Russian Uranium Deal Benefits U.S. Producers

Fresh off the U.S. Commerce Department’s announcement that it plans to further limit Russian imports of uranium and related products, an analyst is out with an update on Uranium Energy Corp. (NYSE: UEC). 
 
H.C. Wainwright analyst Heiko F. Ihle noted on September 16th that “the U.S. consumes approximately 47.0M pounds of U3O8 per year, and this amendment thereby reduces the Russian commitment from 9.4M pounds of U3O8 to less than 2.4M pounds, for a total reduction of about 75%.”
 
As we noted last week, given that the U.S. currently produces no uranium, this is literally a ground floor opportunity.
 
And UEC already has licensed projects and a processing plant ready to go.
 
Ihle notes this tentative agreement “provides a longer term tailwind,” especially when combined with the recent creation of a US$1.5 billion national uranium reserve. A finalized agreement is expected in early October. 
 
Mr. Ihle reiterated his “Buy” rating and US$3.50 price target. UEC shares currently trade around $1.25 — implying upside of 180%.

You can read our report about UEC’s production profile here.
 
Click here for a video on how we’re finding these top junior mining investments.
 
Yours in profits,
 
Mike Fagan
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.