Wyoming is the biggest U.S. state for uranium mining and production. So the rare recent October snowstorm, which dumped a whopping 33 inches of snow to parts of Wyoming, may actually reignite investor interest in the uranium space, a sector still largely out of favor post-Fukushima.
Cameco (CCJ 2.07%), the largest U.S. uranium producer, has a uranium processing facility in Smith Ranch – Highland. According to various maps, Smith Ranch-Highland is located in Douglas, Wyoming. Douglas is smack between Casper and Lusk, two areas that received at least 8 inches of snow. Cameco's website lists Smith Ranch – Highland as the largest uranium production facility in the U.S. with a annual production capabilities of 5 million pounds U3O8.
Roads typically used to get back and forth from uranium mines are often less than desirable and do at times involve going off-road in order to reach projects. Therefore the impact of this snowstorm may become a big issue amplified on upcoming earnings calls for uranium miners in or around Wyoming. Any delays may also impact utility giant Exelon (EXC +1.94%), which is the largest nuclear fleet operator in the U.S.
With uranium prices at 8-year lows ($34 per pound), a rare early winter blast and any delayed uranium production could create bullishness in the depressed Global X Uranium ETF (URA 2.18%). China and yes, even Japan, are moving forward with nuclear power, so the stigma surrounding the use of nuclear power could soon quickly be buried in the Wyoming snow.
