Investor Opportunity

Currently more than 16% of the world's electricity comes from nuclear reactors
— Editors of Stock Interview

The demand for uranium is clear and very predictable. As industrialized and developing nations push toward clean alternative energy sources, nuclear energy stands apart from solar, wind and tidal energy reserves because it is vastly more economical. More than 16% of the world’s electricity comes from nuclear reactors—a total of 2400 billion kWh—equal to the total energy produced by all sources worldwide in 1960. See production and consumption chart.

At present 450 nuclear reactors operate in 31 countries (see maps of where the worlds nuclear reactors operate), consuming a total of 160 million pounds of uranium per annum. With 64 more plants are planned for the next decade (28 of which are already underway) the demand is steadily escalating. With the increasing uranium demand, the spot price has risen accordingly. In only five years it has leapt from US$7 to over US$85. See electricity generating cost projections by 2010.

Operational uranium mines currently provide only half the quantities required to supply nuclear energy needs. The deficit is being met by ex-military material, civil stockpiles and other recycling methods—sources which are nearly depleted. When another 28 reactors are complete, the annual demand will jump by 30 million pounds.
[World Nuclear Association. 06 Feb. 2007. http://www.world-nuclear.org]

As the gap between supply and demand expands steadily, the price of uranium yellow cake is poised for a steep climb.