Uranium processor and would-be miner Denison Mines (NYSEMKT: DNN) could be one of the world's lowest-cost producers of this key nuclear fuel. However, there's still a lot of work to be done before its key mine project gets under way, and now there's another headwind to deal with. Here's some key facts investors need to know to decide if Denison Mines is a buy today.
Uranium prices nosedived after the Fukushima nuclear disaster in 2011. That meltdown, precipitated by an earthquake and tsunami, led Japan to shut all of its nuclear fleet and prompted other countries around the world to rethink their use of nuclear power. Subsequent low uranium prices, meanwhile, led to a material pullback in production across the uranium mining industry. It has been a brutal ride for miners, but the drop in production looks like it will set up the next rally, as industry watchers believe there will be a shortfall of uranium over the next couple of decades unless new supply comes to market.
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Source Fool.com