In terms of assets, Uranium Energy currently has 4.1 million pounds in physical uranium portfolio. Further, resources at Wyoming are estimated at 42 million pounds. With BHP, investors are dealing with a known entity with a generally predictable business.
- Nuclear energy certainly appears to be the near future, with more countries turning to nuclear as a source of fuel.
- In Lost Creek alone the company possesses 1,800 unpatented mining claims with 3 mineral leases in Wyoming.
- The trust purchased more than 24 million pounds U3O8 in 2021, or about 25% of all spot purchases.
- According to a Pew Research Center report, a growing share of Americans favor more nuclear power.
- Its main operation is the Lost Creek uranium facility in Wyoming.
Analysts at Haywood Securities recently listed three they have on their radar right now. Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modelling. As an overview, Denison Mines is involved in uranium exploration and development in Canada. Uranium is primarily used as fuel to power the nuclear fission plants that produce about 10% of the world’s electricity. It represents an emissions-free alternative to fossil fuels while also being more reliable than renewable energy sources such as wind and solar.
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The company’s headquarters are in Toronto, but the majority of its assets are in Saskatchewan. With the uranium sector bouncing back, expanding its operations into this new sphere could really benefit the company. The company is one of the leading uranium producers in the U.S., running the only conventional uranium mill in Utah. During the global pandemic, the government launched a program to support U.S. uranium companies.
The uranium industry is receiving a boost from the growing push to decarbonize the global economy, and because of this, investors may be wondering which uranium stocks to watch. From November 2021 highs of $2.14, the penny stock has corrected to current levels of $1.20. A report from World Nuclear Association indicates a 2.6% growth in nuclear fuel demand. As the demand for nuclear power increases, Cameco is likely to benefit. Uranium is a non-renewable resource that is mined in many countries. Kazakhstan, Canada and Australia are the major producers of uranium, while the United States is the biggest user of it.
With several exploration and production projects on the cards, higher uranium price will boost cash flow for companies. So far this year, Uranium Energy hasn’t produced uranium but is instead buying yellowcake from the spot market in a bid to sell it later to make some money off rising uranium prices. Now that’s a move based purely on speculation about spot uranium prices, and not the kind of business strategy I’d put my money on. Uranium is a chemical element with symbol U and atomic number 92.
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It was established in 1997 and was formerly known as the Uranium Corporation until it changed its name in 2006. Their most well-known uranium mines are in Blind River and Elliot Lake but they have recently expanded to other areas as well. For investors who want exposure to the uranium market, but crave the diversity of a basket of equities instead of single stocks, exchange-traded funds (ETFs) are generally the way to go. The selection of uranium-focused ETFs isn’t very wide, but luckily for investors the options are growing.
- Prices for uranium fell sharply after the 2011 accident at Japan’s Fukushima nuclear power facility.
- Mention nuclear energy as a viable investment category and chances are, you’ll eventually encounter some hesitation from your audience.
- On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article.
- Unfortunately, no other power source features the energy density of nuclear facilities.
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No one knows when these stocks will start climbing again, so adding them to your portfolio in the near future can maximize your chance of lucrative returns. Even when the price of uranium drops, this demand should help uranium companies stay afloat. As we work towards climate-friendly energy solutions, many people have touted nuclear power plants as a good way to reduce our carbon emissions.
There’s been a lot of negative press, and that’s likely led to fewer people investing in uranium stocks. The World Nuclear Association, in its first market report since 2021, said Thursday that there are 391 gigawatts of nuclear power capacity globally, meeting a tenth of the world’s power demand. It forecasts that capacity will rise will rise to 686 gigawatts, and perhaps as high as 931 gigawatts, by 2040. Uranium Energy believes that uranium demand will grow at a compound annual growth rate (CAGR) of 3.1% through 2040. As an example, China is planning 150 new nuclear reactors in the next 15 years.
There is a level of experience that comes with more than 120 years of existence that other companies can hardly replicate. The shutdown of a major energy pipeline to deter Russia… limited production capacity by OPEC… and Biden’s determination to rely on alternative energy in 2022 are adding up to one thing. And the pie itself is growing as energy consumption increases globally. Nuclear energy makes up about 70% of total energy production in France. In recent years in the U.S., it’s made up as much as 20% of the total energy produced. It acquired this asset in 2013 and has gone through a wide range of applications and assessments.
Its density is about 70% higher than that of lead, and slightly lower than that of gold or tungsten. The half-life of uranium-238 is about 4.47 billion years and that of uranium-235 is 704 million years, making them useful in dating the age of the Earth. Many contemporary uses of uranium exploit its unique nuclear properties. Uranium-235 is the only naturally occurring fissile isotope, which makes it widely used in nuclear power plants and nuclear weapons. However, because of the tiny amounts found in nature, uranium needs to undergo enrichment so that enough uranium-235 is present.
Assuming UPC tracks the price of uranium closely, UPC will at least double as the price of uranium appreciates from USD 25 to 50. Based on supply and demand relations, this should happen within three years. Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups.
With the promise of a regular paying dividend that increases from time to time, investors have treated the stocks of this company as great options for dividend growth investment. There are currently 12 hedge funds investing in the company with Citadel Investment Group as the largest shareholder among them with $2 million. Recently though, developing nations are looking for power sources that can keep up with the rapid expansion of their industries.
Energy Fuels Inc. (NYSE:UUUU)
As of mid-2022, uranium prices were up 20.05 percent since the start of the year, firmly above the US$50 mark, and many experts are calling for an even brighter future. With interest in several strategic difference between horizontal and vertical line assets, the company has exploration potential over an area of 280,000 hectares. The company believes that it’s positioned to be among the lowest cost producers of uranium in the region.
As well, its free cash flow “growth” during the same period also sits in negative territory. Unfortunately, Denison’s trailing-year profit margins failed to find an exemption from the red ink. Uranium is a naturally occurring element with an average concentration of 2.8 parts per million in the Earth’s crust.
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Investors feel bullish about the uranium market following a slip in the spring of this year. The uranium company generates $450 tons of uranium per year and has weathered some recent lows better than other providers. There are a few great options for beginners and experienced traders alike to shop for stocks. Although based out of Spain, operations extend to nearly every corner of the Earth.
Uranium stocks are just waiting to trend upward again, so now is an excellent time to add them to your portfolio. After several months of sustained growth, the uranium sector is finding itself in a bit of a lull. This pure-play company invests in mines that need capital to begin mining or expand an existing setup. Share prices staying quiet despite an increase in revenue from the second quarter of this year.
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Robert Oppenheimer starting in 1934 led to its use as a fuel in the nuclear power industry and in Little Boy, the first nuclear weapon used in war. An ensuing arms race during the Cold War between the United States and the Soviet Union produced tens of thousands of nuclear weapons that used uranium metal and uranium-derived plutonium-239. The security of those weapons and their fissile material following the breakup of the Soviet Union in 1991 is an ongoing concern for public health and safety. Since it’s currently hovering in the low double digits at around $52 at the time of writing, I think CCJ stock has the considerable upside to appreciate rapidly. This is especially true as 30 countries worldwide embrace the energy source and restart or begin to build reactors. The company is heavily invested in uranium exploration, both through its operations and investments in various projects across Australia and Canada.
It is a silvery-grey metal in the actinide series of the periodic table. A uranium atom has 92 protons and 92 electrons, of which 6 are valence electrons. Uranium is weakly radioactive because all isotopes of uranium are unstable, with half-lives varying between 159,200 years and 4.5 billion years. The most common isotopes in natural uranium are uranium-238 (which has 146 neutrons and accounts for over 99%) and uranium-235 (which has 143 neutrons). Uranium has the highest atomic weight of the primordially occurring elements.