The uranium industry has been facing difficulties since Japan’s nuclear crisis.
Investors have taken a serious hit since the disasterous aftermath at the Fukushima Dai-Ichi nuclear power plant.
But the industry expects to overcome the difficulties and successfully continue projects in the works.
Analysts say shareholders have no reason to panic because, amid the uncertainty surrounding nuclear power, uranium investment will shift positively again.
Although small explorers may experience delays and struggle to find investors, large explorations will move forward as planned due to their developmental importance.
Big time investors recognize the importance of developing uranium deposits and will not allow these projects to altogether flounder.
A successful bid by China Guangdong Nuclear Power to major uranium explorer Extract Resources Ltd is evidence of what will come in the uranium sector. The company announced it has “identified several possible strategic contracting opportunities.”
Some analysts expect uranium demand to outstrip supply by next year. They believe the uranium industry will survive the negative wrap from the Japan crisis and come out on top.
Don’t turn your back on uranium just yet.
Until next time,