May 02, 2024
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Why are uranium stocks booming?

InvestorNews

15 Comments

Uranium stocks have been rising since November 2020 and are now very clearly in a strong bull run. We asked some of our InvestorIntel team members and experts about what’s their view as to why uranium stocks are booming.

If we look at the two leading US listed uranium miners their stock prices are both up around 150% over the past 3 months (see chart below). Some of the other uranium miners such as Western Uranium & Vanadium Corp. (CSE: WUC | OTCQX: WSTRF) and Fission Uranium Corp. (TSX: FCU | OTCQX: FCUUF) have seen impressive gains around 70% over the past 3 months.

What is going on, asks InvestorIntel CEO Tracy Weslosky. This is extraordinarily. Something is up! The impeachment vote? War mongers? The Biden factor? What?

Leading US uranium miners Energy Fuels Inc. (NYSE American: UUUU) and Ur‐Energy Inc. (NYSE American: URG) are up about 150% the past 3 months

 

Looking at the chart below we can see uranium prices have picked up a little but not enough to explain the uranium miners stock prices surging. So why?

Uranium spot price 1 year history – Uranium prices started a new uptrend back in mid Nov. 2020

Source: Trading economics

Here are a few experts views sought this week by InvestorIntel:

Jack Lifton, host of The Technology Metals Show – “The USA imports 95% of the uranium it needs to operate its 25% of the worlds civilian nuclear reactors that provide almost 30% of American baseload (available at any time) electricity needs and accounts for more than half of all carbon free power generation in the USA. It’s imperative therefore that America produce uranium domestically for its security of supply of carbon free electric power. The US Congress has recognized this need and recently funded a program to buy domestic uranium.”

Peter Clausi – InvestorIntel Host, CBLT Inc. (TSXV: CBLT) CEO – “No matter where you are on the political spectrum, utilities and a nuclear fleet need uranium.”

Industry insider Fission Uranium President & COO Ross McElroy stated back in August 2020 – “I think we are in the start of a bull market right now. That’s happened because there’s been so many production shutdowns globally. All the major mines, even all the production in Canada has been shutdown. So, we know the demand is there and it continues to grow, supply is constricting and these are the things that are making the bottom of the bull market happen.”

Spot on Ross, you called it before most others.

Here is how investors can track the uranium miners

InvestorIntel readers can track the uranium sector at Uranium Watchlist”

InvestorChannel’s uranium Watchlist – January 14, 2021

Source

Uranium stocks that we follow closely at InvestorIntel include:

Closing remarks

My view is that the uranium stocks are booming the past 2 1/2 months as a result of the Biden victory. The market thinks Biden will support nuclear energy as a way of reaching his 100% carbon-free electricity target by 2035. If Biden’s US$2 trillion green infrastructure and jobs plan gets passed through the Senate during the course of 2021, then it looks like the uranium miners will have a tremendous decade ahead.

In any event I also hear what insiders have been saying for some time, and that is that uranium demand continues to grow as supply constricts. This is also a positive for the underlying fundamentals of the uranium bull market.

Happy to hear what InvestorIntel readers think in the comments section below. Also if you think the uranium miners bull run can be maintained.

Further reading

Disclaimer: The author of this Investor.News post, which is published by InvestorNews Inc., may or may not be a shareholder of any of the companies mentioned in this column. No company mentioned has sponsored or paid for this content on Investor.News, and InvestorNews Inc. does not accept opt-in payments from advertisers. While InvestorNews Inc. provides digital media services like video interviews and podcasts to advertisers, not all are paid promotions. Any sponsored video interview will be clearly marked in the summary. The author of this piece is not a licensed investment advisor and makes no recommendations to buy, sell, or hold any securities. If the author holds an investment advisor license, this will be stated in their biography. Conduct your own due diligence by reviewing public documents of any company. For our full legal notices and disclaimers, click here click here.

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15 responses

  1. Alexandre Hunt Avatar
    Alexandre Hunt

    An additional note – If the USA wants to se uranium for anything related to non peaceful purposes, the uranium has to be mined domestically. Currently, US has no active uranium mine, all just circulating low ppm water and no new wells. US needs domestic uranium not only for weapons but for its nuclear fleets.

    Reply
  2. Philip Howard Mills Avatar
    Philip Howard Mills

    Uuuu has been a 3X since I started with it mid 2020…”fits and starts” in the Ur sector…More to Come! Also there is a new Ur ETF- URNM is the symbol…

    Reply
  3. Johnson Avatar
    Johnson

    How long have you been reporting a uranium bul l market

    Reply
    1. Trent Avatar
      Trent

      I have a Ton of uranium mining stocks. How long has it been since you looked at the markets? In short, my stocks doubled in value in the last month. Yes DOUBLED in value. Maybe do some fact checking before posting would be my suggestion.

      Reply
    2. Tracy Weslosky Avatar
      Tracy Weslosky

      Trent, We invest a great deal in our coverage of the uranium market. It seems this is the 1st time you have been here? As you are so knowledgeable, please provide examples of the stocks you are referencing before you cast such stones. Merci. Tracy

      Reply
    3. Trent Larson Avatar
      Trent Larson

      denison mines, altima res cgx energy Cameco, energy fuels, fission to name a few off the top of my head. In all over 100K shares which has been in sad shape for years. Since I’ve owned them the top value on the portfolio was around 172K. Last period ending about 38K value. Last statement over 68K. Something is definitely up.

      Reply
      1. Tracy Weslosky Avatar
        Tracy Weslosky

        Thank you Trent – The 20 uranium companies we follow may be accessed here, https://investorchannel.com/watchlist/uranium

        We find this useful to monitor this sector, and others. Have a great afternoon.

        Reply
  4. Michael D. Campbell Avatar
    Michael D. Campbell

    The reason markets are rising is becasue it’s time for uranium and nuclear power to be on the move:
    https://world-nuclear-news.org/Articles/US-uranium-miners-ready-to-support-nuclear-power,?feed=feed

    Reply
  5. Nick Mastrippolito Avatar
    Nick Mastrippolito

    I have been watching the uranium miners for a long time but only recently invested in (CJJ). The price is up, and it seems my greater awareness to invest missed the runup with (CJJ). AM I TO LATE TO PROCEED WITH A GREATER INVESTMENT. I am puzzled, as my rule is never to invest in as HIGH a stock as the Uranium Miners are now given the quickness of the move upward, and the high price they all seem to be holding now? It is something some daring investors say, “buy high and it will go higher”, and that always scared me totally, If you have suggestions, for me, please comment, your input is welcomed, and at this point NEEDED. ? PUZZLED?

    Reply
    1. JOHN ONG Avatar
      JOHN ONG

      opportunity of a life time-if you scared you shouldnt be investing. what is there to be scared?dEMAND IS GREATER THAN SUPPLY-PRODECER CLOSING MINES NEED 60 DOLLARS A LB to make money (now 31)utilities need to come in and buy etc……

      Reply
  6. Richard Avatar
    Richard

    Well,I’ve been to all of the Wyoming Ur mines in the Powder River Basin,bran spanking new mines in the Pumkin Buttes area,the Oshoto mine is moving right along,about as dirt cheap a stock can be.Wyoming is AAA+ great source of Ur,also very mining
    friendly.oao

    Reply
  7. Trent Avatar
    Trent

    Well with stocks there is always that risk. With the uranium mining stocks it’s a test of patience. I will not give advise to buy. But I do have about 200K shares in mining stocks and indeed its moving up as late. I would not expect much in the short term but there are a some things different in the segment. After decades of high inventories and cheap U308 the inventories are finally being depleted. It started years back with Russian dumping etc.. Allot of companies are still trying to buy low with short term contracts to full-fill contracts with utilities. At some point as inventories continue to deplete I see miners starting to go back into production and utilities will probably pay a higher price to secure longer term contracts. I think China is on a path to open more plants. Japan is probably going to restart more. Other countries are are pulling back for renewables and unfortunately France, a long time user of Nuclear is pulling back. I’ve always was impressed with how France centralized their infrastructure in their plant designs. No doubt the safest use of nuclear energy in the planet. The rest of the world should have followed their example. I’m still pissed at Japan for being completely stupid about storing that waste so close to the Ocean. I mean after all, that country lies on top of several tectonic plates. My portfolio at its highest was 179K. Its currently about 88K in value but has tripled in recent months. I don’t expect much more movement this year but I expect over the next few years that it could go over 200K in value or more. If it does, I will probably cash out. I’ve seen this segment crash an burn so many times in the last 45 years. To say its volatile is an understatement. All we need is one more disaster and I can see more countries focusing on renewables with a vengeance.

    Reply
  8. JOHN ONG Avatar
    JOHN ONG

    opportunity of a life time-if you scared you shouldnt be investing. what is there to be scared?dEMAND IS GREATER THAN SUPPLY-PRODECER CLOSING MINES NEED 60 DOLLARS A LB to make money (now 31)utilities need to come in and buy etc……

    Reply
  9. George Mast Avatar
    George Mast

    something that is so easy to do is overlook the obvious. The equities market is so high, and what some say overvalued, an adjustment is in the offing. This brings with it a precipitous movement when that adjustment happens. Good gets sold with the bad, usual, and customary is a reduced stock price in a large percentage of stocks happens, (normal and acceptable market happening).
    If your are so needy you have to take higher risk then prudent investing tells most of us in investing 101, GO FOR IT BABY. If you have some rules of investing in your set up, place a buy for the trinkets of GREAT VALUE NOW, at a reasonable target buy in that will hit with the anticipated adjustment. I find it better to keep cash for use when a value presents it self, and then grab all the value one can, even if passed up on, at higher risk high cost. Really basic.
    If you pushed stones with your nose to earn the cash, you understand the basics, if you don’t understand, that is ok also. GO FOR IT BABY>>>>> I love those that swim up stream and make it, but the point is there are many that do not make it, and one never hears from them again, how sad.

    Reply
  10. Sean Avatar
    Sean

    Could you comment on URA vs URNM?

    Reply

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