This is short and to the point! Solar, wind and every other so called clean energy system so far developed or on the ‘to do’ list will not ‘cut the mustard’ in making up the world wide electrical power shortfall as carbon fuels are either phased out for political reasons or simply as resources become scarcer.
China has eleven nuclear power reactors in commercial operation, twenty two more under construction and expected to come on stream by the end of 2010 and has plans to build a further one hundred and thirty two more!! With the West at long last waking up to the realities of the situation, with the honourable exception of the French, nuclear power and uranium stocks are set to soar.
Russia has been a principal supplier of depleted uranium from its nuclear weapons stock pile but that has become just about exhausted so the increasing demand for uranium ore, known as yellowcake, must come from the mining sector.
Cameco is the worlds largest producer plus there are a number of other miners worth a look. Australia has the worlds largest uranium reserves and is the second largest producer with Canada taking top spot with the largest mines and is biggest exporter.
Beware of the myriad of junior and highly speculative uranium non producing miners, developers, explorers etc. and assorted con artists and stick to the big boys. We quite like Denison Mines for a gamble and are shareholders. Cameco should not be ignored.
Areva, a company largely owned by the French government leads the way in nuclear plant technology and is involved with the majority of planned nuclear power plants. It is worth doing some research as there are many other companies that will benefit hugely from the planned massive increase in these plants, whether it is technological, construction or the supply of materials.
Investors should also take note of the advances made in the nuclear energy sector since the Chernobyl and Three Mile Island incidents. Safety technology and standards have improved, so we are led to believe, to the extent that further dangerous incidents of this magnitude are no longer possible.
Even the Green lobby are recognising that the nuclear option is the lesser of the other ‘evil’ options.
2010 will a difficult and dangerous year for investors. The nuclear sector looks to us to be a niche market where the world has run out of viable electrical energy options and, at this moment in time, we can think of no other with this potential for profit whatever happens to global economies .