Eventually Molten Salt Reactors Will Boost Uranium Miners: Cameco Corporation (USA) (CCJ), Denison Mines Corp (USA) (DNN)

With a 0.69% management fee, the fund is on the expensive side of the ETF realm. For investors that really understand the industry this ETF offers a good way to play the violent swings in investor sentiment. Long term energy investors looking to diversify their exposure to the world’s energy sources would probably find a better fit in Cameco Corporation (USA) (NYSE:CCJ) due it is already profitable operations and low cost structure.

Denison Mines Corp (USA) (NYSEMKT:DNN) is an up and coming nuclear miner. It is drilling in a number of areas next to Cameco’s facilities. Denison Mines Corp (USA) (NYSEMKT:DNN) also owns a 22.5% interest in the Mclean Lake mill that is currently the only mill designed to process the high grade ore found in the region. The company also has interests in Mongolia and Zambia. This diversified resource mix is slowly being developed and Denison Mines Corp (USA) (NYSEMKT:DNN) is setting itself up nicely to become an important player in the industry.

Denison Mines Corp (USA) (NYSEMKT:DNN) is not profitable and the process of bringing a new mine online is not quick or easy. The company is expected to post an EPS loss of -$0.06 in 2013 with continued exploration costs. Even with $38 million in cash and equivalents, the most prudent action is to hold off for the time being.

Conclusions

Molten salt reactors offer a great way to help remove nuclear waste and improve the image of the industry. Overall this will help to support the demand for nuclear power and low cost producers like Cameco Corporation (USA) (NYSE:CCJ) are in a great place to benefit. The Global X Uranium ETF and Denison Mines Corp (USA) (NYSEMKT:DNN) mines have a number of projects that are still waiting to come online and this makes these investments rather unstable. Long term energy investors looking for a slice of uranium would find a better match in Cameco Corporation (USA) (NYSE:CCJ).

The article Eventually Molten Salt Reactors Will Boost Uranium Miners originally appeared on Fool.com and is written by Joshua Bondy.

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