Positive Headlines Lift Uranium Stocks (UEC, CCJ, BRK.A, URZ, URG, DNN, URRE, BRK.B)
Shares of Uranium Energy (UEC) are surging 4% after the uranium producer announced it will acquire privately held Concentric Energy Corp. for about $4 million in stock to gain access to the the Anderson Property, a 5,785-acre mineral claim block located in Yavapai County, Arizona. Under the terms of the deal, Concentric’s stockholders will receive 0.1075 of one share of UEC common stock for every one share of Concentric common stock.
The news is just one catalyst giving a boost to the downtrodden uranium sector today as the Uranium Stocks Index is up 3.1%. The Index has plunged more than 40% since the March earthquake that ravaged Japan led a nuclear fallout and a massive sell-off in uranium stocks.
Cameco (CCJ), the largest publicly traded North American uranium company, is also contributing to the gains in the uranium sector with a 1% pop of its own. Despite reporting first-quarter results that missed analysts’ estimates, Canada-based Cameco said it still expects to produce 21.9 million pounds of uranium this year and the company expects to sell 31-33 million pounds of the materials.
Adding that it expects sales to be heavily weighted toward the second half of the year, Cameco said that it has a strong outlook for uranium in the future and is sticking with a plan to boost annual production to 40 million pounds by 2018, according to Reuters.
Positive comments about nuclear from Bill Gates and Warren Bufett also appear to be helping uranium stocks today. The two are bullish on the industry’s fundamentals, according to the Globe and Mail. Buffett said at last weekend’s Berkshire Hathaway (BRK.A, BRK.B) shareholder meeting that “nuclear power is important for the world.”
Investors can track the Uranium Stocks Index for performance trends and a suite of other metrics at tickerspy.com.
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