Thorium & Renewable Energy vs Uranium

As the world impatiently watches whether Japan’s Nuclear power facilities cause a catastrophic event, the debate over the use of Uranium for energy and safe alternative fuels has again risen.

Since the implementation of Nuclear energy in the 1950’s. The global debate for the use of uranium has led to many protests for and against.

Additionally, The production and use of natural resources such as coal. And crude oil has created a massive impact on global warming. And also, with diminishing supply levels. Also, alternative fuels are needed now more than ever.

As well, Japan’s current problem with the potential for radiation leaks. Also, close as 80kms out of Tokyo is estimated. As being the 3^rd worst nuclear disaster to date. Furthermore, Topping the list is Chernobyl in the Ukraine (formerly of USSR) in April 1986. And then Three Mile Island in Pennsylvania (United States) in March 1979.

This has led us to investigate alternatives. To uranium and renewable energy sources.

Furthermore, Thorium is a natural element that is an effective replacement for highly volatile uranium. And plutonium is currently used in nuclear power plants. Where the situations we are currently experiencing in Japan are derived from the use of uranium. Thorium would alleviate these problems as there is no possibility of a meltdown. It requires 0.5% as much as uranium. And it does not produce weapons grade by products.

In Addition, Compared to uranium. There is more availability of thorium around the world. And just like uranium. The greatest quantities of thorium are found in Australia. It is estimated that over 400,000 tonnes of thorium could be extracted from within Australia.

Hence, As defined by Geoscience Australia (Australian Government). It is estimated that the cost of extracting. And producing thorium is less than $US80 per kilogram.

Moreover, As the price of uranium has increased. And is trading around $US66.50 per pound, today. This makes thorium even more attractive as an alternative.

This debate is likely to be ongoing. But this could lead to opportunities in an emerging market. As outlined by Geoscience Australia. There is currently no production of thorium in Australia.

But as it is present in the mineral monazite. Australia was involved in the exporting of this mineral up until 1995.

Key deposits of Thorium in Australia are found in the following locations:

• Nolans Bore – 135km northwest of Alice Springs, NT.
• Toongi – 30km south of Dubbo, NSW
• Brockman – 1060km north of Perth, WA
• Mount Weld – 30km south of Laverton, WA
• Cummins Range – 130km southeast of Halls Creek, WA

The key companies that are most likely to pick up. Thorium production in these regions include:

 

 

Then, The fundamentals for most of these companies we have deemed as Weak. This category reflects poor Revenue generation. And decreasing profit/earnings. Over the last three to four years. It is prudent to note, however, that many of the above listed companies are low capitalized stocks. Their available capital resources are utilized in the exploration of resources.

These companies are considered speculative stocks. Due to their low revenue income. And will spike upwards when they announce. The discovery of deposits as it denotes future revenue income.

Alkane (ALK), on the other hand. Has Good fundamental data. And from a technical perspective. And has been trending steadily over the medium to long-term. ALK currently offers a good entry point. As the stock price has retraced from recent long-term highs.

For the renewable energy sector. t

There are 4 key categories:

1)    Solar

2)    Oceanic

3)    Geothermal, and

4)    Biomass

The renewable energy companies listed. In Australia are
mostly speculative companies. However, Origin Energy (ORG) is involved in renewable energy. As well as other traditional energy sources. Such as gas and oil exploration. The key companies listed in Australia include:

Company	Code	Market Cap$
Origin Energy	ORG	$13.86B
Ceramic Fuel Cells Ltd	CFU	$144.16M
Dyesol Ltd	DYE	$79.54M
Solco Ltd	SOO	$19.71M
EnviroMission Ltd	EVM	$682.33M
BP subsidiary – BP Solar	Listed in US	$US141.11B
Pacific Hydro – owned by Industry Funds Services Pty Ltd	Private company	–

 

In conclusion, investment directly into the Renewable Energy sector of Australia. Would be speculative as the demand for these products. Despite the sentimental desire to reduce global warming. Has not yet transferred into the investment arena.

Opportunities will exist for Thorium producing companies. On the development of this natural mineral as a replacement for uranium. As Japan attempts to control 2 of their nuclear power plants. And the following unpredictable natural disasters. The world will focus on how energy will be produced in a safe manner. That will not leave us with toxic end products.

ALK offers the investor opportunity for medium to long-term. The investment for exposure in Thorium. The short-term trader could. Also, monitor this position for a Bullish trade opportunity.