Denison Mines (DNN) (USU) (URRE) (URZ) (NUCL) Closed Mixed in Monday Trading

Shares of uranium and nuclear companies like Denison Mines Corp (AMEX:DNN), USEC Inc. (NYSE:USU), Uranium Resources, Inc. (NASDAQ:URRE), Uranerz Energy Corporation (AMEX:URZ) and iShares S&P Global Nuclear Energy Index (Nasdaq:NUCL) closed mixed Monday, April 25th, as the initial shock of the nuclear challenges in Japan from the earthquake start to gradually wind down.

The headline that the nuclear sector is going to be abandoned and replaced by other so-called "green" energy is of course ludicrous, as solar and wind turbines are a poor and unpredictable source of energy, and will never be able to supply, or come close to supplying, the growing energy needs of the world.

While it's obvious the nuclear industry will go over safety measures to ensure the highest safety levels possible, the idea of taking an extremely rare occurrence like an 8.9 earthquake in Japan as the worst case scenario to determine nuclear strategies isn't going to happen, even though the industry will be safer and better for making any improvements they can.

Uranium suppliers, either way, will continue to enjoy growth going forward, regardless of the response to the industry in the aftermath of Japan, as existing nuclear plants will continue to operate for years into the future, and will need uranium to power them.

Who could be hurt more, depending on if they have any courage to continue on in the sector or not, are General Electric (NYSE:GE) and Siemens (NYSE:SI).

Uranium One (UUU) (NLR) (UEC) (SO) Closed Mixed in Monday Trading

Shares of uranium and nuclear companies like Market Vectors Nuclear Energy (NYSEArca:NLR), Uranium Energy (AMEX:UEC), Uranium One (TSE:UUU) and Southern Company (NYSE:SO) closed down Monday, April 25th, as the initial shock of the nuclear challenges in Japan from the earthquake start to gradually wind down.

The headline that the nuclear sector is going to be abandoned and replaced by other so-called "green" energy is of course ludicrous, as solar and wind turbines are a poor and unpredictable source of energy, and will never be able to supply, or come close to supplying, the growing energy needs of the world.

While it's obvious the nuclear industry will go over safety measures to ensure the highest safety levels possible, the idea of taking an extremely rare occurrence like an 8.9 earthquake in Japan as the worst case scenario to determine nuclear strategies isn't going to happen, even though the industry will be safer and better for making any improvements they can.

Uranium suppliers, either way, will continue to enjoy growth going forward, regardless of the response to the industry in the aftermath of Japan, as existing nuclear plants will continue to operate for years into the future, and will need uranium to power them.

Who could be hurt more, depending on if they have any courage to continue on in the sector or not, are General Electric (NYSE:GE) and Siemens (NYSE:SI).

Rio (RIO) Says Iron Ore, Coal Production Down in 1Q

Not unexpectedly, Rio Tinto (NYSE:RIO) announced coal and iron ore production in the first quarter fell as a result of the heavy rains which hampered mining in Australia. Also affected was uranium output.

Production of iron ore fell from 50.1 million tons the prior quarter to 41.9 million metric tons. Hard coking-coal production dropped to 1.6 million tons, a 29 percent decline.

Full year earnings for Rio and major competitor BHP Billiton (NYSE:BHP) are expected to come under some pressure from the slowdown.

Evens so, Rio estimates it'll produce about 191 million tons of iron ore in 2011, up from the 184 million tons produced in 2010.

Paul Galloway, a Sanford C. Bernstein Ltd. analyst, wrote today in a note to clients, “Given this relatively robust full year production guidance, we view the substantial miss in iron ore production as a largely one-off occurrence and would expect to see improvement in the short-term. The overall impact on full-year 2011 earnings estimates in the market may be smaller than might initially be expected.”

Chief Executive Officer Tom Albanese said concerning production, “Our Australian coal, iron ore, uranium and alumina operations were affected by the extreme weather in the first quarter. Most are recovering and are benefiting from continued strong prices.”

Rio was trading in New York at $71.22, falling $0.91, or 1.26 percent, as of 2:15 PM EDT.

Uranium (CCJ)(URZ)(DNN)(URG)(URRE)(UEC) Sees Big Rebound Friday

Uranium companies exploded upward Friday, taking back much of the losses after temporary concerns over uranium demand in light of possible slowdown in the nuclear industry.

Shares of Ur Energy Inc. (AMEX:URG), Uranium Resources, Inc. (Nasdaq:URRE), Uranium Energy Corp. (AMEX:UEC), Cameco Corp. (NYSE:CCJ), Uranerz Energy Corp. (AMEX:URZ) and Denison Mines Corp. (AMEX:DNN) up all soared on the day.

Those bold and wise enough to pour their money into the companies after the sell off have made a lot of money, as the stocks were considered oversold as most countries reiterated their commitment to a nuclear strategy to help meet energy needs.

Denison closed Friday at $2.61, gaining $0.19, or 7.85 percent. Uranerz Energy Corp. closed at $3.10, up $0.23, or 8.01 percent. Cameco closed at $29.40, up $1.30, or 4.63 percent. Uranium Energy Corp. ended the day at $4.28, gaining $0.44, or 11.46 percent. Uranium Resources closed at $2.17, rising $0.54, or 33.13 percent. Ur Energy Inc. closed the session at $1.70, up $0.26, or 18.06 percent.

Denison (AMEX:DNN) Rebounds, Cameco (NYSE:CCJ) Still Punished

Shares of Denison (AMEX:DNN) moved up on Thursday, while Cameco (NYSE:CCJ) continues to get punished on uranium and nuclear concerns from the effects of the earthquake in Japan.

Denison may be getting action on its lower valuation, although Cameco has dropped significantly since last Friday as well. When measured by percentages, Denison has fallen the furthest, and is in a position to benefit investors quicker than Cameco, which has dropped by almost 25 percent, while Denison had dropped by over 33 percent at its five-day low.

The question is whether or not the uranium and nuclear stocks have hit their low, or there's more volatility to come.

Until the situation in Japan is clarified on the nuclear front, it'll be a up and down ride in this sector, as well as other affected by the disaster.

Cameco closed Thursday at $28.10, down $1.54, or 5.20 percent. Denison closed at $2.42, gaining $.13, or 5.68 percent.

Cameco (CCJ) CEO Says Nuclear Renaissance Will Continue

While acknowledging there could be a temporary slowdown in the nuclear industry because of Japan nuclear struggles, Cameco (NYSE:CCJ) Chief Executive Officer Jerry Grandey doesn't see it having a negative impact on the long term.

Grandey says he firmly believes the nuclear renaissance will survive the unfolding Japanese nuclear disaster, as the 60-plus power plants now under construction around the globe continue to forge ahead.

During a conference call with analysts, investors and news media Monday, Grandey said two Japanese utilities are directly affected. However, even if they were to temporarily deter part of their deliveries, Cameco would still be well within its guidance for their year, he emphasized.

Of the 54 nuclear power stations in Japan, 11 are now down due to the earthquake and the tsunami, Grandey said. Nevertheless, he explained, "Even if the 11 units remain down, it would not be all that significant to Cameco."

And, Grandey stressed, Cameco will not shift its uranium portfolio as a consequence of the events in Japan. Nor does he anticipate that the Saskatchewan-based uranium miner will have to sell back into the spot market.

No long-term contracts have been canceled at this point, Grandey noted.




source

Cameco (NYSE:CCJ) Soaring on Growing China Uranium Demand

Since June Cameco (NYSE:CCJ) has soared, as they signed an agreement with China National Nuclear to supply 23 million pounds of uranium concentrate through 2020.

In November they signed a another deal, this time with China Guangdong Nuclear to supply them with 29 million pounds of uranium through 2025.

The companies are making the long-term deals in order to lock in supply as the nuclear energy market has come back in favor, and companies around the world are starting to, or are planning to build, hundreds of nuclear reactors over the next couple of decades to help meet their energy needs.

China's goal is to increase their generating capacity using nuclear power to 5 percent by 2020. At this time nuclear is two percent of their generating capacity.

As for Cameco, they've risen from $21 a share in early July to close Friday at $38.76, gaining $0.51, or 1.33 percent.

Cameco (NYSE:CCJ) Confident in Long-term Price Support of Uranium

Uranium hasn't yet captured the attention of the average investor, and so travels under the radar as sexier investments like gold, silver and copper have been paying more immediate dividends for investors.

But that is slowly changing, as evidenced by Cameco's (NYSE:CCJ) announcement they're hiking their dividend again, this time by 43 percent, underscoring their confidence in the support of uranium prices based on long-term demand for nuclear power.

Over the last nine years Cameco has boosted their dividend seven times.

Cameco Chief Executive Jerry Grandey said, "The substantial increase in our annual dividend demonstrates our confidence in our business and in the long-term fundamentals of the uranium market."

Recently Grandey said he sees support for uranium prices in a range of $50 to $70 a pound over the long term.

Starting in the first quarter of 2011, Cameco will start paying a 40 Canadian cents a year for each share, paid on a quarterly basis. That's up from the prior dividend of 28 Canadian cents.

Cameco closed in New York Friday at $37.51, down by $0.18, or 0.48 percent.

Shaw Group (NYSE:SHAW) Lands Nuclear Deal with Toshiba

A number of interesting factors come with the news that Shaw Group (NYSE:SHAW) has landed a major contract with Toshiba Corporation to provide "engineering, procurement and construction services for new Toshiba Advanced Boiling Water Reactor (ABWR) nuclear power plants worldwide."

Canaccord said, "Shares of the other Shaw – the U.S. construction and Infrastructure development company – were up on news that the company and Japanese conglomerate Toshiba Corporation announced an expanded global strategic partnership in the nuclear power space. Under the agreement, Shaw will have certain exclusive opportunities for providing engineering, procurement and construction services for new Toshiba Advanced Boiling Water Reactor (ABWR) nuclear power plants worldwide, except Japan and Vietnam. Shaw immediately will assume the role of engineering, procurement and construction contractor for Nuclear Innovation North America's (NINA) South Texas Project Expansion, which will use ABWR technology for two new nuclear units, as a consortium team member with Toshiba America Nuclear Energy, a U.S.-based Toshiba subsidiary. Shaw will invest $250 million for an ABWR alliance with Toshiba, including a $100 million credit line available to a venture between Toshiba and NRG Energy (NYSE:NRG) that is expanding a nuclear plant in Texas. The credit facility will convert to equity in NINA upon the satisfaction of certain conditions including the project receiving full notice to proceed, which is expected in mid-2012.

This isn't considered a major game-changer for the nuclear and uranium markets, but it shows the scramble by companies to position themselves for the inevitable surge in demand for both.

Shaw's Chairman, President and CEO, J.M. Bernhard Jr., said, "Now with our agreement with Toshiba, Shaw is able to promote not only Westinghouse AP1000(TM), the world's first Generation III+ nuclear technology, but also ABWR, the world's most proven advanced nuclear technology, to our customers."

Shaw closed Tuesday at $32.05, falling $0.39, or 1.20 percent. For them this is a major deal for a long period of time.

Denison Mines (NYSE:DNN) Moving Up on Long Term Uranium Prices

The market has quickly changed for the outlook of uranium prices, as they had been dragged down by the low price of natural gas and uncertainty as to the future of nuclear, at least in the short term. Denison Mines (NYSE:DNN) and other uranium miners have continued to push up even in those circumstances, and have received more impetus lately as analysts and commentators focus again on uranium.

TD Newcrest upgraded Denison as a result of the expected long-term price increase in uranium.

They said, "We are increasing our target price our rating following our increased uranium price forecasts. And we have updated our valuation estimates to reflect yesterday’s preliminary resource estimate for the Wheeler River discovery, which was below our estimates and previous company guidance ranges."

Denison was trading at $2.72, up by $0.07, or 2.64 percent at 1:25 PM EST. TD Newcrest raised their price target on them from C$2 to C$3.

Cameco (NYSE:CCJ), USEC (NYSE:USU). Denison (AMEX:DNN), Grab Market's Attention

The nuclear story has been somewhat eclipsed and questioned over the last several months because of the emerging natural gas story and its implications for the industry, but new attention and reminder of China's growing nuclear demand has brought uranium suppliers Cameco (NYSE:CCJ), USEC (NYSE:USU). Denison (AMEX:DNN) into the limelight once again.

Cameco and USEC have attracted options traders, and Denison, along with Cameco, have been upgraded by RBC Capital on the renewed interest in the sector.

The reason nuclear has been overshadowed is there is now uncertainty with the understanding of the enormous supply of natural gas around the world, especially in the U.S., which has changed the energy picture tremendously.

Low-cost natural gas has already caused some nuclear projects to be put on hold, but it's doubtful if the majority of China's nuclear reactors won't continue or start to be built.

That mean uranium prices will continue to go up because Supply of uranium is tight, and China isn't the only country building out nuclear energy.

Even though generally overlooked, Denison and Cameco have still performed strongly since the middle of the summer, while USEC has been pretty much level.

Cameco closed Tuesday at $36.81, gaining $1.07, or 2.99 percent. Denison closed at $2.65, losing $0.15, or 5.36 percent, although they gained that back and more in after hours trading. USEC closed at $5.50, shooting up by $0.32, or 6.18 percent.

Denison Mines (AMEX:DNN) Downgraded by TD Newcrest

TD Newcrest lowered their rating on Denison Mines (AMEX:DNN) from "Hold" to "Reduce," "given the negative 22% return to our target price following a recent increase in the company’s share price."

Since July 6, when Denison was as low as $1.08, they've made a nice move upward, closing on Friday at $2.51, losing $0.05, or 1.95 percent.

Denison recently released their latest quarterly report, and they generated revenue of $39.9 million, losing $9.5 million, or $0.03 a share.

Denison is involved in all aspects of uranium, from exploration to milling, and has an ancillary product they produce in vanadium.

TD Newcrest maintains a price target on them of C$2.00.

AngloGold Ashanti (NYSE:AU) Expanding Existing South African Mines

In what appears to be a move to increase gold and uranium production at lower costs, AngloGold Ashanti (NYSE:AU) will reportedly work on expanding its existing mines in South Africa.

AngloGold is also investing in large projects in other places, making it important to attempt to tap into existing resources in hopes of keeping minimum annual gold production at about 1.75 million ounces over the next five years, according to executive vice president for South Africa, Robbie Lazare.

The company did say it'll be difficult to accomplish because of the major projects, which over the next decade or so will increase production for the giant gold miner.

Also benefiting in the short term will be its uranium assets, which AngloGold said will increase from 1.3 million pounds to 2 million pounds in annual production.

With demand for uranium ready to explode, that should be a solid benefit for the miner. About 1.4 million pounds of uranium is expected to be produced this year.