Five Uranium Stocks You Need to Know About
In the world’s continued search for clean energy, many eyes are falling on nuclear energy. With its reliable and carbon-free output, nuclear power promises to address both the traditional issue of greenhouse gases, as well as the world’s constantly increasing energy needs.
Below we look at five of the top uranium-focussed stocks in the world, featured in the Global X Uranium ETF (ATOM):
Yellow Cake (United Kingdom: YCA)
- Market Cap: 887.10 Million (USD)
- PE: 1.88
- Index Weight: 2.63%
Headquartered in Jersey, UK, Yellow Cake PLC is a uniquely direct exposure to spot uranium prices. The company, which does not engage in any exploration, mining, or processing of uranium, seeks only to provide investors with a way to directly invest in uranium itself by holding onto and performing location swaps on physical uranium. Simply put, the company acts almost as a fund for physical uranium. Yellow Cake currently holds 8,500 tonnes of uranium oxide (U3O8—also called “yellowcake”), the primary material for synthesising nuclear reactor fuel.
Cameco (Canada: CCO)
- Market Cap: 10.26 Billion (USD)
- PE: 109.93
- Index Weight: 21.53%
Cameco Corporation is a Canadian uranium production and refining powerhouse. It is the world’s largest publicly traded uranium company by market capitalisation, and the fourth largest uranium producer by volume. Cameco operates in both Kazakhstan and North America, with its core operations located at “Cigar Lake” (Saskatchewan, Canada), the world’s highest-grade uranium mine. Due to poor market conditions, Cameco had previously lowered its uranium production to less than 25% capacity. However, as uranium interest and trade have increased dramatically, Cameco intends to raise production to 60% capacity by 2024, raising its annual estimated output of 2,700 tonnes to almost 6,500 tonnes. This strong historical infrastructure and ability to scale production places Cameco in the perfect position to capitalise on any increase in uranium demand.
Nac Kazatomprom (Kazakhstan: KAP)
- Market Cap: 7.04 Billion (USD)
- PE: 9.75
- Index Weight: 5.99%
National Atomic Company KazAtomProm (KAP) is the world’s largest producer and seller of uranium, accounting for almost 25% of global uranium output. The company is a national operator within Kazakhstan and is responsible for the country’s import and export of uranium and nuclear fuel. Being a national operator, KAP has priority rights to all of Kazakhstan’s extensive nuclear reserves, which accounts for 15% of the world’s total uranium resources, and nearly 50% of the aboveground uranium supply. The company currently produces over 20,000 tonnes of uranium annually. 100% of its products are exported for sale overseas.
Paladin Energy (Australia: PDN)
- Market Cap: 1.63 Billion (USD)
- PE: N/A
- Index Weight: 4.54%
Paladin Energy is a Western Australian uranium mining and exploration company, and the largest Australian uranium company by market cap. The company primarily operates in the “Langer Heinrich” mine in Namibia and owns a global uranium exploration portfolio. Paladin Energy temporarily paused operations in 2018 due to poor market conditions, however, as of May 2022, the company successfully raised capital (to significant investor interest), providing a clear pathway back to consistent and expanded uranium production. Paladin Energy produced 2,500 tonnes of uranium oxide at peak operations in 2014.
Uranium Energy (United States: UEC)
- Market Cap: 1.34 Billion (USD)
- PE: N/A
- Index Weight: 4.13%
Based in Vancouver Canada, Uranium Energy Corp (UEC) is the largest, pure-play, North American-focused uranium producer. The company is primarily engaged in the provision of uranium, exploration, and research activities, and owns a diversified portfolio of uranium holdings including one of the largest stockpiles of uranium oxide in the US and numerous projects located across the US, Canada and Paraguay. As of 2022, UEC produces almost 3,000 tonnes of uranium oxide annually. UEC also claims to have the largest resource base of any US based producer.
ATOM: For those wishing to invest in uranium and the nuclear power value chain, Global X Uranium ETF (ATOM) provides a way to do so. ATOM invests in a broad range of companies involved in uranium mining and the production of nuclear components, including those in extraction, refining, exploration, or manufacturing of equipment for the uranium and nuclear industries.
Click the fund name above to view the fund’s current holdings. Holdings are subject to change. Current and future holdings are subject to risk.