With the recent closing of the $20 million State of Wyoming loan, Uranerz has all the permits and financing to begin production at its Nichols Ranch In Situ Uranium Mine in the Powder River Basin. The company has attractive off take contracts with some of the largest U.S. utilities and is undervalued compared to its peers. It must be considered immediately as it finds support along its 200 day moving average. As it moves into production in the 1st quarter of 2014, I believe the shares could be rerated higher as it begins to generate revenues and attract value investors. With a low uranium spot price Uranerz has the advantage of having off take contracts at higher prices. This future income may distinguish Uranerz from its peers in the U.S. uranium mining sector in 2014. The uranium sector is undergoing a major process of being cut off from cheap Russian uranium which came from nuclear warheads. The U.S. is the largest consumer of uranium with 104 nuclear plants and has relied on imported uranium from Russia over the past twenty years. However, that has come to an end in 2013. For many years I have been preparing my readers for this time when the market would go into a major supply deficit. Unfortunately, the wildcard that was dealt to my readers many whom are experienced uranium investors was the Fukushima disaster caused by a once in a generation earthquake. Despite that event, I predicted at that time that new nuclear reactors will continue to be built despite others who claimed the death of the nuclear sector. Now close to two years after Fukushima there are more nuclear reactors being built than before the tragedy. Despite following this sector for many years, new investors have the opportunity to get in at ground floor prices.
Disclosure: Author/Interviewer owns URZ and the company is a sponsor on my website.
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