Uranium Energy Corp., rapidly gearing up to become one of America’s relatively few combination uranium developers and processors, is facing a seemingly insatiable market for the gray metal. Although uranium prices have been volatile, as new power plant announcements duel with investor predictions, Morgan Stanley now expects prices to increase a full 19% next year alone. And the long term demand for nuclear fuel is expected to continue upward, as the number of nuclear power plants steadily increases around the world, the result of the ongoing move away from fossil fuels.
Over the next ten years, the number of nuclear power plants is expected to jump, especially in Asia where both China and India are kicking off major nuclear power initiatives. Worldwide, Morgan Stanley predicts well over 100 new plants to come online, generating a huge increase in demand for uranium.
More than perhaps any other American company, UEC is in line to benefit from this assured and continuous surge in uranium demand. For one, the company has access to one of the biggest uranium exploration and production databases anywhere, providing a massive volume of in-depth information originally compiled over a 37 year period by Kerr-McGee, allowing UEC to identify and acquire the best sites for development. Secondly, unlike other uranium exploration and development companies, UEC actually has its own fully-licensed uranium processing plant, one of only a few in the entire country, and centrally located near some of its key sites in Texas. Add to this the fact that UEC is totally debt free, with working capital of over $26 million, and it’s easy to see why Uranium Energy is ideally positioned to begin filling the demand-supply gap plaguing the nuclear power industry.
For more information, see the company website at www.UraniumEnergy.com
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