The best way to make money as a mining investor is by owning a company that has exploration success, or being on the right side of commodity price moves.
Last year, NexGen Energy (NXE-TSXV) delivered us 95% share price increases thanks to their Athabasca Basin uranium discovery, Arrow. But we’re holding out for a bigger move. We believe Arrow will get larger through exploration, and that the uranium sector is staged for a substantial recovery.
The sector has struggled since the Fukushima nuclear catastrophe of 2011, but change is finally in the air. Japan is restarting some of its reactors and global nuclear power generation is expected to eclipse pre-Fukushima highs within the next two years, according to Forbes.
The climate change deal reached in Paris late last year will only accelerate the move to clean energy, and nuclear power is among the cleanest, most efficient, and most reliable energy sources. Unlike solar or wind, nuclear power supplies consistent base-load power. And unlike coal, oil or natural gas, nuclear energy is carbon-free.
Demand for nuclear is growing, and it’s coming from both established nations — including the United States and Japan — and emerging economies like China and India, which have opted for nuclear power as a key component of base-load electricity needs.
There are currently 438 nuclear reactors generating electricity globally and another 67 new plants under construction in 15 countries, according to the Nuclear Energy Institute.
China is leading the way as it builds out its nuclear power industry at a dizzying pace, its polluting coal-fired power plants in the crosshairs. There are 30 nuclear reactors operating in China and another 24 under construction, according to the World Nuclear Association. Almost 100 more are planned by 2030.
Importantly, the nuclear reactors now being built are much larger than existing nuclear power plants, requiring even more uranium.
For the rest of this opinion/advertorial, click here: http://ceo.ca/2016/01/11/uranium-stocks-how-the-athabasca-basin-is-shaping-up-in-2016/