The Canada-listed uranium stocks we’ve dug up should benefit most from a continuing improvement in the price of uranium
SmallCapPower | September 7, 2021: Uranium prices have increased significantly over the past three weeks. Uranium is currently trading at US$38.70 per pound, a 29% increase from the middle of August when the commodity was trading at $30.00 per pound. Uranium is a radioactive chemical that is crucial to nuclear energy production. The demand for nuclear power as well as the global supply of uranium often affects the price of the commodity. Its price is often inversely affected by changes in the demand for fossil fuels. Pitchblende, autunite, carnotite, torbernite, uraninite, and uranophane are natural minerals that contain uranium. Mining processes include in-situ leaching, open-pit, and underground mining. One pound of uranium can produce as much energy as three million pounds of coal through fission. The Canada-listed uranium stocks we’ve uncovered should benefit most from the recent surge in uranium prices.
*Share price data and other metrics as of September 3, 2021
NexGen Energy Ltd. (TSX:NXE) – $7.14
Uranium exploration
NexGen Energy is a Canadian uranium exploration and development company established by Tigers Realm Group. NexGen’s flagship property is the Radio Uranium Project at the Rook I Property located in the Athabasca Basin, Saskatchewan. The property consists of 32 contiguous mineral claims totaling 35,065 hectares. NexGen holds an exclusive option to acquire an initial 70% interest in the project with an option to increase to 100% ownership subject to a 2% net smelter royalty. On July 26, 2021, NextGen announced that it had commenced 2021 Field and Regional Exploration Drilling Programs at the Rook I Property.
- Market Cap: $3,399.5M
- YTD-Return: +103.4%
- 7-Day Share Price Return: +24.0%
- 30-Day Return: +41.4%
- 30-Day Average Trading Volume: 1,809,600
Uranium Royalty Corp. (TSXV:URC) – $3.98
Uranium Royalties
Uranium Royalty Corp. (URC) is a pure-play uranium royalty company focused on gaining exposure to uranium prices by making strategic investments in uranium interests, including royalties, streams, debt and equity investments in uranium companies, as well as through holdings of physical uranium. URC has deep industry knowledge and expertise to identify and evaluate investment opportunities in the uranium industry. The Company’s management and Board include individuals with decades of combined experience in the uranium and nuclear energy sectors, including specific expertise in mine finance, project identification and evaluation, mine development and uranium sales and trading.
- Market Cap: $330.7M
- YTD-Return: +172.6%
- 7-Day Share Price Return: +15.0%
- 30-Day Return: +21.3%
- 30-Day Average Trading Volume: 130,720
Cypress Development Corp. (TSXV:CYP) – $1.64
Mining
Cypress Development engages in the acquisition, exploration, and development of mineral properties in the United States and Canada. It explores for lithium, uranium, zinc, and silver deposits. The Company’s flagship project is the 100% owned Clayton Valley lithium project covering an area of approximately 5,430 acres located in southwest Nevada. A 2020, pre-feasibility study on the project concluded potential for a mine to produce 27,400 tonnes of lithium annually over a mine life of 40 years. The Company was incorporated in 1992 and is headquartered in Vancouver, Canada.
- Market Cap: $205.8M
- YTD-Return: +86.4%
- 7-Day Share Price Return: +17.1%
- 30-Day Return: +22.4%
- 30-Day Average Trading Volume: 276,530
Denison Mines Corp. (TSX:DML) – $1.75
Uranium Mining
Denison is a uranium exploration and development company with interests focused on the Athabasca Basin region of northern Saskatchewan. The Company has an effective 95% interest in its flagship Wheeler River Uranium Project, which is the largest undeveloped uranium project in the infrastructure rich eastern portion of the Athabasca Basin region of northern Saskatchewan. Denison’s interests in Saskatchewan also include a 22.5% ownership interest in the McClean Lake joint venture, which includes several uranium deposits and the McClean Lake uranium mill, contracted to process the ore from the Cigar Lake mine under a toll milling agreement, plus a 25.17% interest in the Midwest Main and Midwest A deposits, and a 66.90% interest in the Tthe Heldeth Túé and Huskie deposits on the Waterbury Lake property.
- Market Cap: $1,410.0M
- YTD-Return: +108.3%
- 7-Day Share Price Return: +18.2%
- 30-Day Return: +25.9%
- 30-Day Average Trading Volume: 1,660,890
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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