| One small pellet of enriched uranium, about the | | | | is increasing, and mine supply struggles to keep |
| size of a fat pencil eraser, contains about the | | | | up. Between 2003 and 2006 world uranium prices |
| same energy as 3 cords of wood, or 3 barrels of | | | | have increased from $7/lb in 2002 to nearly $70 |
| fuel oil. | | | | lb near the end of 2006. |
| Uranium is key to a successful nuclear | | | | Uranium has also become an interesting |
| renaissance, on which much as been written. | | | | investment area. Uranium blue chip stocks, such |
| Global warming has caused many | | | | as Cameco, and uranium explorers such as JNR |
| environmentalists to throw their support behind | | | | Resources have also done well riding the uranium |
| nuclear energy, an energy source free of | | | | wave higher. Problems have occurred with |
| greenhouse emissions present in "fossil fuels' such | | | | Cameco's Cigar Lake mine recently, which filled |
| as coal and oil. The nuclear industry greatly | | | | with water after the collapse of a freeze barrier. |
| improved its safety record since the Three Mile | | | | Although work is underway to repair the breach, |
| Island accident decades ago. It has also improved | | | | it has caused prices to increase more quickly. |
| reactor on-line efficiency to over 90%, important | | | | Demand for uranium has continued to outpace |
| for both grid stability and investor return on | | | | supply and complications such as this coupled with |
| investment. With coal and oil prices tripling, nuclear | | | | Chinese and Indian demand indicated that the |
| energy by many accounts has become the | | | | fundamental trends of new demand are soundly in |
| cheapest source of electricity in the United States. | | | | place. Enriched uranium recovery is also much |
| New reactors being considered in the U. S. with | | | | more important as enriched uranium at 3% U-235 |
| the application of combined construction and | | | | enrichment is now valued at over $1000/lb. |
| operating licenses, and China alone has plans to | | | | So, uranium is in an exciting position as global |
| build over 30 new nuclear reactors. | | | | growth continues, and nations seek to provide |
| Uranium demand has also increased as a result of | | | | power to support their economic expansions. |
| increased demand for reactors. Uranium fuels the | | | | Uranium recovery is of great importance to |
| nuclear reactor. It is mined from the ground and | | | | developing nations, and the investors in the U.S. |
| refined into "yellowcake", or uranium oxide. The | | | | should seriously look into securing a long-term |
| uranium oxide is converted into uranium | | | | supply in order to not only profit from the boom |
| hexafluoride gas and enriched up to 5% in U-235 | | | | but also ensuring a supply of uranium at |
| for reactors in the U.S. Total world uranium usage | | | | reasonable prices. |