Growth Potential In The Uranium Industry

Following the meltdown of the nuclear reactor at Fukushima Daiichi in March of 2011, the price of U308 uranium saw a rapid decline from its base of approximately $70/lb to its current level of $36/lb. With this decline in prices, many uranium mining companies have halted or postponed projects until the price of uranium moves above the cost to mine the commodity. Despite this decline in prices and production, uranium has continued to play a major part in energy generation, scientific research, and powering military submarines and aircraft carriers. This reduction in production and continued use of uranium causes a problem of supply and demand, which points to a great investment opportunity not yet realized by the market. This report addresses the discrepancy of supply and demand, points to similar cycles in the past, and gives recommendations for what stocks are poised for significant gains with the eventual increase in uranium prices.

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