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Uranium Energy Corp. (UEC) Prepares For The Next Wave

|Includes: Uranium Energy Corp. (UEC)

Although the disastrous series of events at Japan's Fukushima nuclear power plant in March of 2011 was ultimately blamed on poor planning, regulation, and communication, and not on the lack of viability of nuclear technology, the nuclear power industry was itself essentially hit by a tsunami, pouring cold water on what had been increasingly viewed as the best available low-carbon solution for an energy hungry world. Other low-carbon power options are still struggling to establish themselves, and total only a fraction of nuclear's energy output. But any nuclear fallout from Fukushima was far exceeded by the associated storm of political and popular fallout, giving pause to an otherwise robust worldwide nuclear movement. Fears of a wide-scale pullback resulted in uranium stocks taking a major hit, and nobody seemed sure of exactly where the industry would go.

What a difference a year makes. As the dust settles, people are once again looking to nuclear power. It's not that anyone has forgotten Fukushima. It's just that it's impossible to get around a basic fact: that nuclear energy is still the only proven and ready-to-roll low-carbon way to fill a big portion of rapidly growing global energy demand. The lessons learned from Japan will still need to be implemented, but the backlog of planned nuclear plants is still there, and uranium stocks have once again begun to show some life. It's all in the numbers. Over the next 20 years, the use of nuclear energy could easily double, and last year alone the International Atomic Energy Agency indicated that there was a 30 million pound shortfall of uranium.

Uranium Energy is in one of the best positions to benefit from the inevitable swell in demand. The company has one of the most comprehensive databases of uranium exploration and mining activity in America, which has allowed them to identify and acquire the best prospective sites, resulting in a portfolio of roughly 34 million pounds of uranium. Also unique is the fact that UEC has its own uranium processing plant, one of only a few such plants in the country, which can process up to 2½ million pounds of uranium annually. In addition, the company is well financed, which gives it the leverage to make choices.

For more information, see the company website at

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