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We
have constantly advocated investments in uranium mining (URA),
particularly in friendly jurisdictions such as North America. This support of
the nuclear sector (NLR) has often
been in the face of formidable attacks by naysayers, using every weapon in
their arsenal to denigrate proponents of atomic energy. No other sector in
recent memory has had to withstand such a barrage.
Our patience
and fortitude is being vindicated by recent developments. There is a nuclear
renaissance globally especially in North America. Witness recent announcement
by Rio Tinto (RIO),
who made a "Friendly" offer on top of Cameco's
(CCJ)
"Hostile" bid. New reactors in the U.S. have been approved for the
first time in three decades. Emerging and growing economies like India, and China,
are going full speed ahead, while reports are confirming that even the
Germans are turning reactors back on due to freezing temperatures.
Understandably,
the economic upturn in 2012, and fears of inflation due to skyrocketing oil
prices (OIL) above $110 a
barrel is a factor in this atomic revival. Nevertheless, the world is
becoming increasingly aware of the deficiencies of coal, solar and natural
gas to offer competitive advantages in the growing quest for inexpensive and
safe source of electricity. The uranium miners are outperforming the general
equity market so far in 2012.
 
Observe the Solyndra solar collapse and scandal. Countless tax payer
dollars disappeared, while the private interests were rewarded. Explosions at
coal mines and the contingencies of solar and wind power are becoming
increasingly evident. Despite the Phoenix-like rise uranium investors should
not rush to take their nuclear chips off the table as we feel this is just
the opening act for the world's quest for nuclear ore.
The feeding
frenzy for Hathor (HTHXF.PK) is
only the beginning of major mining interests who recognize that nuclear is a
logical and economical energy source for America's future electricity.
Expanding nuclear into the energy equation will diversify our power demand
and produce inexpensive electricity for our nation far into the future. Our homes,
businesses and environment will be the beneficiaries.
Now everybody
wants to get into the nuclear act. Recently, Fluor (FLR)
Corporation entered the arena with the goal of developing a small-scale
nuclear reactor, which is much more compact than the conventional power
plants that have grown 40-year old beards.
Moreover, the
Department of Energy is supporting the development of smaller and safer
reactors to supplant antiquated and prohibitively more expensive power
plants. These smaller reactors are intended to be safer than the old
Fukushima behemoths.
Source:
westinghousenuclear.com
Bechtel
Corporation is uniting with Babcock and Wilcox (BWC),
which has their own patents on the new generation of small modular reactors.
It must be reiterated that these units can serve to revolutionize the
American energy industry and restore our preeminence in electrifying the
world.
Sooner or
later, the collective corporate consciousness will realize that a new
generation of nuclear energy must be accelerated. Not only to provide a new
birth for American ingenuity, but a plethora of new jobs for an underemployed
nation.
These compact
units can be transported by rail and truck to existing facilities. To build a
new power plant in the conventional mode is exceedingly more expensive than
moving a small unit and plugging it into a standing facility.
We are talking
about economies of scale here as the need for electrical power increases in a
locality. These ingenious devices have been used in this country for many
years. Our military bases, battleships and submarines have been running on
nuclear power for decades. The concept is not novel. The world of investors
is growing increasingly aware that small reactors represent the wave of the
future. It is imperative that this concept achieves early fruition.
The Tennessee
Valley Authority purchased six of these mini-units. Surprisingly, even Saudi
Arabia realizing its peak oil production may have been reached, is building
the King Abdullah City for Atomic and Renewable Energy. ((KA-CARE)) As they
are a desert kingdom water is a rare commodity.
These safe and inexpensive units can operate without water and produce
plentiful electricity for air conditioning.
What does this
all mean for our subscribers as they navigate the current precarious
marketplace? Basically it is our old mantra that development of natural
resources is often a gradual process requiring money and time. With these
considerations in mind the potential payoff in profits is worth the wait.
Rio Tinto (RIO)
serves as a prototype of the patience required when investing in uranium
stocks such as Hathor. Quietly they have been
purchasing Hathor stock. Not only is it Carpe Diem
for them, but its action now presages similar moves by other major
corporations to assure a secure supply of uranium ore for at least a decade
to come.
Hathor is
not anywhere near production, but Rio Tinto is competing with Cameco to assure future supply at a purchase price which
affords a healthy premium. There are other prospects in the Athabasca Basin
just beginning to announce new alterations and discoveries.
Disclosure: I
have no positions in any stocks mentioned, and no plans to initiate any
positions within the next 72 hours.
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