BUY URANIUM MINING STOCKS
After the great crash of the world stock markets and the dark days of the Greatest Depression indisputably begins, the mining stocks will be the first to rise to unimaginable heights while the rest of the markets languish in their shallows and misery. The rush to mining stocks even remotely related to Uranium and other natural resources will be overwhelming. When inflation and then hyperinflation sets in and the cut off of overseas oil happens, the desperate scramble for alternative energy will begin in a panic. The US Dollar is finished as the petro dollar and as the world currency. The coming boom in fuel efficient cheap energy will have nothing to do with the “Green Movement”. It will be about survival of a country in a world of decreasing natural resources at the time of the Greatest Economic Depression the world has ever seen. When collapse of the consumer stocks that are peddled on the mainstream business channels happens, the smart money that has already exited the market by now will continue to pour into the natural resource stocks at a feverish rate. Uranium stocks will be one of those major sectors.
The size and financial stability of a company or even if the company exists in a viable form will not mater in the rush to grab every stock off the shelf. The large major stocks will go first, then followed by the mid tier exploration/producers, then the exploration companies and in the end everything else with Uranium mining company following it's name. Companies that are priced in the few pennies (.01-.03) to the depths of the sub-penny range of .0001 will attract the wild eyed seekers of fortune like the the 49'ers in the California gold rush. The micro-micro cap stocks in the .001-.01 range may or not may not exist in reality but will still be traded on the Pinksheets at rapidly increasing prices.
As long as there is a buyer and a seller companies will trade. I once trade in and out of one such company taking a regular 50% profit when the company did not exist as a working company for many years. Fortunes will be made in the Uranium mining companies in the next few years. Many of them will be unheard of companies currently below the $1.00 per share level. The very Grey area below the .01 level have also tremendous potential to trade in and out of regardless of the the companies situation. The Tide Floats All Boats and so will the coming mania rush to the natural resource companies especially Uranium mining companies. The below article by Bryon King says it straight forward and in simple terms about the future of the Uranium mining industry.
The nuclear industry is about to experience a breakout, and it's going to be a major investment opportunity. Lately, I've been talking with people in the nuclear business, from uranium miners to reactor designers to government minders and check signers. Everything I've heard leads me to believe that 2010 will be a good year - finally - for the nuclear industry.
Whether you want to look just at home in the US or all around the world, the nuclear story is good and getting better. The main use for nuclear power is to generate electricity. Let's start with a look at how the world generates its electricity.
There are 436 operating reactors in 30 countries around the world, 104 of which are in the US. These reactors produce just shy of 15% of the world's electricity. The best data are that 50 reactors are currently under construction. There are 137 more being formally planned, and another 295 reported proposals seeking construction approval.
And what about China and its nuclear ambitions? According to an article in the Dec. 16, 2009, edition of The New York Times, "China is preparing to build three times as many nuclear power plants in the coming decade as the rest of the world combined."
According to the Times, China's "civilian nuclear power industry" (and rest assured there's a Chinese military nuclear power industry as well) has 11 operating reactors, with as many as 10 new reactors per year planned for the next 15 years. That's 150 new reactors just in China.
So where will the world nuclear industry obtain the uranium fuel for all these new reactors? That's a darn good question. Just in the US, annual uranium use for the nuclear power industry is about 55 million pounds. The US produces less than 4 million pounds of this fuel - about 7% - and imports the rest.
But despite the large US demand for uranium imports, the world uranium mining industry lacks adequate capacity to meet demand. A large amount of the nuclear fuel imported into the US comes from decommissioned nuclear warheads from Russia. The warheads trace their origins back to the Soviet Union.
If you thought the US had a problem with imported oil, now you know that there's an issue with uranium fuel as well. Of course, I'm not the only one who knows this. It's a national security issue, and I can tell you that things are about to change in a very big way.
So let's discuss the fuel, uranium, which is priced and traded as an oxide, U3O8. (It's a yellow powder, often referred to as yellowcake.) The price of uranium oxide peaked in June 2007, at about $135 per pound. The price declined from there, and plummeted in late 2008 with the global crash and stock market meltdown (no pun intended).
Uranium oxide currently sells in the mid-$40s per pound. This price is about as low as it can be, according to the people with whom I've discussed the matter. One producer told me, "At current prices in the $40s, I can barely pay the overhead to keep the plant open. Below these prices, I'll shut down and let other people lose money. But if prices recover, any increase goes straight to my bottom line. So I expect to make money in this business, and soon."
What did this fellow mean? Both the mining and purchasing communities agree that the price of uranium is headed upward in 2010. The reason is that the Russians are running out of old warheads and utilities are back in the market for more supply.
The near-term viewpoint is that we'll see uranium oxide prices in the mid-$60s during 2010. Prices will trend even higher over the medium term, with some forecasters predicting $250 and higher over the long term.
Below are two penny stock Uranium mining companies that I own. Buy them now and hold then for the next 3-5 years and they will make you rich
CanAlaska Uranium CVVUF http://www.canalaska.com
When uranium comes back in favor this company will take off in price. Governments around the world are sizing up nuclear energy – a means of generating electricity – as an alternative to expensive fossil fuels such as crude oil and coal, which pollute the atmosphere when burned. China and other emerging markets are also ramping up nuclear power production as they’re compelled to reduce greenhouse gas emissions and cut their dependence on foreign oil. It’s the same story in the United States and other advanced economy countries – including France and Japan – the two largest nuclear power markets. The drive to cut emissions, not only in Asia, but also in Europe and elsewhere is a very important positive impulse for uranium prices. Statistics on nuclear reactors tell the story. According to the World Nuclear Association there are 435 operating reactors around the world, 53 are under construction, 136 are planned and 299 have been proposed. Also, we’re at the point where uranium prices have already crashed. Spot prices have tanked more than 67% from their all-time highs just three years ago. The way to play uranium is to buy her after a correction – which is exactly where we’re at today. CanAlaska boldly states that their mission is to find more large deposits. When the rush back to nuclear power happens as the price of petroleum and gasoline goes through the roof, mining companies like CanAlaska stock price will also go through the roof. Just look at all the foreign companies that have an interest in it. They are not doing it for their health. They know what is going to happen and are stocking up on companies like CanAlaska. The company is undertaking uranium exploration in twenty 100%-owned and three optioned uranium projects in Canada's Athabasca Basin the "Saudi Arabia of Uranium". Since September 2004, the Company has aggressively acquired one of the largest land positions in the region, comprising over 2,500,000 acres (10,117 sq. km or 3,906 sq. miles). To-date, CanAlaska has expended over Cdn$60 million exploring its properties and has delineated multiple uranium targets. CanAlaska's geological expertise and high exploration profile has attracted the attention of major international strategic partners. Among others, Japanese conglomerate Mitsubishi Corporation has undertaken to provide the Company C$11 mil. in exploration funding for its West McArthur Project. Exploration of CanAlaska's Cree East Project is also progressing under a C$19 mil. joint venture with a consortium of Korean companies led by Hanwha Corporation, and comprising Korea Electric Power Corp., Korea Resources Corp. and SK Energy Co, Ltd. Exploration has recently commenced on the Poplar Project with Chinese mining partner East Resources Inc., comprising a potential 100,000 metres of drill testing. In addition, Canadian explorer Kodiak Exploration has also optioned the McTavish Project to advance exploration with the goal of attaining a 60% project interest earn-in by delineating a minimum of 35 million pounds U3O8. Buy it cheap, it will be the last time you can.
Vancouver, Canada, February 15th, 2010 - CanAlaska Uranium Ltd. (TSX.V -- CVV) ("CanAlaska" or the "Company") is pleased to announce that as at February 12th, 2010, MC Resources Canada Ltd., a wholly--owned subsidiary of Mitsubishi Corporation, completed the Cdn$11 million investment specified under the project's option agreement and formally earned a 50% ownership interest in the West McArthur uranium project. A 50:50 joint venture has been established between CanAlaska West McArthur Uranium Ltd., a wholly-owned subsidiary of the Company, and MC Resources Canada Ltd. CanAlaska West McArthur Uranium is the Operator of the joint venture. To facilitate the long-term planning of the project, Mitsubishi Corporation and CanAlaska have outlined a Cdn$20 million five-year program of exploration that will progressively test the current targets areas and reach across the remainder of the property to evaluate other target areas.
The Company has already commenced exploration work for the 2010 Winter season. Geophysical crews started fieldwork in preparation for a $3.5m drill program on the West McArthur project. A drill contract for a minimum of 6,500 metres of drilling, utilizing two drill rigs has now been executed with Cyr Drilling International Ltd. Cyr Drilling has worked with the Company on drill projects at West McArthur since 2005, and is well-provisioned to complete this winter's drill program. The Company has been particularly anxious to re-commence drill testing on the Grid 1-2 area of the project, which has been in hiatus for the past two years. Prior drilling by the Company in this area had intercepted trace uranium mineralization in three separate drill holes. The nature of the alteration associated with the drilling, as well as from earlier geophysical surveys, indicated a number of discrete targets "A" to "D" in the Grid 1-2 area, as shown in Figure 1, which have been the subject of intense review,re-testing and prioritization for the past field seasons. At least seven drill holes will be completed over the winter season on these high-priority targets.
Peter Dasler, President & CEO, commented, "We are very pleased to have been able to work with Mitsubishi for the past four years in expanding the knowledge of this very strategic project. We are located in a very mineral-rich area, adjoining one of the largest uranium mines in the world. Our preliminary work and drilling has indicated the style of targets that hold promise for significant uranium discovery. The strength and continued support of Mitsubishi Corporation is allowing us to reach for our goals."
The Qualified Technical Person for this news release is Peter G. Dasler, P. Geo.
Belmont Resources TSX.BEA www.belmontresources.com
Still does maintenance of its Uranium City area-Saskatchewan properties, and due diligence on further property acquisitions. Oil and natural gas will all head higher in the next two years as the truth about just how little easily accessible oil is left. All natural resources will move higher rapidly but the oil and gas will lead the way on the consumable side of the equation and Gold and Silver on the “real” money side of it. Governments around the world are sizing up nuclear energy – a means of generating electricity – as an alternative to expensive fossil fuels such as crude oil and coal, which pollute the atmosphere when burned. China and other emerging markets are also ramping up nuclear power production as they’re compelled to reduce greenhouse gas emissions and cut their dependence on foreign oil. It’s the same story in the United States and other advanced economy countries – including France and Japan – the two largest nuclear power markets. The drive to cut emissions, not only in Asia, but also in Europe and elsewhere is a very important positive impulse for uranium prices. Statistics on nuclear reactors tell the story. According to the World Nuclear Association there are 435 operating reactors around the world, 53 are under construction, 136 are planned and 299 have been proposed. Also, we’re at the point where uranium prices have already crashed. Spot prices have tanked more than 67% from their all-time highs just three years ago. The way to play uranium is to buy her after a correction – which is exactly where we’re at today. If you believe that uranium will make a come back for nuclear power generation then this company's current price is a bargain. Listed on the Canadian Exchange, no longer on the American markets. Buy it dirt cheap now.