The uranium price was sitting at $19.25 per pound as of Wednesday (June 14), but many analysts believe it will rise in the near future. Investors are also getting more interested in uranium, and many of the best uranium stocks have recorded impressive year-to-date gains.
Optimism about uranium is centered on a widely anticipated supply crunch. According to the World Nuclear Association, about 60 nuclear reactors are currently under construction, and they will be needed to help meet the world’s growing energy needs. For example, global demand for electricity is increasing twice as fast as overall energy use. The organization says electricity demand is likely to rise by over two-thirds from 2011 to 2035.
Industry leaders and experts believe the uranium price is set to boom because the utilities companies that run those reactors will need to secure new supply contracts in the next few years. However, low prices have forced some uranium mines to cut production or close, meaning that supply could run short.
As excitement about the uranium space increases, it is important for investors to be able to make informed investment decisions. With that in mind, we’ve put together a list of the top-gaining TSX- and TSXV-listed uranium stocks year-to-date. All had market caps of at least $10 million as of June 15, and all other data below is also accurate as of that date.
1. Plateau Uranium (TSXV:PLU)
Market cap: $29.19 million; year-to-date gain: 80 percent
Plateau Uranium tops the list of best uranium stocks, and has gained 80 percent since the start of the year. In April, the company signed a letter of intent with European trader Curzon Resources for the delivery of 2 million pounds of U3O8 over the first five years of production at Plateau’s Macusani Plateau uranium project in Peru. The two companies have agreed to work toward an offtake agreement over the next 12 months as Macusani Plateau is still under development.
The company intends to mine lithium as a by-product of uranium at Macusani Plateau in order to meet rising demand for lithium-ion batteries. Plateau has completed a preliminary economic assessment for the project, and intends to commence commercial production in late 2020.
2. Mega Uranium (TSX:MGA)
Market cap: $52.7 million; year-to-date gain: 28.57 percent
Mega Uranium is working on a prefeasibility study for its Ben Lomond project in Australia, and is at the drilling stage at its Georgetown project. Both projects contain deposits of uranium and molybdenum. The company also has a joint venture with Cameco (TSX:CCO,NYSE:CCJ) to develop its Kintyre Rocks uranium project in Western Australia. Most recently, Mega Uranium closed a private placement on June 2, raising $1,250,000 from the issuance and sale of 6,944,445 units.
3. GoviEx Uranium (TSXV:GXU)
Market cap: $62.42 million; year-to-date gain: 26.67 percent
GoviEx Uranium is developing three uranium projects in Africa. In May, the company completed an exploratory drill program at its Madaouela uranium project in Niger; it anticipates that there is enough uranium to sustain an 18-year mine life. The company also owns the Falea uranium, silver and copper deposit in Mali, as well as three uranium deposits that comprise the Zambia-based Mutanga project.
4. NexGen Energy (TSX:NXE,NYSEMKT:NXE)
Market cap: $907.35 million; year-to-date gain: 25.75 percent
NexGen Energy has several uranium properties in Saskatchewan’s Athabasca Basin. In May, the company began trading on the NYSE MKT, and in June it announced new drill hole results that expanded mineralization at its Arrow deposit. The company has completed a large amount of drilling at its other properties as well this year.
5. Forsys Metals (TSX:FSY)
Market cap: $18.29 million; year-to-date gain: 18.18 percent
Number five on the list of best uranium stocks is Forsys Metals. The firm’s flagship Norasa uranium project includes the Valencia project, which has a 25-year mining license, and the Namibplaas project.
Through its wholly owned subsidiary, Westport Resources Nambia, Forsys Metals also has a 70-percent interest in Omatjete Mining Company’s prospecting license. Additionally, the company has an earn-in agreement with B2Gold Namibia that allows B2Gold (TSX:BTO,NYSEMKT:BTG) to earn up to a 100-percent interest in Forsys’ Ondundu gold project.
Best uranium stocks: Honorable mentions
These five uranium stocks have also seen year-to-date share price gains:
- Skyharbour Resources (TSXV:SYH) — Market cap: $19.72 million; year-to-date gain: 16.67 percent
- Laramide Resources (TSX:LAM,ASX:LAM) — Market cap: $36.18 million; year-to-date gain: 10.34 percent
- Ur-Energy (TSX:URE,NYSEMKT:URG) — Market cap: $108.84 million; year-to-date gain: 9.86 percent
- Uranium Participation (TSX:U) — Market cap: $465.27 million; year-to-date gain: 1.05 percent
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Securities Disclosure: I, Melissa Shaw, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Plateau Uranium and Kivalliq Energy are clients of the Investing News Network. This article is not paid-for content.