October 5, 2015, +$0.50 from survey one week ago):
Click to see Uranium Futures =>
Uranium/Nuclear focused ETFs:
Click to see
Global X Uranium ETF (URA) =>
related ETF style investment vehicles (focused on nuclear
energy but are not limited to uranium mining and are not direct
competition for URA):
Market Vectors Nuclear Energy (NLR),
and Barclays iShares Global Nuclear Energy (NUCL)
Although we often reference
the spot price of uranium, the long-term price is what
really counts as only a small fraction of the metal is
actually traded on spot prices; over six times more uranium
is traded in long-term market prices than in the spot market
price. The long term market price is consistently and
significantly higher than spot.
Long term price support comes from international competition
for the commodity as a result of escalating nuclear programs
in nations such as India and China. According to the World
Nuclear Association there are official plans in the works
worldwide (as of Q3 2013) for 546 new
reactors (either under construction, planned, or proposed).
On the uranium supply side,
global shortfall from the historic norm is expected in time as the Russian 'Megatons to Megawatts' program cames to an
end at the end of 2013. This agreement allowed for Russian
nuclear weapons highly enriched uranium (HEU) to be
converted to useable fuel for over 20 years. This represents
~24 million lbs of uranium coming off the market annually
(representing ~20% of current annual global commercial
Welcome to Uranium Miner
We track active uranium mining
interests worldwide & provide insight into uranium resource
companies that offer outstanding properties, management and
experience in the mining / exploration industry.
Sponsor Information /
Valuation Commentary: Discovery Ventures Inc.
Discovery Ventures acquires 100%-ownership of Max Mill for fraction
of replacement value, targets pouring first Gold bar in Q3-2016
Discovery Ventures Inc. (TSX-V:
DVN) (OTCQX: DTVMF) (Frankfurt: 0DV)
today announced securing 100% ownership of the Max Mill & Mine
located in the Revelstoke mining division of British Columbia,
Canada. Mining MarketWatch Journal has published an
overview of the opportunity afforded investors as DVN.V is aiming to
pour its first Gold dore bar before the end of the summer-2016. Ore
for the mill will be mined from its high-grade Willa Gold Project
located ~135 km south. By combining these two assets, the
Max Mill and the Willa deposit (collectively referred to as 'The WillaMAX Project'), together form a turnkey operation that positions
DVN.V to be cash flowing within 9 months following the receipt of
its initial 10,000 tonne bulk permit (expected to be received this
fall-2015). The best part is Discovery is acquiring 100%-ownership
of Max Mill for fraction of replacement value along with acquiring a
loss-carry-forward windfall on the books of ~$50 million, and is
fully financed through till its commencement of operations, at which
time it is expected to generate sustained cash flow pouring Gold.
The 2012-Preliminary Economic Assessment ('PEA') revealed robust
economics with cash costs of US$680/oz Gold, even lower with Cu & Ag
credits. An updated PEA is in the process of being commissioned.
DVN.V is expected to cash flow between $20M to $30M per year for the
first 4 years.
intrinsic value of the DVN.V relative to its current market
of ~$12 million (~80M shares outstanding X ~15 cents)
appears disproportionate and presents exceptional opportunity for
investors establishing a long position; shares of DVN.V are poised
for upside revaluation as the inherent value and accomplishments are
appreciated by the market, and apt to respond in multiples as gold
retrenches and strengthens. Contrast the current market cap to the
following list of known intrinsic assets a) the Max Mill by itself
has a replacement value of
~65+ million, b) the WilliMAX Gold Project is worth $54 million (as per PEA),
the moly resource under the MAX Mill is worth $40 million (as per PEA).
Mining MarketWatch Journal review of Discovery
Uranium News and Opinion:
----- ----- ----- ----- -----
Governments worldwide struggle for solutions to control
green house gas emissions and produce affordable energy;
nuclear power is the cleanest, least expensive and most
secure source of electricity. There are currently (as of Q3
operational nuclear reactors world wide and that number is
expected to grow significantly within the next decade.
May 12 Eureka
Nuclear technology uses the energy released by splitting the
atoms of certain elements. It was first developed in the 1940s,
and during the Second World War research initially focussed on
producing bombs by splitting the atoms of particular isotopes of
either uranium or plutonium.
In the 1950s attention turned to the peaceful purposes of
nuclear fission, notably for power generation. Today, the world
produces as much electricity from nuclear energy as it did from
all sources combined in 1960. Civil nuclear power can now boast
over 15,500 reactor years of experience and supplies almost
11.5% of global electricity needs, from reactors in 31
countries. In fact, through regional grids, many more than those
countries use nuclear-generated power.
Many countries have also built research reactors to provide a
source of neutron beams for scientific research and the
production of medical and industrial isotopes.
Today, only eight countries are known to have a nuclear weapons
capability. By contrast, 56 operate about 240 civil research
reactors, over one thrid of these in developing countries. Now
31 countries host over 430 commercial nuclear power reactors
with a total installed capacity of over 370,000 MWe (see linked table for
up to date figures). This is more than three times the total
generating capacity of France or Germany from all sources. About
70 further nuclear power reactors are under construction,
equivalent to 20% of existing capacity, while over 160 are
firmly planned, equivalent to half of present capacity.
Sixteen countries depend on nuclear power for at least a quarter
of their electricity. France gets around three quarters of its
power from nuclear energy, while Belgium, Czech Republic,
Hungary, Slovakia, Sweden, Switzerland, Slovenia and Ukraine get
one third or more. South Korea, Bulgaria and Finland normally
get more than 30% of their power from nuclear energy, while in
the USA, UK, Spain and Russia almost one fifth is from nuclear.
Japan is used to relying on nuclear power for more than one
quarter of its electricity and is expected to return to that
level. Among countries which do not host nuclear power plants,
Italy and Denmark get almost 10% of their power from nuclear.
In electricity demand, the need for low-cost continuous,
reliable supply can be distinguished from peak demand occurring
over few hours daily and able to command higher prices. Supply
needs to match demand instantly and reliably over time. There
are number of characteristics of nuclear power which make it
particularly valuable apart from its actual generation cost per
unit – MWh or kWh. Fuel is a low proportion of power cost,
giving power price stability, its fuel is on site (not depending
on continuous delivery), it is dispatchable on demand, it has
fairly quick ramp-up, it contributes to clean air and low-CO2
objectives, it gives good voltage support for grid stability.
These attributes are mostly not monetised in merchant markets,
but have great value which is increasingly recognised where
dependence on intermittent sources has grown.