lance sjogren

Uranium Sees Signs of Strength, M&A

Uranium resource companies have been in a slump in recent months, in contrast to most commodities.

For a value investor, that spells opportunity.

The primary uranium stock I have been accumulating is Hathor. They are the world's premier junior Uranium exploration company, with a high grade deposit in the Athabasca region. We don't know how many pounds they have though. I believe the stock right now is priced for a worst case scenario- a bear market in Uranium and their Uranium resource coming out at the bottom of the range of expectations. Downside should therefore be small relative to current stock price, while upside is substantial.

Merrill McHenry on Uranium: Looking at the Big Picture

In answer to road runner, the world is not running out of Uranium any time soon.

The cost of the Uranium itself is a vastly smaller fraction of the cost of producing power than for something like coal. In other words, the price of Uranium could skyrocket and it wouldn't have a big impact on the economics of nuclear power.

And, if it did skyrocket, the supply would greatly increase due to marginal deposits becoming economic.


I am more concerned about a glut of Uranium rather than a scarcity. When Cigar Lake finally comes online, that will add quite a bit of supply.

Still, I do own some Uranium stocks, namely Terra Resources and Hathor.