Uranium Didn't Go Anywhere, Did You?

Online, July 25, 2011 (Newswire.com) - COMMENTARY-ProspectingJournal.com-While it's perhaps a bit early to announce the rebirth of the uranium sector, signs are now pointing to a steady comeback as governments and businesses are returning to one of their favourite obsessions: worrying about-and profiting from-the world's energy needs.

For someone invested in uranium, early 2011 was a classic textbook example of an "unforeseeable" external event. Just like a very convenient Act of God prevents some people from claiming insurance when a tree falls on their car in the U.S., so does a tidal wave prevent nuclear nuts from thinking that their stocks are safe. The ensuing negative worldwide sentiment, however, was just political vote-pandering for unrealistic environmentalism . . . Watch the anti-nuclear politicians backflip in a couple years.

Uranium prices have now arguably stabilized and related equities are up ten per cent in the last three weeks; in other words, it may be safe to assume that we have found the bottom. David Talbot at Dundee Capital Markets stated the obvious, pointing out that uranium stocks are trading well below their real value. And unless wind, solar and tidal energy manage to produce the same energy output as fossil fuels in the next couple years, uranium interest will likely buzz its way on up.

If you scooped up uranium stocks after the crash, good thinking. You can thank the media for this cheap buy, as they pumped a relentless amount of fear into the newswires, while somehow forgetting to mention that there are over 60 reactors under construction in 16 countries. And how many people know that Germany only represents 5 per cent of the demand for uranium? I say let them go "green."

In terms of low uranium prices deterring miners, recent activity shows promise. Bannerman Resources Ltd. (TSX: BAN), a Perth-based uranium deposit developer, recently received a takeover offer from a Chinese mining company. The U.K. has revealed plans for eight new reactors. Russia, China and India-the most important markets-have all reconfirmed their support for nuclear energy. Cameco is on the lookout for acquisitions (buying them while they're cheap). And First Uranium Corp's (TSX: FIU) shares soared more than 50% on Friday after the company announced that AngloGold Ashanti Ltd. agreed to buy nearly 20% of the miner for $28.2 million.

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