Our Contrarian Bet on Uranium is About to Pay Off
by Mike Fagan
Last week, the US Senate Committee on Appropriations released its funding measures for next year including $150 million for the long-awaited US Uranium Reserve.
The bill, which still needs to be approved, but appears to hold broad bipartisan support, will create a domestic Uranium Reserve in an historic move US uranium firms have long argued is requisite for getting America’s uranium production sector back to a global leadership position.
UEC president & CEO, Amir Adnani, stated via press release:
An important thing to note is that in the domestic uranium space the permitting process can be extraordinarily long — oftentimes stretching 5-10 years in order to get a project fully permitted for mine construction.
The next golden profit window is opening right now.
The recent selloff in gold stocks is being backstopped by incredibly strong gold miner earnings.
Another gold stock price explosion is coming and now is the perfect time to get positioned.
The “Golden Window” for 1,200% profits is now wide open.
Uranium Energy (UEC) – which has permits in-hand in multiple jurisdictions – stands above its peers as one of the better positioned companies in the space:
- UEC’s Reno Creek project in Wyoming is the largest permitted, pre-construction ISR (In-situ recovery) uranium project in the US.
- UEC’s hub-and-spoke operations in Texas are anchored by the fully built and licensed Hobson Processing Facility which is central to the company’s Palangana, Burke Hollow, and Goliad ISR uranium projects.
- UEC also controls a pipeline of US uranium projects in Arizona and New Mexico.
- UEC’s chairman is former US Energy Secretary, Spencer Abraham.
Equally important is that ISR projects – like those controlled by UEC – are considered a much lower-cost and much more environmentally-friendly alternative to conventional uranium mining. In fact, ISR is now the preferred uranium mining methodology in the United States.
UEC boasts a near-term extraction profile of 4 million pounds U3O8 per year from its Wyoming and South Texas ISR projects — putting the company in the driver’s seat for near-term, low-cost domestic uranium production.
Right now is an ideal time to be taking a closer look at Uranium Energy Corp. (NYSE American: UEC) as a strategically positioned company with multiple brownfield uranium assets in the hotbed of previous US uranium production.
In the interim, we’ll be keeping a close eye on the price of uranium and on what we anticipate will be swift passage of the US Uranium Reserve bill.
We’ll keep you updated here as always.
If we’re able to get some sustained upward price action in uranium from current levels around $30 per pound toward the ideal $50 mark — UEC could be one of those companies that multiplies in value very quickly.
To be clear, uranium is still a contrarian play. Yet, that’s precisely where the largest percentage gains often materialize as the investing herd catches up to what we’re already seeing.
Read our most recent report on Uranium Energy Corp.
Yours In Profits,
Editor, Resource Stock Digest
Mike Fagan has mining in his blood. As a teenager he staked countless gold and silver properties in Nevada alongside his dad, Brian Fagan, who created the Prospect Generator model that’s still widely used today in the resource space. One of those staking projects was put into production by a major Canadian mining company — a truly rare and profitable experience. That background uniquely qualifies him as a mining stock speculator. One of the most well-known names in the business, Mike is now putting that experience to use for the benefit of Resource Stock Digest and Hard Asset Digest readers.