SOURCE: Paragon Financial Limited

Paragon Financial Limited

December 16, 2011 08:16 ET

Cameco and Uranium Resources Weighed Down by Stagnant Uranium Market

The Paragon Report Provides Equity Research on Cameco Corp & Uranium Resources

NEW YORK, NY--(Marketwire - Dec 16, 2011) - The uranium sector has faced considerable price uncertainty in the second half of 2011 as the aftermath of Japan's tragic nuclear crisis continues to drive the industry's outlook. As Resources Capital Research (RCR) said in its December quarter note uranium majors have significantly underperformed the broader share market over the past 12 months, largely due to set backs following Fukushima.The Paragon Report examines investing opportunities in the Uranium Industry and provides equity research on Cameco Corporation (NYSE: CCJ) (TSX: CCO) and Uranium Resources, Inc. (NASDAQ: URRE). Access to the full company reports can be found at:

As industry leader Cameco Corporation explains in its "Uranium 101" article, "demand for uranium is directly linked to the level of electricity generated by nuclear power plants. Reactor capacity is growing slowly, and at the same time the reactors are being run more productively, with higher capacity factors, and reactor power levels."

While a few countries -- Germany most notably -- abandoned nuclear programs in the aftermath of the crisis at Fukushima, the United States as well as emerging economies such as China continue to embrace nuclear energy. Earlier this week the Associated Press reported that Federal regulators are leaning towards approving a nuclear reactor designed by Westinghouse Electric Co. that could power the first nuclear plants built from scratch in a generation.

The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the Uranium Industry register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

Earlier this month Cameco suggested that some investors underestimate the potential for supply shortfalls to spur higher prices for the nuclear fuel. Bloomberg reports that Cameco Chief Executive Officer Tim Gitzel said disruptions in mine production, the difficulty faced by development companies in raising funds for new mining projects, and the end of a Russian deal to supply uranium from scrapped atomic warheads may help create a supply deficit.

Uranium Resources Inc. (URI) explores for, develops and mines uranium. Since its incorporation in 1977, URI has produced over 8 million pounds of uranium by in-situ recovery (ISR) methods in the state of Texas where the Company currently has ISR mining projects. Last month URI announced that Cameco Resources has elected to move forward with Phase II of the three phase exploratory program on the 54,847 acres in Kenedy County, Texas, known as the "Los Finados Project." Under Phase II of the agreement with URI, Cameco will fund $1.0 million toward those exploration activities and will earn an additional 10% interest in Los Finados, raising its interest in the project to 50%.

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