Rio Tinto: The No. 1 Mining Stock To Own Now
Much of the news headlines related to nuclear energy are concerned with either Iran or North Korea, and how these two countries are playing dirty games with the rest of the world in order to achieve their ulterior, and predictably evil, motives. That should not divert our attention from the fact that nuclear energy is clean, green and cheap when compared with conventional sources of energy. Countries like Japan, India, Norway and even the U.S. depend on nuclear energy sourced from enriched uranium for generating power and also for medicinal purposes.
With that in mind, it is important to understand that uranium is extremely important in an era when oil and gas prices are skyrocketing and Middle Eastern tensions continue. Rio Tinto (RIO) is one of the largest producers of uranium, and its facility in Namibia has been doing well for the last few years. However, Rio reported that its uranium output declined by almost 41% to 2,148 metric tons. It not only missed the target, but also sent shock waves through the stock market.
The Rossing mine has quite a lot of uranium left, but it may see a gradual decrease in the amount of uranium that will be unearthed in the future. Rio Tinto also mentioned that excessive rainfall, low grade uranium, maintenance shutdowns, and industrial strikes wreaked havoc on its uranium industry in Namibia. In fact, Rio Tinto revealed that the Rossing mine faced a loss of $57 million but was confident that it would make a profit in 2014.To continue reading, click here.