Alongside writing and editing, Marko works on projects related to online technology and digital marketing. In fact, for many segments of the economy, demand for electricity is inelastic. The United Nations forecasts that by 2030, there could be a 36% increase in the number of global cities with populations over 1 million people. According to the International Energy Agency, by 2035 more than 90% of net energy demand will derive from emerging economies.
The quest for cleaner, more environmentally-friendly fuels has propelled the growth of the nuclear industry in electricity generation. As mentioned, that backdrop is helping uranium ETFs and related products gain steam. Today there are five uranium ETFs available, as well as three investment vehicles backed by physical uranium — and perhaps more to come. For instance, in March of last year, France’s parliament voted in favor of President Emmanuel Macron’s nuclear investment plan – part of a $56 billion initiative that would see six new reactors built. A month later, Finland finally saw its long-delayed Olkiluoto 3 reactor start regular production.
Three countries – Kazakhstan, Canada, and Australia – provide about two-thirds of the annual supply of uranium. Therefore, events in these countries can have a disproportionate impact on prices. In-situ leaching accounts for about 48% of all uranium mining, while open-pit and underground mining comprise about 47% of mining. Open pit mining usually produces ores with less than 0.5% uranium content, and the mining methods works only with minerals located less than 400 feet below the surface. Miners dump the surface materials, known as waste rock, near the open pit. They then dig a series of steps, known as benches, into the mine to facilitate removal of the uranium ores.
One of the easiest ways to invest in uranium is through uranium-related stocks. Big mining and production companies like Cameco, Kazatomprom, BHP and Rio Tinto all offer uranium exposure in the stock market. You can also invest in smaller or more niche companies like Uranium Energy Corp and Yellow Cake PLC. Since 2011, Japanese public opinion toward nuclear energy and expansion has soured. In 2021, nuclear power plants produced just 7% of the country’s energy supply. Just over a decade ago, Japan was considered the apex of the global nuclear energy boom.
Lifted lockdowns and extreme weather around the globe increased demand for fossil fuels, while the Russia-Ukraine war dramatically slashed supplies. Since Japan suffers a dearth of native fossil fuels and isn’t connected to mainland power, the country’s imported energy costs have soared. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer. UUUU stock is also a way for you to gain exposure to rare earth minerals in addition to vanadium and radium, which the company also mines.
Those interested in uranium stocks may want to look at the countries that produce the most of the metal. The three top uranium-producing countries are Kazakhstan, Canada and Namibia. Of course, these large mining companies are not the last word in the market. In fact, there are quite a few mid-tier and junior uranium exploration companies that investors may want to take a closer look at. As a starting point, check out our list of the top-performing TSXV- and TSX-listed stocks and our list of the biggest ASX-listed uranium stocks. Aside from uranium exposure and liquidity, you’ll enjoy extra benefits like automatic diversity.
The only uranium growth stock you could risk buying
Instead of going all-in on uranium, Q.ai offers a variety of Investment Kits to help you reach your goals. For instance, the Clean Tech Kit lets you invest in the future of zero emissions (and sleep well doing it). And for those who want to invest in precious mined goods, our Precious Metals Kit provides all the shiny exposure you need.
Changes in the levels of these uranium inventories can impact the price of the commodity. Just as OPEC decisions impact oil prices, decisions by a small group of uranium suppliers can impact the direction of uranium prices. Uranium has several important industrial applications, but its principal use is as a fissionable material to produce nuclear fuel for electricity generation. Yellow Cake’s access to material volumes of uranium at prevailing market prices comes via its long-term partnership with Kazatomprom. Through this partnership, it has the option to purchase up to US$100 million of uranium annually.
How to Buy Uranium Stocks
Additionally, officials will consider extending the lifespan of existing reactors beyond the current maximum of 60 years.
However, chemists didn’t formally isolate uranium as an element until the 19th century. In-situ leaching produces little waste rock and leaves a minimal environmental footprint. However, miners must monitor contamination of aquifers and ensure disposal of waste water. Typically milling allows recovery of 95 – 98% of the uranium residing in the rocks. Milling is the only effective method for extracting uranium from conventionally mined ores.
How is Uranium Produced?
- Finally, if you really want to play any rally in spot uranium prices, buying units of the Sprott Physical Uranium Trust Fund is your best bet.
- Some of its top holdings are Cameco, which weighs in at 19.86 percent; Kazatomprom at a weight of 19.81 percent; and NexGen Energy, coming in at 7.23 percent.
- If prices decline, traders must deposit additional margin in order to maintain their positions.
- There is also increasing demand for uranium from China and India as both these countries grapple with air pollution in the face of growing electricity demand.
- As the world economy expands, demand for power should grow, and uranium prices should respond favorably.
- The Global X Uranium ETF tracks a basket of uranium miners, as well as nuclear component producers.
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. 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. There’s also the Uranium Royalty Corporation, which makes physical uranium purchases and invests in uranium-based companies in exchange for royalties.
Uranium Mining Area Near Los Angeles Almost Got Trapped
As mentioned, it’s been credited with helping to boost prices and has become a popular investment vehicle. Following the Fukushima disaster, the price of uranium – the crucial ingredient of nuclear power – plummeted. Nuclear energy promises to fill these gaps as smaller, safer, more efficient models hit the market. The United States recently buffed its nuclear sector with $30 billion in tax credits to encourage nuclear power. As more countries pour capital into these next-generation investments, the power – and profit – potential could be enormous. Since January 2022, the spot price of uranium is up approximately 162%.
AuKing Mining: Advancing Uranium, and Critical and Base Metals Assets in Australia, Tanzania and Canada
DNN stock is up 43.75% in the last 12 months, and analysts give the stock a $3.02 price target, which would be a 63% gain for investors. Additionally, four out of seven analysts give the stock a Strong Buy rating. Once the company begins production, it expects to mine 20 million pounds of uranium annually, which will be enough to cover 50% of the West’s supply needs. A distinguishing characteristic of Cameco’s business model is that it has a controlling interest in its low-cost mines, which produce high-grade uranium. Additionally, Cameco is recognized for its environmentally friendly way of mining uranium.
In general, the illusory nature of momentum profits the best reason for trading in uranium is to bet on the growing energy needs of the world. Another way to trade on shares of uranium companies is through the use of a contract for difference (CFD) derivative instrument. Believers include John Ciampaglia, CEO of Sprott Asset Management, who sees many extremely bullish factors shaping today’s uranium market.
This form of mining, also called strip-mining, involves using heavy machinery to remove soil and rocks at the surface of the earth and uncover valuable uranium ores just below the surface. The Canadian Saskatchewan mines are the exception and have yields of more than 20% uranium. However, flooding and environmental concerns make the future of mining in this region uncertain.