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A Uranium Miner with Strong Potential As the world population continues to grow, its impact on  the   global   environment   increases   as   well.   Many   of   the  world’s leading  energy users, like China,  are starting to  shift   away   from   coal.   Many   reports   indicate   China   will  ramp up nuclear facility production over the next decade,  a   bullish   indication   for  uranium   investing.   As   uranium  investing   through   the   commodity   can   be   difficult,   the  easiest method is through mining stocks. Nations such as China and India need massive amounts of energy over the next  decade. Only through nuclear power and, ultimately, uranium investing can they  keep up with their growing needs. While they do use traditional fossil fuels like coal,  the amount of pollution in some parts of these countries is extremely large. Not to  mention   nuclear   energy   is   more   efficient   than   coal.   Emerging   markets   have  extensive plans to grow their nuclear facilities and uranium investing and  mining  stocks should benefit. One of the more interesting mining stocks for uranium investing is Ur­Energy Inc.  (AMEX/URG, TSX/URE). This is one of a few junior uranium mining stocks with  tremendous potential as exploration and development firms. When looking at junior  exploration   mining   stocks,   there   are   always   risks   to   the   project   development  schedule.   Ur­Energy   is   currently   working   on   completing   its   needed   permits   for  bringing   the   Lost   Creek   mine   into   production.   The   company   expects   to   build   a  processing facility that can handle two million pounds per year. Ur­Energy recently announced that it has received the Final Environmental Impact  Statement   from   the   Bureau   of   Land   Management   with   the   statement   that   the  Drying   Yellowcake   On­Site   Alternative   is   the   bureau’s   recommendation.   This  statement will go into the record of decision, which should be released shortly. All   mining   stocks   need   proper   environment   assessments   and   approvals.   Uranium  investing can be risky, and all government regulations must be strictly adhered to.  Over the next month, the company will be reviewing the logistics and timetable for  the construction of the project. The company believes that it will take six to nine  months to construct these facilities, with production commencing in the first half of  2013.


Chart courtesy of www.StockCharts.com Mining stocks in general have been hit with high levels of volatility this past year.  Uranium investing through junior mining stocks can be fraught with danger, but it  also   offers   large   upside   potential.   Since   the   time   lags   between   exploration,  development, and production, uranium investing is best viewed from  a long­term  perspective. One good piece of news is that the stock has breached and held its 200­ day   moving   average   (MA).   While   the   Relative   Strength   Index   (RSI)   has   become  slightly overbought during the recent run­up, the move is now being consolidated on  a higher plane. If construction plans go as scheduled, this stock could see significant  upside potential over the next year. Of course, any problems with this process could  cause the stock to sell off, a possibility for those interested in uranium investing  through mining stocks to consider. While I wouldn’t jump to invest in this name right now, I would keep my eye on  mining stocks when looking at uranium investing. Mining stocks in this sector are  going   to   get   more  attention   over   the  next   few   years.   Certainly,   the   world   is   not  shrinking   from   energy   use.   We  know   of   many   new   nuclear   facilities   being   built,  which will cause the demand side to go up, a bullish sign for uranium investing.  While one must be careful when looking at mining stocks, I do think one should keep 


an eye on this sector, as uranium investing has tremendous potential over the next  decade.

A Uranium Miner With strong Potential  

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