2021 is shaping up to be a big year for uranium as global demand continues to rise with trends pointing toward greater energy consumption and lower carbon solutions…
These Companies Are Ready for the Next Uranium Surge … Are You?
A decade since the Fukushima disaster and the spot price for U3O8 moved above $30 per pound for the first time this year, a rebound from an 11-month low of $27.60 nearly a month ago. Producers and mine developers are collecting inventories aboveground and reactor construction continues for several others. Major uranium companies (Such as Kazakhstan’s JSC National Atomic Company Kazatomprom and Toronto-based Denison Mines Corp (TSX: TDML)) recently announced plans to make purchases of this nuclear fuel.
Uranium prices have yet to reach their values from early 2020 … but that could mean opportunity awaits for investors. There are several producers and explorers out there who have seen their share price growth over the past year.
One of the other biggest names in the uranium space is Cameco Corp. (TSX: CCO), which holds a 69.8-percent stake in its flagship McArthur River mine in Saskatchewan. In 2019, CCO produced 9 million pounds of uranium, and (when operating at normal production), the mine accounts for roughly 50% of output.
McArthur is located in the Athabasca Basin, which is best known as the world’s leading source of high-grade uranium and currently supplies about 20% of the world’s uranium. It is a region in the Canadian Shield that encompasses northern Saskatchewan to Alberta across its 100,000 km2 area. The company also operates the Key Lake mill nearby.
- Gains so far this year: 27.16%
- Gains over the past year: 90.34%
- Current share price: $21.68
Cameco operates mines in three countries and accounts for roughly 9% of the world’s uranium production. It owns the Smith Ranch-Highland operation in Wyoming’s Powder River Basin, as well as the Crow Butte operation in Nebraska, and Cigar Lake, which is one of the top prolific uranium mines in the world, along with a mine in Kazakhstan.
Another company working in the Athabasca basin is Vancouver, BC-based IsoEnergy Ltd. (TSX-V: ISO). ISO is engaged in the acquisition, exploration, and evaluation of uranium properties in Canada, and its project portfolio includes Thorburn Lake, Radio, Geiger, and others.
The company gathered a lot of investor attention recently when its team discovered the high-grade Hurricane zone of uranium mineralization on its 100% owned Larocque East property in the Eastern Athabasca Basin.
- Gains so far this year: 41.71%
- Gains over the past year: 432.00%
- Current share price: $2.51 (CAD)
As its drill results continue to come out with positive numbers, its stock has seen a positive upward trend over the course of the year. Having just closed some financing, the company just wrapped up a total of 10,000 meters of core drilling at the Hurricane project with results expected to come out soon.
Uranium developer enCore Energy Corp. (TSX-V: EU) has been keeping its focus locked on leading the field through in-situ recovery (ISR, where minerals such as uranium are claimed through boreholes drilled into a deposit, in situ, artificially dissolving minerals that occur naturally in a solid-state).
- Gains so far this year: 21.28%
- Gains over the past year: 776.92%
- Current share price: $1.13 (CAD)
EU recently acquired two production facilities in Texas to capitalize on the changing global uranium supply and demand outlook, along with the inherent opportunities for industry consolidation. The company also holds uranium resources in New Mexico (the Marquez project), as well as Utah and Wyoming. In the past 12 months, EnCore Energy has seen a steady upward push in its stock price, having completed a private placement of 15 million units, where gross proceeds totalled $15 million (CAD).
Uranium has proven to be a busy sector with plenty of activity, given the number of companies that continue to expand their drill efforts and raise capital. Investors looking for a new and intriguing opportunity that is already on the move, with much room to grow, should deepen further due diligence into this market.
FULL DISCLOSURE: Azincourt Energy Corp. is a client of Stockhouse Publishing.
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