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Gold/Mining/Energy : Uranium Stocks -- Ignore unavailable to you. Want to Upgrade?

To: traacs who wrote (30)	1/6/1998 10:36:00 AM
From: Sudhir Khanna	Read Replies (1) \| Respond to of 30136

FORTUNE FAVOURS THE BOLD "Civil uranium inventories in establishing market economy countries have fallen. Further available stocks, comprising excess inventories of the US government, Russian stockpiles, civil reprocessing, and military HEU, are unlikely, for political and technical reasons, to rapidly enter the civil market. Additional mine production will be needed. Expenditure on uranium production, currently insignificant, will need to rise. A secure nuclear industry requires secure uranium supplies and to achieve this security, some readjustment will be necessary. Participating in this readjustment from the investment point of view, will prove to be rewarding." The best way to play Uranium is to invest in stocks that have revenue growth, exploration potential, and leverage to the price of Uranium. There are several such stocks. This way, your opportunity costs will be lower since the investment is expected to appreciate due to revenue growth instead of a bet on the price of Uranium alone. Some facts: "Uranium's sole commercial use is as a fuel for nuclear power generators. Nuclear power plants generate approximately 17% of the world's electricity, with the United States being the largest producer, followed by Japan, Taiwan and South Korea. The uranium industry is international in scope and is characterized by a small number of companies operating in a few countries. In 1995, six companies (Cameco, Cogema, Energy Resources of Australia, RTZ, Uranerz and WMC Ltd.) produced almost 70% of total western world output." There are very few junior producers. If you agree with what I said at the begining, then we should be looking for a junior that is profitable at the current Uranium price and is actively adding reserves through exploration. Sincerely, Sudhir Khanna, P.Eng. Editor, The RESOURCE INDICATOR Staking VALUE before others