nuclear-news

Uranium – the ever losing investment

Not Even Godzilla Can Save This Uranium Stock Motley Fool B Rich Duprey 26 May 14   If Godzilla remains a cautionary tale about the perils of nuclear power, miner Cameco (NYSE:CCJ  ) may be one for investing in the uranium industry. Its decision to withdraw its application to build and operate its Millennium underground uranium mine in Saskatchewan because of poor economic conditions in the uranium market shows that betting on an industry pure play remains a risky venture.

Investors counted on a convergence of factors to power up the uranium market and put down the critics, including:

• Japan reversing its ban on nuclear power following the Fukushima reactor meltdown.
• The hope that Germany would revisit its phase out of nuclear power by 2021, as coal remains a dirty word.
• Russian hegemony in the Ukraine creating instability in the gas market.
• The completion last year of the U.S. and Russia’s “megatons to megawatts” program that converted old nuclear warheads into fuel for reactors, effectively removing a large supply from the market.

Shares of uranium stocks enjoyed a run-up late last year on the belief that 2014 would jump-start a recovery. Between mid-October and mid-March, Cameco saw its shares appreciate some 50% in value.,,,,,,,,,,,

Yet, the promise of substantial gains didn’t hold up as uranium pricing continued to fall.

Japan, after all, has delayed restarting its nuclear reactors. Germany hasn’t made any movement to reverse its policies, and the uranium supply glut remains in place. Uranium prices hit eight-year lows, sliding to $29 a pound at the start of May, or levels not seen since 2005. They’re down 16% so far in 2014 alone. …..http://www.fool.com/investing/general/2014/05/24/not-even-godzilla-can-save-this-uranium-stock.aspx

May 26, 2014 - Posted by Christina Macpherson | Canada, Uranium