Insiders Buying 2013 Uranium Boom

Brian Hicks

Updated March 20, 2013

It’s been some time now since the uranium market has been considered to be anywhere near an upturn. Given data that appeared throughout the last few months of 2012, however, analysts are now poised to believe that 2013 could indeed be the year for uranium miners.

According to Uranium Investing News, key analysts and industry officials are confident that the uranium sector will see improvements this year, even if spot market activity as of late has been nothing to write home about.

Sources reporting to UIN are predicting that spot prices could average around $55/lb for uranium in 2013, which would be an improvement over prices that are currently seen.

uraniumThe uranium sector is a prime example of one that could see a great deal of growth over a long-term period of time, yet it is undervalued at the moment based upon circumstantial issues.

Since the 2008 financial crisis, recovery has been made in a variety of sectors of the US economy. For uranium, however, a downturn has been since since 2007—the last time the sector had seen anything near what one might consider a high point.

While it would be easy at face value to surmise that a lack of growth in the uranium sector would have mainly to do with poor planning and other logistical issues, the fact remains that natural disaster is most likely the culprit at play here.

Two years ago this month, the largest nuclear disaster since that of Chernobyl in 1986 occurred at Japan’s Fukushima nuclear power plant as a result of a major earthquake and tsunami. The long-standing damage and unspeakable horror that came as a result of this disaster has had lasting consequences on the uranium sector, scaring off investors and also shutting down all but 2 of Japan’s 50 reactors, according to a press release on MarketWire.

Even in the wake of such a disaster, those who truly pay attention to the world of energy and fuel sources know that nuclear power stands to have a very bright future. Clean, efficient, and perhaps not worthy of the negative stigma it consistently receives, nuclear power is likely to have a very big part in the future of modern globalization, and will have an especially significant impact in Asia.

Because much of Asia is looking towards ways to concentrate rural residents into urban communities in the coming years, an effective yet efficient fuel source will be a driving force in whether or not goals are able to be met; nuclear power may be the best option on the table, which spells out lucrative times for those in the uranium mining industry.

Much of the potential future successes in the uranium industry will come down to whether or not investors continue to look at nuclear power and uranium as viable investment options. According to MSN Money, exciting activity is already happening in the sector, with investors looking to fund certain mining companies to help foster the discovery of more uranium.

Alpha Minerals (TSX-V: AMW), a relatively small and unknown stock, has increased exponentially since encouraging positive results in drilling, which is a trend that may well continue if the right resources are placed correctly.

There are a few important things that could act as catalysts for the industry, some of which may even determine whether or not the market sees any bit of an upturn at all.

Perhaps the most important would be whether or not Japan can properly restart its nuclear program in the wake of the Fukushima disaster. While there is still quite a long way to go in order for this to occur, many believe that the country is looking towards ways to positively improve its current nuclear situation.

China is also a key player here. If uranium buying and the building of reactors was to occur in China, the uranium sector could see a significant upturn. Coupled with the reopening of more reactors in Japan, a renewed interest in uranium in China could make all the difference in the world for this undervalued sector.

Uranium and nuclear power still have a long way to go in terms of defeating stigma and seeing an upturn, but it appears as if 2013 could be the start of a brighter period than the sector has seen in years.


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