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« Michael Blum: Headwinds or Clear Sailing for MLPs? | Main | Andrew Coleman: E&Ps with Margins for Error »
Wednesday
Feb022011

Ur-Energy Incorporated: Up 300% in 6 months

URE Chart 03 Feb 2011.JPG


We bought Ur-Energy Incorporated (URE.TO) on the 23rd April 2007 at $4.75 and we also bought it again on the 24th August 2007 when we acquired more stock at $3.03, giving us an average price of $3.89. Yesterday it closed at $3.20 having gained around 300% in the last 6 months thus restoring a little more faith both in this stock and the uranium sector itself.

This stock also happens to be one of the favorites of Alka Singh, senior metals and mining analyst at Rodman & Fenshaw who appeared on BNN yesterday and had some encouraging words for investors. She kicked off talking about the increase in demand from China, India, North Korea and Russia. Alka reckons that China currently has 13 nuclear power plants in operation, 5 in construction and another 30 in the planning stage leading into a demand for 50 million pounds of uranium per annum.

Alka Singh.JPG

Taking a quick look at the World Nuclear Association we found that they report similar figures as follows:

Mainland China has 13 nuclear power reactors in operation, more than 25 under construction, and more about to start construction soon. 

Additional reactors are planned, including some of the world's most advanced, to give more than a ten-fold increase in nuclear capacity to at least 80 GWe by 2020, 200 GWe by 2030, and 400 GWe by 2050.
 
China is rapidly becoming self-sufficient in reactor design and construction, as well as other aspects of the fuel cycle. 

India has a similar demand with 20 nuclear plants in operation, 5 in construction and 25 in the planning stage. In total 441 nuclear reactors are in operation worldwide.


Turning to the supply side Alka mentions a few difficulties including the shut down of the Ranger Mine in Australia which will be closed for 12 weeks due to the possibilities of flooding in that region. Then there is also the announcement by AREVA that one their operations in Namibia will be delayed some 12 months and not come on line until 2013. And so the supply side is experiencing a bit of a squeeze at the moment.

The good news out of Ur-Energy is that they now have their NRC permit and are hopeful of gaining the remaining permitry by mid 2011, this would then enable them to start production in early 2012, which is not too far away.

To see the recent interview in full please click here.


Ur-Energy is a dynamic junior mining company focusing on exploration and development of uranium properties in the United States and in Canada. Ur-Energy trades on the Toronto Stock Exchange under the symbol URE and on the NYSE: Amex under the symbol URG. Ur-Energy is completing permitting activities to bring its Lost Creek Wyoming uranium deposit into production and to build a two-million-pounds-per-year processing facility. With adequate funds and technical depth unmatched among North American juniors, Ur-Energy is well positioned to be the next uranium producer in Wyoming. In addition, Ur-Energy’s project pipeline is supported by an extensive, valuable exploration database and intensive analysis programs, providing for great exploration and development potential. 



Ur-Energy Incorporated has a market capitalization of $317.31 and a 52 week low of $0.76 and high of $3.35 with 99.16 million shares outstanding. The future for this company looks good in our humble opinion so you may want to add it to your watch list and observe how they go from here.

As the chart below shows the spot price for uranium stands at $70/lb and appears to be progressing fairly well at this stage. However, as we understand it the spot price has since increased by another $3.00/lb so think in terms of $73.00/lb and allow the chart time to catch up.

Uraniun spot price 02 feb 2011.JPG
......................................

Over in the options trading pit we have just closed 3 more winning trades, so we now have 62 winners out of 64 trades, or a 96.87% success rate.


If you have any questions regarding these trades please address them through their site where they will be handled quickly and I hope efficiently.


sk chart Jan 2011.JPG


The above progress chart is being updated constantly. However, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today, before we decide to cap membership.

Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.


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Reader Comments (1)

Bob,

I am looking into rare earth too.

http://club.ino.com/trading/2011/02/rare-earth-update/

http://stockcharts.com/freecharts/gallery.html?MCP <<< P.O. $70 here as well. Short squeeze on the way??? Extremely volatile stock.

For iron ore, VALE http://stockcharts.com/freecharts/gallery.html?s=vale may be worth checking out???

Don't think I discussed PUDA (coal). While I diversify from gold/silver and oil/gas, I am still putting all eggs in one basket (commodity).

I think uranium may be safer as it has based for a couple of years. Do you buy stocks or options re: uranium?

Interested in the above?

EP

February 3, 2011 | Unregistered CommenterEP

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