) is higher despite reporting that ore from its Cigar Lake mine in Saskatchewan would not be milled until early 2015 instead of before the end of 2014, due to problems freezing the ground.
- CCJ freezes the mine's ore zone and surrounding ground to prevent water from flooding production areas, but it says freezing has not advanced as quickly as expected.
- Uranium/nuclear names are broadly higher after two of Japan's nuclear reactors received clearance to re-start: USU +8.2%, DNN +3.3%, URG +3.2%, URRE +1.6%, BWC +1%, URS +0.3%, LTBR flat.
Jul. 2, 2014, 11:31 AM
- USEC (USU +25.5%) extends yesterday's huge gains following news of $2.5M in new funding from the Department of Energy; shares have dropped off early morning gains of as much as 65% but have more than tripled since the announcement.
- A Seeking Alpha blog says the $2.5M influx moves the needle very little in the context of refinancing $530M of bonds outstanding, and that the stock soon will revert to fundamental valuation; post-reorganization, with convertible note holders taking the lion's share of value, equity holders will be left with less than 5% of the current trading value of the stock.
- Uranium peers are mostly higher: URRE +8.8%, URG +5%, UUUU +2.8%, URZ +2.7%, DNN +1.5%, UEC flat.
Jul. 1, 2014, 10:58 AM
- Uranium supplier USEC (USU +60.4%) soars as much as 70% in early trading after an SEC filing reveals it secured ~$2.5M in additional funds through the U.S. Department of Energy, bringing total DoE funding to ~$16M.
- The funds come via an amendment to the agreement with UT-Battelle, operator of Oak Ridge National Laboratory in Tennessee, for continued R&D of the American Centrifuge technology in furtherance of Department of Energy national security objectives.
- Also, a statement of operations shows revenues of ~$6M and a net loss of ~$3.5M in May.
- Uranium peers on radar include UEC +7.7%, URG +2.7%, URRE +2.7%, DNN +1.6%, UUUU +1.6%.
Jun. 5, 2014, 10:54 AM
- RBC cuts its outlook for uranium prices over the next several years as it concludes the market will remain in surplus through 2020.
- RBC believes Japanese reactor restarts could result in a recovery in uranium prices to $40/lb. in late 2014 or early 2015, but thinks the price is likely to be capped at that level until the market begins to tighten; the firm predicts only four Japanese reactors will restart this year with 28 - slightly more than half the current fleet - eventually restarting.
- Spot prices recently dropped below $30 as supply remains well ahead of demand since the Fukushima disaster.
- RBC cuts its price target for industry leader Cameco (CCJ -2.5%), seeing shares rangebound between $18-$27.
- URZ -3.3%, UUUU -2.5%, URRE -1.5%, UEC -1.1%, USU -0.9%, DNN flat, URG flat.
- ETFs: URA, NLR, NUCL.
Feb. 26, 2014, 2:50 PM
- Top uranium miners rise for a second straight day after the Japanese government reversed plans to shift away from atomic energy, designating nuclear as an integral part in meeting the country’s long-term electricity needs.
- PM Abe's plan, which is expected to receive cabinet approval in weeks, could open the door to restarting some of Japan's 48 idled reactors as soon as this year; the plan also hints at possible new reactors.
- Japan’s turnaround on atomic energy has as much to do with finances as anything else; Japan's utilities have been making up the shortfall caused by the absence of nuclear energy by buying liquefied natural gas on the international market at record high prices.
- Denison Mines (DNN +8.6%), which today announced high grade uranium intersections at its Phoenix deposit, and Cameco (CCJ +4.2%), Canada's largest uranium producer, continue to move higher; smaller miners are fading after posting strong gains yesterday: USU +3.3%, URRE -0.9%, UEC -1.1%, URG -3.4%.
- ETFs: URA, NLR, NUCL.
Feb. 24, 2014, 11:42 AM
- Uranium takeovers are on the verge of a comeback that could put companies such as Denison Mines (DNN +5.2%), Ur-Energy (URG +4.9%) and Fission Uranium (FCUUF) in play, according to a Bloomberg report.
- Uranium prices are forecast to rise more than 40% by year's end as Japanese power plants restart nuclear reactors that have been shut down since the March 2011 Fukushima disaster, and analysts say the rebound in uranium demand may fuel takeovers as buyers try to get ahead of rising prices.
- DNN would make an attractive target for someone looking to gain access to Canada’s Athabasca Basin, home to the world’s richest high-grade uranium; a Raymond James analyst thinks Rio Tinto may be particularly interested.
- Cantor Fitgerald thinks DNN and Fission could be targets of Cameco (CCJ +0.8%), which has been building up cash and last month sold a stake in a power plant for C$450M.
- Also: URRE +5.5%, URZ +4.6%, UEC +0.9%, USU +0.4%.
- ETFs: NLR, NUCL.
Feb. 19, 2014, 3:59 PM
- Investors in uranium companies are not excited by the U.S. government's plans for $8.3B in nuclear loan guarantees, as the amount is viewed as insufficient and the overall loan program is seen as fizzling, according to a NY Times report.
- Funds are coming far later than anticipated and may effectively end a program that Congress established in 2005 to jump-start a new generation of nuclear plants, NYT writes; at one point, the program was expected to support more than $50B in loans for nuclear projects.
- USEC (USU -10.8%) is slammed despite reporting another $16.7M in government obligated funds toward development of the American Centrifuge project.
- Other uranium providers are lower too: URG -4.1%, DNN -3.7%, URRE -3.7%, UEC -3.5%, URZ -3.2%, CCJ -1%.
- ETFs: NLR, NUCL.
Jul. 29, 2013, 9:16 AM
Jun. 17, 2013, 12:17 PM
Ur-Energy (URG +2.8%) gets a lift today from Cantor Fitzgerald, who initiated the shares with a Buy and a $1.40 price target. Cantor thinks URG is poised to become the next U.S.-based uranium producer, with initial in-situ recovery production expected later this summer. The firm adds that it expects to post further ratings upgrades as the company transitions from construction to production.| Jun. 17, 2013, 12:17 PM | 1 Comment
Oct. 5, 2012, 3:08 PM
Ur-Energy (URG +9.4%) says the Bureau of Land Management approved a plan of operations for its Lost Creek uranium in-situ recovery project in Wyoming, the final regulatory step needed to initiate construction and production at the site.| Oct. 5, 2012, 3:08 PM