Uranium, which is primarily used in nuclear power plants, is considered by many to be one of the most environmentally friendly methods of generating electricity. The demand for this radioactive metal is increasing in order to meet rising energy needs.
Businesses with uranium ties, either directly or indirectly, saw a surge in the stock markets around the world with the internet going frenzy with discussions on Reddit. Here are three uranium companies that could be worth a buy at the moment.
Cameco (NYSE: CCJ) is one of the leading uranium fuel manufacturers and suppliers in the world, essential for power in an ecologically sustainable environment. The firm’s production in global nuclear reactors is noted for its safety, reliableness, and carbon-free nuclear fuel products. The company has a competitive edge in that it has the biggest — 1.7 million acres — reserve in the world which produces an annual concentration of 53 million pounds of uranium.
Due to a serious fire earlier this year, the company had to shut down work for three months due to which it faced losses in Q2, along with COVID-19 restrictions. Despite these setbacks, the company successfully reopened its Cigar Lake location recently. In 2021, the company expects to produce 12 million pounds at full capacity.
At the end of July, the company announced its Q2 results which showed cash and short-term investments at $1.2 billion. With its long-term debt due to the pandemic and the damage caused by the forest fires coming to $1 billion, the corporation faced losses of $37 million.
On July 7, Cameco, GE Hitachi Nuclear Energy, and Global Nuclear Fuel-Americas said they will sign an agreement to investigate many collaboration areas that will promote the marketing and deployment of its BWRX-300 SMRs around the world, which is the latest product in clean energy for them.
Shares in Cameco have risen more than 80% year-to-date.
Uranium Energy Corp
Uranium Energy Corp (NYSE: UEC) is a South Texas-based U.S. company known for uranium exploration and production. They worked on various uranium projects in the United States and Paraguay, undertaking its extraction, exploration, distillation, and refining.
In late April, the company issued a financial statement in which it reported that it had $64.2 million in working capital, which included $43.9 million in cash and cash equivalents, $4 million in term deposits, and $26.2 million in uranium inventory holdings.
The company also mentioned the impact of the pandemic on its $10.0 million in term debt with a maturity date of January 31, 2022. The company believes that reopening working projects, various planned operations, and additional investments will help it repay the debt.
The company has been highly active in the development of the pipeline of resources to achieve continuous expansion, offering and generating low-cost uranium recovery.
Shares in Uranium Energy Corp have risen 80% year-to-date.
Ur-Energy Inc. (NYSE: URG) is a mining firm for uranium development. The company operates on the discovery, exploration, development, and operation of Uranium Resource Reserves in the U. S. around the Lost Creek Project in Sweetwater County, Wyoming. The firm recovers and processes around 2.6 million uranium which is packaged and exported throughout the U.S. and around the world.
The organization published its financial results in the first week of August. The firm had cash and equivalent resources of around $21.5 million.
For the three months ending June 30th, the group got debt forgiveness on net earnings, while a $903,000 benefit from loan forgiveness on other income was registered.
The objective of the corporation is to meet the net-zero emission targets for uranium, as outlined under the Biden Administration of The Paris Climate Agreement, 2021 by 2050.
Recently the company joined the Russell 3000 Index. Russell indexes are frequently utilized as benchmarks for effective portfolio techniques by investors and investment firms in individual stocks.
Ur-Energy’s share price has risen 140% so far this year, but be careful, as this is a micro-cap company trading at penny stock levels, which we do not recommend here at MyWallSt.
Instead of investing in risky companies, why not check out our shortlist of stocks that are well-established in their industries but still have the opportunity to give their shareholders unrivaled returns? Start your MyWallSt free access now.
Contributing Writer at MyWallSt
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