FNArena <[email protected]>
To:[email protected]
7 Jun at 10:55 AM
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This is paid for advertising.You are receiving this email because your address is registered at FNArena (see www.fnarena.com)
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This emission-free energy is already powering 1 in 5 American homes and 11% of the worldLike many market analysts, we are bewildered by the uranium price and wonder if this may be the bottom of the cycle. Fundamentally, there are so many things going in uranium's favour.
Uranium and nuclear power plants tend to have a bad name in Australia based on fear, not facts, despite this clean, cheap and sustainable power supply providing 11% of the world's electricity. Its use looks set to continue to grow with the move away from more expensive, dangerous to produce and environmentally damaging fossil fuels.
We, like many, are of the opinion that with the growing thirst for energy on our current infrastructure there is a global need to transition to cost-effective and low-emission economies using the widest range of technologies available.
If we are to believe that the electric car will replace the combustion engine then we will need electricity to power them, as well as other breakthrough innovations that we are yet to see. Hopefully with emission-free electricity such as solar and nuclear we have a sustainable way to meet this ever increasing demand, and power us into the future.
However the appetite for nuclear isn't there yet in Australia, although it may be one day as the cost of electricity spirals.
This may come from the many Australians that can't afford to turn their lights on, power their fridges, air-con or heating.
Recently we compiled a comprehensive research report on the uranium industry and it highlighted some exciting opportunities, click here to download the report.
The consensus amongst our analysts, and many industry experts, is that something has to give with uranium's price.
Uranium prices fell in 2011 post Fukushima when the Japanese turned the lights out on 48 nuclear reactors. This triggered the downward trend on uranium.
And yet, the Japanese have already reopened eight reactors and are looking at reopening several more.
Why? They need to return to a clean, cheap and sustainable supply that uranium provides.
With so many fundamental factors supporting uranium, the famous Warren Buffett quote comes to mind, 'be fearful when others are greedy and greedy when others are fearful'.
Fear has driven many uranium companies out of the market but one that has remained strong is Toro Energy (ASX: TOE) which is perfectly positioned, and permitted to mine 62 million pounds of uranium (JORC) in Western Australia.
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Now there are already 450 reactors operating, and on top of this there are an additional 60 currently being built, a further 158 reactors planned, with an additional 351 proposed. With the Asian market the fastest growing in terms of reactor numbers, Australia will be able to sell one of its most valuable commodity assets on its doorstep.
Whilst this is happening stockpiles are being run down and supply is being cut.
So, what does this combination of an unsustainable suppression of prices, consequently depressed stock prices, growing global demand for uranium, and Australia's unique capacity to fulfil that demand mean for investors? Well, it means there are a number of opportunities to invest in potentially significantly undervalued companies.
Toro Energy (ASX:TOE) have been working hard to reduce future production costs and recently announced a potentially substantial gold asset. Uranium explorer/developer companies like Toro have sold off with the uranium prices and this could represent a significant opportunity if you are a believer in the long term prospect for uranium.
Click below to access detailed research on uranium or Toro, don't forget to add 'TOE' to your ASX watchlist.
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[/table]Warm regards,The Team at OzFinancial*OzFinancial Australia are currently assisting TOE with the management of an investor Share Purchase Plan and may receive fees depending on whether the offer is taken up by investors.[/table][/table][/table][/table]
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The original sender of this email is OzFinancial Australia Pty Ltd, ABN 36 145 312 232 which is a Corporate Authorised Representative of OzFinancial Pty Ltd, ABN 85 106 823 741 AFSL Number 241041, Level 7, 85 Queen Street, Melbourne 3000. For more information please call us on 03 8080 5795 or visit our website at www.ozfinancial.com.au
This email and any attachments are confidential. The contents can only be used by the intended recipient. It can be corrupted in transmission, and the onus is on the recipient to check for and remove viruses. This statement should not be removed, and should be filed along with any printed record of the email. If you are not the intended recipient, confidentiality is not waived, and you must immediately tell us by email or telephone +61 3 8080 5795 and delete it permanently from your computer. The original sender retains copyright in the contents and attachments, and any unauthorised use may result in legal action. The content is based on information obtained from sources believed to be reliable but no independent verification has been made, nor is its accuracy guaranteed. Except to the extent required by law, OzFinancial Australia Pty Ltd nor any of its employees agents or contractors makes any representation as to the accuracy or fitness for purpose of the information in this statement.
Any advice contained in this communication is general only and does not consider your objectives, financial situation or needs, and you should consider whether it's appropriate for you. This might mean that you seek personal advice from a representative authorised to provide personal advice. If you are thinking about acquiring a financial product, you should consider our Financial Services Guide (FSG) including the Privacy Statement at www.ozfinancial.com.au and the relevant Product Disclosure Statement or Prospectus (if there is one available) first. Trading options is not suitable for everyone. There is a risk that you can lose more than the value of a trade or its underlying assets. You should only act on our recommendations if you are confident that you fully understand what you are doing. Past returns do not reflect future returns, and it is also possible to make significant losses. We employ expert traders and use strategies that maximise returns and minimise risk. However, there is always a risk of loss when trading and investing.
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[/table][/table]The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.© FNArena 2018. All Rights Reserved. No portion of this email may be reproduced, copied or in any way re-used without written permission. All subscribers should read our terms and conditions.[/table][/table]
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