Movers and SHAKERS
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Overview of Uranium Stocks Within Three Industry Segments
The fundamentals surrounding uranium prices seem to add up to be a perfect storm in favor of the once-out-of-favor commodity. On the supply side, production is off because of mine closures, meanwhile, demand is rising as the move toward zero CO2 emissions power generation is getting stronger - and government support is stronger than ever.
But, uranium is not your typical commodity. Prices are generally a direct negotiation between utilities and producers, and direct investment presents storage expenses. Traditionally, investors look toward companies involved in mining uranium to diversify the energy component of their portfolio. As with other natural resources that are pulled from the Earth, there are companies involved in the various stages of mining. These include companies solely involved in Exploration, Development, or Producing.
Exploration companies are active in exploring properties that they either own or have obtained rights to explore. Producers are involved in actual mining; they take the mineral from the ground. Developers take the raw product and make it ready for consumption, in the case of uranium they create something called yellowcake. There is overlap within the industry as some companies are vertically integrated.
All three of these types usually benefit when the price of U3O8 rises. The greater risk/reward for investors is often found on the exploration side and the lowest risk/return is more often found among production companies. Of course, as with any comparison, many factors are involved to determine risk factors. There are also companies that are involved in two or more of these activities.
Companies and Involvement
It’s helpful when evaluating any mining-related company, which activities they are involved in. With this in mind, the list below may be helpful in sorting them out. We also suggest you attend the free online uranium investor forum available here on Channelchek on August 31. A number of the companies listed below will be discussing their activities and prospects with the Senior Energy Analyst from Noble Capital Markets.
An asterisk (*) in the description indicates that the company is a hybrid that is active in more than one related activity.
Azincourt Energy Corp. (AZZURF) is a Canadian-based exploration stage company. It is engaged in the acquisition, exploration, and development of mineral properties. The company's two uranium projects include Escalera-Lituania-Condorlit Projects and East Preston Uranium Project. The current market cap is $12.35 million.
Blue Sky Uranium Corp. (BKUCF) is a junior mineral exploration company based in Canada. The company focuses on uranium exploration projects in southern Argentina. It owns an interest in various exploration properties. The current market cap is $21.54 million.
Peninsula Energy Ltd. (PENMF) is a uranium mining and development company. The company's project includes Lance ISR Uranium Projects located on the northeast flank of the Powder River Basin in Wyoming and Karoo Uranium Projects in South Africa. *It has three reportable operating segments, Lance uranium projects, Wyoming USA; Karoo uranium projects, South Africa; and Corporate/Other. The current market cap is $90.14 million.
Standard Uranium Ltd. (STTDF) is a Canadian uranium exploration company focused on its Davidson River flagship project in the Southwest Athabasca Uranium District.
GoviEx Uranium Inc. (GVXXF) is a Canada-based company involved in industrial metals and mining business sector. The company is focused on evaluation and development of uranium properties located in the Republic of Niger. *It operates through Exploration of Mineral Properties in segment. The current market cap is $85.13 million.
enCore Energy Corp. (ENCUF) is a developer-focused on becoming a domestic United States uranium producer. With significant existing resources in the southwest United States and licensed uranium production facilities in Texas, enCore holds the largest uranium position in the Grants Mineral Belt and licensed processing capacity to respond quickly to market opportunities. The current market cap is $174.04 million.
Energy Fuels (UUUU) is the largest uranium producer in the U.S. and holds more production capacity and uranium resources than any other U.S. producer. The current market cap is $658.65 million.
As with investing in any sector, knowing the various segments in the space allows for better filtering for “watch” lists, and eventual positions. The attention now being paid to uranium is coming from many different areas. Much of the globe has as its goal to reduce fossil fuel use. It is not expected that wind and solar alone will allow for an uninterrupted supply of power at current usage rates. Power usage is expected to trend upwards.
Registering for the no-cost Noble Capital Markets Uranium Power Players Investor Forum will allow insights into specific companies within the segments exploration, development, and mining companies. This is the online event allows attendees to ask questions of management if they choose.
Why Uranium Prices Have Been Rising
The Increasing Popularity of Uranium Investments
Can Mining Be Green and Sustainable?
How Does Uranium Fit Into the ESG Landscape?
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