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Mickey Fulp: Reactor Restarts, Uranium Price and Stock Picks
Aug. 10, 2015 02:15PM PSTEnergy Investing
Mercenary Geologist Mickey Fulp discusses the uranium market and lists his three favorite stocks.
Mercenary Geologist Mickey Fulp has spoken previously with the Investing News Network about the gold price, the problems with major gold miners and the state of the TSX Venture Exchange. However, most recently he stopped by to share his thoughts on the uranium market.
Fulp is bullish on uranium, and began by explaining that he believes the market hit bottom last summer when the price slipped to $28 per pound. “We’ve seen a very significant rise in prices. [It’s now] floating around $35 to $37,” he said. And while that “doesn’t really get anybody excited,” it’s probably about a 30-percent increase from last summer. “Equities for the most part have followed suit,” he added.
He also touched on Japanese reactor restarts, commenting that Kyushu Electric Power Company’s (TSE:9508) two reactors at the Sendai nuclear power plant might be back online by the end of the month, and if not, “by the end of this quarter.” That prediction has already proven timely — since the interview was conducted, news has surfaced that Kyushu will restart one unit at the Sendai nuclear power plant on August 11.
Of course, Japan is only part of the uranium demand story. Fulp emphasized that while reactor restarts there will be important in stoking uranium demand, other countries will also need more uranium moving forward. Those include big names like China, India and Russia, as well as less-discussed countries like Argentina, Turkey and Korea. “I think right now there’s something on the order of 61 reactors under construction, and about one per month going into criticality and start ups, so that’s a pretty bullish scenario,” he commented.
In closing, Fulp discussed how utilities contribute to uranium demand and outlined his predictions for the uranium price. He also mentioned a few of his favorite uranium stocks: producer Energy Fuels (TSX:EFR,NYSEMKT:UUUU), developer Uranium Resources (NASDAQ:URRE) and prospect generator CanAlaska Uranium (TSXV:CVV).
He said he is a “long-term committed shareholder” of Energy Fuels, and in terms of Uranium Resources is excited about the company’s impending acquisition of Anatolia Energy (ASX:AEK). That “will give them a very short-term path to production in Turkey,” he said. CanAlaska is his Athabasca Basin pick, though Fulp is also interested in the company’s joint venture just outside the basin with Northern Uranium (TSXV:UNO).
Watch the video above for more of Fulp’s thoughts and what he believes all three of his stock picks have in common.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Mickey Fulp’s Disclosure: Mickey Fulp owns shares of Energy Fuels, Uranium Resources and CanAlaska Uranium. All three are paying sponsors of his website, MercenaryGeologist.com.
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