UEC, CCJ & UUUU: 3 Uranium stocks to watch as clean energy demand rise

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UEC, CCJ & UUUU: 3 Uranium stocks to watch as clean energy demand rise

 UEC, CCJ & UUUU: 3 Uranium stocks to watch as clean energy demand rise
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Highlights

  • In the quarter ended October 31, 2021, Uranium Energy’s net loss was US$2 million.
  • Cameco’s flagship McArthur River mine accounts for roughly 50% of its total output.
  • Energy Fuels is the largest uranium producer in the US, headquartered in Colorado.

Uranium is used as fuel in nuclear reactors, power plants, naval ships, and submarines. The US industries consume the highest amount of Uranium, followed by China, France, and Russia.

This heavy metal has been in use as a clean source of concentrated energy for over 60 years, mainly in the high capital-intensive heavy industries.

Uranium stocks are getting attention as demand for clean energy has increased. The uncertainties in the global energy market are accelerating growth in the Uranium industry.

The following are three Uranium stocks that may benefit from the current disruption in the energy market.

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Uranium Energy Corp. (AMEX: UEC)

Uranium Energy is based in Texas, US. It develops uranium mines in the US and Paraguay. Its main hub is in South Texas called the Hobson processing facility, central to Palangana, Burke Hollow, and Goliad ISR projects. It also has ventures in Colorado, Arizona, and New Mexico.

For the quarter ended October 31, 2021, its net loss was US$2 million compared to US$4.9 million in the same period of 2020. The loss from operation was US$4.8 million against a loss of US$3.3 million in 2020. The net loss per share diluted was US$0.01 versus US$0.03 in 2020.

The stock was down 4.8% to US$4.96 at the close of the regular market session on Friday. The stock’s 52-week high and low were US$5.79 and US$1.89, respectively.

The stock gained 32% YTD. Its market cap is US$1.3 billion.

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Cameco Corporation (NYSE: CCJ)      

Cameco is one of the world's largest uranium producers based in Canada. Its flagship McArthur River mine in Saskatchewan accounts for roughly 50% of its total output. Cameco also runs uranium conversion and fabrication facilities.

Cameco’s revenue in fiscal 2021 declined to C$1,475 million (US$1,194 million) from C$1,800 million in fiscal 2020.

The company has a market cap of US$11.7 billion. The forward P/E for one year is 344.00, the EPS is US$-0.20, and the annualized dividend is US$0.095.

The stock’s 52-week high and low were US$28.49 and US$15.34, respectively.

On Friday, the stock closed at US$27.11, down 1.49% from the previous close.

The stock gained 19.3% YTD.

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UEC, CCJ & UUUU: 3 Uranium stocks to watch as clean energy demand rise

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Energy Fuels Inc (AMEX: UUUU)

It is the largest uranium producer in the US, headquartered in Colorado. It also produces vanadium. The company holds three of America’s key uranium reserves: White Mesa Mill, Nichols Ranch ISR Facility, and Alta Mesa ISR Facility in Utah, Wyoming, and Texas, respectively.

White Mesa Mill has a production capacity of eight million pounds of U3O8 annually. Nichols Ranch 2 million pounds, and Alta Mesa hasn’t started production.

As of September 30, 2021, Energy Fuels had US$132.8 million in working cash.

In the quarter ended September 30, 2021, the net loss was US$8.0 million, compared to a net loss of US$8.9 million in the year-ago quarter. The losses were due to increased development expenditures.

On Friday, the stock closed at US$9.58, down 4.49% from its previous close.

It has a market cap of US$1.4 billion, the forward P/E for one year is -47.76, and the EPS is US$-0.24. The stock’s 52-week high and low were US$11.39 and US$4.32, respectively.

The stock gained over 12.8% year-to-date.

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Bottom line

Uranium stocks have been gaining traction since Russia began its invasion of Ukraine in late February. Higher fossil fuel costs are driving people to look at alternative energy sources, whose prices are also rising. The US nuclear power industry has been lobbying not to sanction Uranium imports from Russia. But the high Uranium prices are generating investors’ interest in Uranium stocks. Nonetheless, investors should apply due diligence before investing in the stock market.

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