Boston, MA 03\/05\/2014 (wallstreetpr) –\u00a0Ur-Energy Inc. (USA) (NYSEMKT:URG)<\/b> is busy ramping up production while other large manufacturers in the sector are cutting down. Time alone can tell if the company has taken a right decision.<\/p>\n
The Uranium prices and demand:<\/b><\/p>\n
The tsunami in Japan in 2011 crippled more than one nuclear plant. Though only one plant was stuck by the waves and had to shut down when the reactors melted, Japan ordered closure of all nuclear plants for safety audits. This sent the uranium prices crashing down to nearly eight year lows as Japan is a major importer of Uranium. The country got 30% of its power from nuclear sources. It was also feared that the issues in Japan could lead to a backlash in other countries as citizens would oppose nuclear plants in their back yards. These lead many uranium miners to scale back their production and to defer projects.<\/p>\n
However, Ur-Energy Inc. (USA) (NYSEMKT:URG) has taken a different view of the situation. The cut in production has reduced the potential output by almost 16% of the global output for last year, reducing supplies by 20 million to 25 million lbs. Most of the contracts with utility companies are at higher prices as these contracts are long term and were entered into when the prices were on a higher side. Continuing the supplies would yield a higher price realization to the company.<\/p>\n
Strong demand potential<\/b><\/p>\n
Secondly, the Japanese accident has not impacted nuclear power plants, in fact over 70 reactors are under construction all across the world. The number of reactors is expected to increase by 93 in the next 10 years, including those under construction. A report also suggests that there are 433 operating nuclear reactors worldwide.<\/p>\n
Even Japan seems to be reconsidering its decision. The country has unveiled a draft energy plan which includes nuclear power. This indicates that Japan has not ruled out reopening of the other undamaged reactors spread across the country.<\/p>\n
With these positives on its side, Ur-Energy Inc. (USA) (NYSEMKT:URG) seems to be moving in the right direction.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 03\/05\/2014 (wallstreetpr) –\u00a0Ur-Energy Inc. (USA) (NYSEMKT:URG) is busy ramping up production while other large manufacturers in the sector are cutting down. Time alone […]<\/p>\n","protected":false},"author":32,"featured_media":16527,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[4862,4861],"stock_ticker":[],"class_list":["post-16526","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-nysemkturg","tag-ur-energy-inc-usa-nysemkturg","entry"],"acf":[],"yoast_head":"\n