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
No comments:
Post a Comment