Sunday, February 16, 2014

Seeking Alpha: Ur-Energy Is A Fine House, But The Neighborhood Is Scary

Ur-Energy (URG) has a lot of things to its credit - the company has a quality asset in its Lost Creek mine, expansion/growth potential with assets like Shirley Basin and Lost Soldier, and an attractive cost structure. It also doesn't hurt that Ur-Energy represents a meaningful chunk of the U.S.'s low-cost domestic supply of uranium for its nuclear power fleet.

On the other side of the ledger is a uranium market that is still in pretty rough shape. Weak prices have curtailed production and exploration across the world, but spot prices are still hovering around multiyear lows. Likewise, while there is legitimately bullish talk about the construction of new nuclear plants in China, India, and the Mideast, not as much attention is being paid to whether aging plants in Europe, North America, and Japan will be replaced. All in all Ur-Energy shares don't seem overpriced today, but the risk-reward isn't quite enough to get me pounding the table to buy.

Continue here:
Ur-Energy Is A Fine House, But The Neighborhood Is Scary

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