Uranium watchers have had plenty of news to chew on lately. Some of the most positive developments have been completely ignored by Mr. Market, which introduces a unique opportunity for those who haven't lost the faith in yellowcake.
Just as soon as I had identified the missing link in Cameco's (NYSE: CCJ ) commanding chain, the company went ahead and invested in an enrichment joint venture of General Electric (NYSE: GE ) and Hitachi (NYSE: HIT ) . The venture will employ a "third-generation" enrichment technology involving lasers. Unfortunately, the lasers will not be attached to the heads of sharks. Perhaps the fourth generation will get us there.
Aspiring producer Uranerz (AMEX: URZ ) monetized a Mongolian joint venture, selling its 40% stake to an Indian steel and power company. This looks like a wise move, given Uranerz's deep pipeline in the relatively riot-free United States.
Most compelling, though, was today's release by Uranium One, a company that's been just crushed over the past year. The leading uranium miner has been hit even harder than enricher USEC (NYSE: USU ) , which has really been languishing. After making some big acquisitions and some big promises, Uranium One has slashed production forecasts and seen a hasty departure by its chief executive. Investors are justifiably wary.
Still, there's a lot packed into today's announcement. For one, the company found some solid financing, something that smaller Uranium Resources (Nasdaq: URRE ) was unable to do in its attempted buyout of a BHP Billiton (NYSE: BHP ) uranium milling subsidiary. Second, it appears that U-One is in the clear with regard to sulphuric acid supply in Kazakhstan, an issue that has caused some woes for Cameco.
Finally, and critically, the miner's application to increase its South Inkai project to 2,000 metric tons per year from the current cap of 300 was approved by a key Kazakh ministry. That looks like a huge win, and the production pipeline is pretty compelling today. Uranium One's shares aren't the easiest for a U.S. investor to buy, but they may be worth adding to the nuclear arsenal in your portfolio.
I'm giving Uranium One a thumbs-up in Motley Fool CAPS. You can see what other Foolish investors have to say and make your own call right here.
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