Mining for Money: Ready to Ride that Uranium Bull?

Strap on your spurs, cowpokes. There’s a uranium bull waitin’ for a ride.

I attended the Prospectors & Developers Association of Canada (PDAC) conference in Toronto earlier this month. I spoke to an eager audience, which was very nice. I also got to do one of my favorite things — conduct "straight from the horse’s mouth" interviews. By that, I mean chats with CEOs and other executives of top mining companies in gold, silver, uranium and more.

Last week, I promised I would show you an interview I filmed at the world’s top mining conference. It’s my talk with the CEO of a uranium company. I believe it’s an interview well-worth your time.

This interview is with Amir Adnani, the CEO and president of Uranium Energy Corp. (NYSEMkt: UEC). You can watch it below.

Direct link

Amir tells us about UEC. His company has built a portfolio of excellent uranium properties in Texas. UEC is a past-producing uranium producer. It is just waiting for uranium to recover to over $40 per pound before it starts producing again.

The spot price of uranium is currently $24 per pound. The longer-term, contracted price is about $33, according to industry heavyweight Cameco Corp. (NYSE: CCJ). That’s way, way down from a spot price of $136 per pound in June 2007.

So yeah, there’s room to the upside.

UEC "mines" uranium through In-Situ Recovery (ISR) mining. That process forces soapy water through uranium-rich rock, then recovers it in what is essentially a water treatment plant.

In other words, you don’t move or actually mine any dirt. Watch the video to get the scoop on that.

Amir ALSO gives his reasons why he thinks uranium is poised for a price surge. These include …

  New Contract Cycle. The last time utilities contracted for large amounts of uranium delivery was in 2010. Many of those contracts are expiring. Yet hungry reactors still need to be fed. Amir believes the next cycle of uranium supply contracts is about to begin.

  Looming Demand. Including new nuclear power plants that are being built, Amir expects the next decade will see a billion pounds of uranium demand that needs to be filled.

  Production Crunch. On the supply side, in 2016, uranium prices hit a 12-year low. So, big producers started shutting down production. Combined with higher demand, this is an ingredient for a real price squeeze.

  Political Winds of Change. The Trump White House is friendlier to nuclear power than the Obama administration, Amir says. That should remove obstacles for all sorts of U.S. uranium producers.

You can see all this and more by watching the video. Point your browser to: https://youtu.be/qofDIhxiXkc

As I explained in Friday’s column, I’ve experienced three years of disappointment with uranium prices and the performance of uranium mining stocks.

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But the laws of physics haven’t been repealed. Those reactors need to be refueled. Demand for uranium will rise sooner than later.

And that should light a fire under a whole range of uranium producers.

Last week, I talked about using the Global X Uranium ETF (NYSE: URA) to avoid single-stock risk in this volatile sector. If you decide to hop aboard this uranium bull, cowpoke, be sure to hang on for a potentially wild ride.

P.S. I’m putting the finishing touch on a virtual goldmine of my favorite microcap stocks in the metals and mining space. And I’m planning to unveil these to our very best subscribers in the coming weeks. If you’d like me to notify you about not only what to buy … but also precisely when … just let me know by clicking this link here.

Sean travels far and wide to seek out small-cap values in the natural resource sector. His journey started in New England. As a youth he worked on Mt. Washington, on the cog railroad that runs to the summit.