Look at Uranium
The Smart Investor’s Look at Uranium: How to Think About the Latest Moves
We’re not optimists. We’re investors.
Optimists hope for the best and act accordingly. Investors do their research and make their decisions based on sound numbers and facts.
An optimist might get excited about nuclear power just because it seems neat.
But an investor wants to dig a little deeper.
Now, we’ve talked about nuclear power in The Grove before. We explained that it was one of the few sources of emission-free power. We also outlined how the public was coming around to the idea of nuclear reactors in their back yards. And we showed you how nuclear power fits into a green-energy economy.
But today, I want to show you something a little different.
We’re investors, after all.
I want to show you how much money you could make in uranium…
Let’s start with the last time the uranium price ran up – it sent uranium explorers soaring. But it started with a historic bottom. On January 1, 2004, an Australian uranium exploration company, Paladin Energy (OTC: PALAF), traded for 5 cents per share.
Uranium miners lost money doing business. It cost the industry $15 to produce a pound of the stuff… that meant they still lost $4 on every pound they sold. That was unsustainable… and a few expert resource investors figured it out early.
Uranium prices were already in an uptrend. They rose from $7 per pound in 2001 to over $11 per pound. By 2005, the uranium price had jumped to $20 per pound and then climbed 75% to $35 per pound by the end of the year.
Investors got excited about uranium too. They piled into anything related to uranium.
By January 2005, Paladin Energy was up to 47 cents. That’s a 460% climb. But by the end of 2006, it had hit $6.85 per share. That’s a 1,357% gain in just two years… but it was a 2,000% gain in just 36 months.
Giant uranium producer Cameco (NYSE: CCJ) had a similar run.
From $3.20 in early 2003 to over $45 per share in 2007 – that’s a 1,300% gain in just over four years.
Those are just two examples of what the industry did the last time we saw a bull market. And it’s what we could see in the next three to four years.
Today, the market is facing headwinds, but that won’t last forever. That’s because we are on the cusp of a brand-new bull market.
As I said, there is a strong global move back into nuclear energy right now. Plants that were slated for shutdown are staying open. And money is pouring into new reactors and innovative technologies.
I’m not saying that we’re definitely going to see runs like this soon. No one can predict the future. But based on our research, these gains are within reach.
I hope you’re ready.
For The Good,
Numbers to Know
The tonnes of Uranium that the country Kazakhstan produced from 1945 to 2021. The most of any country. (World Nuclear Association)
A nuclear bomb needs about 33 pounds of enriched uranium to be operational. (Live Science)
The number of kWh’s that one pound of uranium can produce. The 33 pounds of uranium used to build a nuclear bomb could run a 100 watt light bulb for 385,997 years. (Green Clean Guide)
Founded in 2019, the Clim8 Invest app helped people invest in publicly listed companies and funds focused on tackling the climate crisis. However they were unable to secure further capital to fund the ongoing business and have begun closing accounts. (Clim8)
The caucus will advocate for policies sought by the sustainable investment industry, sometimes called environmental, social and governance (ESG) investment. (The Hill)
Video Of The Week
Want to make your own enriched Uranium?
Well here you go, a little tutorial on how to make some nuclear fuel.