Ukrainian nuke plant attack: BHP, Rio Tinto, Aura Energy – stocks in focus

Highlights 

• Europe’s largest nuclear plant situated in Southern Ukraine, Zaporizhzhia, caught fire due to Russian shelling on Friday.
• According to the International Atomic Energy Agency (IAEA), the radiation levels are under control at present and the crucial equipment of the plant is intact.
• Amid the fears of a nuclear disaster, uranium stocks have caught the attention of investors.

Ukraine’s Zaporizhzhia nuclear power plant was reportedly attacked by Russian military forces on Friday morning haunting people worldwide, especially Europeans, fearing a rerun of the Chernobyl-type disaster in 1986. Europe’s largest nuclear plant Zaporizhzhia, which is situated in Southern Ukraine, was set ablaze, sending shockwaves across the world. The shelling by Russia has jeopardised the protection of the whole continent and thus the world leaders are heavily criticising Russia for its attacks.

According to the International Atomic Energy Agency (IAEA), the radiation levels are under control at present and the crucial equipment of the plant is intact. However, the UN’s nuclear watchdog is in the 24/7 response mode due to the dangerous situation at present. On 4 March, Ukrainian minister Dmytro Kuleba has reportedly put out a warning regarding the impact of the fire in Europe’s largest nuclear plant. He asked Moscow to stop its attacks immediately as the impact of the Zaporizhzhia plant blowing up would be 10 times greater than Chernobyl.

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Amid the fears of a nuclear disaster, uranium stocks have caught the attention of investors. Uranium is not a very popular investment because of its close connection with nuclear disasters. The radioactive metal is basically used to generate electricity in nuclear power plants along with other industrial applications, however, it is also used to create weapons of mass destruction.

But uranium is still vital for the future of the economy as the world may go out of fossil fuels in the coming decades and nuclear energy may potentially have a crucial role in the future of the global energy markets. Around 10% of the global energy requirements are already being met by nuclear energy, and this figure may keep increasing with the declining dependence on fossil fuels.

Let’s look at 5 LSE-listed uranium stocks that may be added to your portfolio for good long-term returns.

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BHP Group Limited (LON: BHP)

Anglo-Australian mining company BHP generated around 3.3 million metric tons of uranium in the year ended June 2021. BHP Group Limited’s shares closed at GBX 2,719.50, up by 2.12%, on 3 March 2022.

With a market cap of £57,437.79 million, the company has provided its shareholders with a return of 15.53% as of 3 March 2022, while its year-to-date return stands at 23.64%.

Rio Tinto plc (LON: RIO)

The second-largest mining company worldwide after BHP, Rio Tinto, produced approximately 2.87 million pounds of Uranium. Rio Tinto plc’s shares closed at GBX 6,129.00, up by 0.02%, on 3 March 20

With a market cap of £76,564.43 million, the FTSE100 company has provided its shareholders with a year-to-date return of 25.29% as of 3 March 2022, while its one-year return stands at -4.76%.

Yellow Cake plc (LON:YCA)

The jersey-headquartered uranium investment company, Yellow Cake, allows investors to directly deal in uranium without the associated risks of production and development. Yellow Cake plc’s shares closed at GBX 377.50, up by 1.34%, on 3 March 2022.

With a market cap of £57,437.79 million, the FTSE AIM 100 Index constituent has provided its shareholders with a return of 66.30% as of 3 March 2022, while its year-to-date return stands at 11.03%.

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Aura Energy Limited (LON: AURA)

The Australia-headquartered mineral company, Aura Energy, has recently restructured its board in January before starting off with uranium production at the Tiris uranium project. Aura Energy Limited’s shares closed at GBX 16.60, up by 3.75%, on 3 March 2022.

With a market cap of £70.38 million, the company has provided its shareholders with a significant return of 183.76% as of 3 March 2022, while its year-to-date return stands at 27.15%.

© 2022 Kalkine Media®

Geiger Counter Limited (LON:GCL)

Jersey-headquartered closed-ended investment firm Geiger Counter invests in stocks associated with the exploration and production of uranium. Geiger Counter Limited’s shares closed at GBX 60.50 on 3 March 2022.

With a market cap of £70.38 million, the company has provided its shareholders with a return of 66.92% as of 3 March 2022, while its year-to-date return stands at 12.04%.

Note: The above content constitutes a very preliminary observation or view based on industry trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.