The meltdown at the Fukushima Daiichi nuclear plant last March had uranium investors fleeing for the exits. While the nuclear fuel used to make yellowcake had enjoyed something of a renaissance (after tanking in 2008-09 due to the financial crisis) in the runup to the earthquake and tsunami that rocked Japan, all that changed in the aftermath of the quake.
Uranium stocks and the uranium price plunged after the seriousness of the accident at Fukushima became apparent, although the price remained above lows reached in early 2010. The misery for uranium investors continued when Germany, Belgium and Switzerland announced they would phase out nuclear reactors.
While uranium stocks have moved up in recent weeks, with market leader Cameco for example climbing from $18 to near $24, uncertainty in the sector remains.
Addressing that uncertainty, Uranium Energy Corp. CEO Amir Adnani presented a picture of uranium and nuclear energy missing from last year’s headlines.
Speaking at last week’s Roundup event in Vancouver, Adnani’s primary message is that despite Fukushima, the fundamentals for uranium haven’t changed, and the outlook is bullish.
Adnani is an informed and passionate speaker. What follows is a summary of his key points and slides. Thanks to Uranium Energy Corp. for sending us the presentation.
1. On the outlook for nuclear energy: People in the West take the availability of electricity for granted, but 1.5 billion, or 20% of the world’s population, are without it. There is no credible alternative to nuclear power, therefore nuclear energy is still in the energy mix.
2. On the shelving of Germany’s nuclear program: Germany had planned even before Fukushima to phase out nuclear reactors. Germany represents just 3% of global nuclear capacity. (more)
No comments:
Post a Comment