Trump will be our 45th president partly due to his success in the Rust Belt. He was successful in the region because he promised to bring back jobs and refire coal power plants and nuclear power plants. In 2011, Trump stated, post Fukushima Disaster, "I'm in favor of nuclear energy, very strongly in favor of nuclear energy. If a plane goes down, people keep flying. If you get into an auto crash, people keep driving." Of course, that was quite a few years ago and Trump has yet to formulate an energy policy, but memory of the disaster that put a dark cloud over nuclear power is starting to fade. In addition, the Iranian Nuclear Deal brings uranium and nuclear power back into play as countries in the surrounding Middle East areas look to buy up uranium resources either to block Iran or bolster its own storehouses. All these things working together could lead to a resurgence in the uranium market, and here is one company we are watching: GoviEx Uranium (TSX.V: GXU).
GoviEx is focused on exploring uranium projects in Africa; such as: Mali, Niger, Namibia and Zambia. The company is funded by extremely strong players in the industry: Ivanhoe Industries, Toshiba Corporation, Denison Mines and Cameco (arguably the largest uranium player in the market).
(images taken from corporate presentation)
Headquartered in Vancouver, GXU, along with its subsidiaries,
is dedicated to exploring and evaluating, and developing uranium
mineral properties. Formerly known as Govi High Power Exploration until
its name change in 2008, the company’s lead project, the Madaouela
project, contains five mineral tenements.
The company will be moving closer and closer to an efficient project pipeline possible in time with the world’s increased uranium demand. China will grow from 21 reactors in 2014 to 132 reactors by 2030. India and Africa are continually building reactors to keep up with European nations. Uranium could potentially be a green energy solution with its low green house gas count and low ozone depletion rate.
Currently, there are 69 reactors in progress worldwide. Japan is also starting to restart reactor programs understanding that nuclear power can complement existing green energy options. Global utility storage of uranium is at high average right now, but enriching mined uranium and turning it into fuel rods can take 2-3 years. Many believe the time is now for the price to rise as demand increases as reactors start up in places in new areas. GXU represents a team and an operation that could be in the thick of those developments.
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