Struggling Shares of Denison Mines and USEC Look for Near Term Catalyst
December 16 2011 - 8:16AM
Marketwired
The uranium sector has faced considerable price uncertainty in the
second half of 2011 as the aftermath of Japan's tragic nuclear
crisis continues to drive the industry's outlook. As Resources
Capital Research (RCR) said in its December quarter note uranium
majors have significantly underperformed the broader share market
over the past 12 months, largely due to set backs following
Fukushima.The Paragon Report examines investing opportunities in
the Uranium Industry and provides equity research on Denison Mines
Corporation (NYSE Amex: DNN) (TSX: DML) and USEC Inc. (NYSE: USU).
Access to the full company reports can be found at:
www.paragonreport.com/DNN
www.paragonreport.com/USU
As industry leader Cameco Corporation explains in its "Uranium
101" article, "demand for uranium is directly linked to the level
of electricity generated by nuclear power plants. Reactor capacity
is growing slowly, and at the same time the reactors are being run
more productively, with higher capacity factors, and reactor power
levels."
While a few countries -- Germany most notably -- abandoned
nuclear programs in the aftermath of the crisis at Fukushima, the
United States as well as emerging economies such as China continue
to embrace nuclear energy. Earlier this week the Associated Press
reported that Federal regulators are leaning towards approving a
nuclear reactor designed by Westinghouse Electric Co. that could
power the first nuclear plants built from scratch in a
generation.
The Paragon Report provides investors with an excellent first
step in their due diligence by providing daily trading ideas, and
consolidating the public information available on them. For more
investment research on the Uranium Industry register with us free
at www.paragonreport.com and get exclusive access to our numerous
stock reports and industry newsletters.
Denison Mines Corp. engages in the exploration, development,
mining, and milling of uranium primarily in the United States and
Canada. It also produces vanadium as a co-product from its mines
located in Colorado and Utah. Last month the company announced the
successful completion of Phase 2 of the two-phased 2011 drilling
program on its 100% owned Mutanga uranium project in Zambia. Based
on internal estimates, Denison believes that the results from the
2011 drill program could potentially lead to an increase in
Denison's mineral resource estimates on the Mutanga project by 16
to 24 million pounds U3O8.
USEC Inc., together with its subsidiaries, supplies low enriched
uranium (LEU) to commercial nuclear power plants in the United
States and internationally. The company reported a net loss of $6.9
million or 6 cents per share for the quarter ended September 30,
2011, compared to net income of $1.0 million or 1 cent per share
for the third quarter of 2010.
The Paragon Report has not been compensated by any of the
above-mentioned publicly traded companies. Paragon Report is
compensated by other third party organizations for advertising
services. We act as an independent research portal and are aware
that all investment entails inherent risks. Please view the full
disclaimer at http://www.paragonreport.com/disclaimer
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