World billionaires have highlighted on the profitable promises of investing in uranium. Elon Musk, Bill Gates and Jeff Bezos, have all at a time tipped the world on their plans to invest in Uranium. No doubt, uranium is certainly poised to replace oil in the near future. As the world prepares to migrate to a more ecofriendly source of energy, we are sure to see Uranium grow in value. There is no better time to tap from the huge returns of early investing than now. Unlike oil, which is traded in the stock market as a commodity, the only way to invest in Uranium is by investing in Uranium Exploration Entities. So, what are some of these entities and how can you invest in Uranium?
URANIUM EXPLORATION FIRMS
The huge potentials of these firms cannot be overemphasized. Think about the big names of the oil and gas sector and what the beginning was like for them and just how far they have come. Then compare to the few Uranium exploration firm we have around right now. Amir Adnani, the founder of Uranium Energy Corporation, which is one of the leading Uranium Exploration Companies, was named Forbes 40 under 40 to watch out. This cannot be unconnected to the prospects held by Uranium as the world prepares for Renewable Energy boom.
At a time like this when the whole world is focused on climate change, it is no understatement to say that these Uranium Exploration Companies will emerge as the Amazons and Metas of the Internet boom. Below are the leading companies in Uranium Exploration, currently tradable in the US stock market.
· Cameco Corporation (NYSE:CCJ)
· Uranium Energy (NYSEAMERICAN:UEC)
· Denison Mines (NYSEAMERICAN:DNN)
As one of the leading producers of uranium, Cameco is an attractive investment to consider. Currently, the company has the licensed capacity to produce 53 million pounds of uranium concentrate annually.
Further, the company has 455 million pounds of proven and probable mineral reserves. The company also believes that it has some of the best undeveloped uranium projects in the world. There seems to be visibility for further growth in proved reserves.
For the third quarter, Cameco reported revenue of $361 million. The company placed 20 million pounds of triuranium octoxide under long-term contracts in 2021.
A report from World Nuclear Association indicates a 2.6% growth in nuclear fuel demand. Growth has accelerated from the previous estimate of 2%. As the demand for nuclear power increases, Cameco is likely to benefit.
From a financial perspective, Cameco reported $1.4 billion in cash and short-term investments. The company also has $1 billion in undrawn credit facility. With a strong liquidity buffer, there is headroom for investment in development and growth projects.
Uranium Energy (UEC)
Uranium Energy is a U.S. based uranium mining and exploration company. UEC stock is higher by nearly 52% in the last 12 months. However, the stock has corrected steeply from all-time highs of $5.80 to current levels of $2.93. This seems like a good accumulation opportunity.
In terms of assets, Uranium Energy currently has 4.1 million pounds in physical uranium portfolio. Further, resources at Wyoming are estimated at 42 million pounds.
The company currently holds 118,000 acres Wyoming’s prolific uranium producing Power River and Great Divide Basins. It seems likely that the company’s proved assets will swell in the coming years.
Uranium Energy believes that uranium demand will grow at a compound annual growth rate (CAGR) of 3.1% through 2040. Demand will be driven by the increasing need for nuclear power. As an example, China is planning 150 new nuclear reactors in the next 15 years.
From a financial perspective, Uranium Energy has a healthy balance sheet with $120 million in liquid assets. With a production-ready resource base, UEC stock looks like a potential value creator. In particular, as uranium prices remain firm. Additionally, the demand outlook for nuclear power might imply further upside in spot price.
DNN stock also looks attractive among uranium stocks. From November 2021 highs of $2.14, the penny stock has corrected to current levels of $1.20. This seems like a good accumulation opportunity.
As an overview, Denison Mines is involved in uranium exploration and development in Canada. The company has a diversified Athabasca Basin asset base.
With interest in several strategic assets, the company has exploration potential over an area of 280,000 hectares. The company believes that it’s positioned to be among the lowest cost producers of uranium in the region.
Additionally, Denison Mines has holdings of 2.4 million pounds of uranium, which has a market value of 131 million Canadian dollar. Denison Mines also has equity investment in GoviEx Uranium (OTCMKTS:GVXXF) and Skyharbour Resources (OTCMKTS:SYHBF). This gives the company exposure to several uranium assets.
Overall, Wheeler River is likely to be a game-changing asset for the company. The asset has a net present value of $1.3 billion with an initial rate of return of 38.7%. Once production commences in the asset, meaningful upside in the stock is likely.
Denison has been active on the strategic investment front. As the company’s financial flexibility increases in the coming years, further asset acquisition will boost valuations.
HOW TO INVEST IN URANIUM STOCKS FROM NIGERIA
To buy Uranium stocks from Nigeria, you need to sign up with an online broker. These brokers allow you to deposit Naira after verifying your identity, which is converted to dollars and then held by a registered US entity. This allows you to invest the dollars in the US stock market through the online brokers. You can hold your investments for as long as you want. You are also free to liquidate the investments to Naira at any time of your choice. Below are two of the registered brokers that works for Nigeria.
To get started, visit either of the links and download the Mobile Application that suits your phone’s operating system. That is, Android or Apple. Sign up and verify your identity. Then fund your account. It usually takes two business days for deposits to be available for investing.
When ready, search for either of the Uranium stocks listed above using their abbreviated stock name. The stock will show up with a buy and sell option. Select buy and go ahead to order for the value of your choice. Now that you have bought your stock, hold it and wait for your returns.
Reference: https://finance.yahoo.com/news/3-best-uranium-stocks-buy-110030473.htmlFollow The Futurist For More