What are the best uranium stocks? We’ve compiled a list of companies on the TSX and TSXV that have seen year-to-date share price gains.
The U3O8 spot price dropped 12.89 percent in the first quarter of 2019 to US$25.35 per pound, likely as a result of the widespread economic slowdown.
Despite the downturn weighing on the sector, a number of uranium miners, explorers and producers have remained profitable, reporting share price growth over the Q1 period. In addition to stock upticks, these companies have also worked to advance their independent projects, consult with government officials and establish robust, diversified resource channels.
Below we run through the five uranium stocks on the TSX and TSXV with the biggest share price gains year-to-date. All data was obtained on April 4, 2019, from TradingView, and all companies listed had market caps above C$10 million at that time.
1. Ur-Energy (TSX:URE)
Year-to-date gain: 37.13 percent; share price: C$1.23
Ur-Energy is focused on operating its in situ recovery (ISR) uranium facility in Wyoming. Shares of Ur-Energy have steadily trended higher since early March after the company released its 2018 year end results, with US$11.3 million in gross profits.
Ur-Energy was able to capture 302,164 pounds of U3O8 at its Lost Creek plant, and subsequently sold 10,000 produced pounds of U3O8 on the spot market.
The US-based company has also played a pivotal role in launching the US Department of Commerce’s ongoing Section 232 investigation into foreign uranium imports into the US. American uranium miners have long been concerned about the country’s reliance on outsourced uranium and are lobbying for a 25 percent domestic quota to be included in the Section 232 ruling.
Year-to-date gain: 35.48 percent; share price: C$0.64
With a robust array of uranium projects located in Canada’s prolific Athabasca Basin, IsoEnergy has seen continued share price growth in 2019, gaining more than 15 percent in the last few weeks.
At this year’s Prospectors & Developers Association of Canada (PDAC) convention in Toronto, the Investing News Network (INN) spoke with IsoEnergy CEO, Director and President Craig Perry, who explained that the company’s Q1 activities were largely centered around advancing the Hurricane zone mineralization it discovered in June 2018.
“We are very happy to report we have had a fantastic quarter,” said Perry. “[We] started drilling mid-January, and since then, we have reported some really spectacular results on our discovery there. Hurricane is shaping up to be a significant uranium deposit.”
Perry believes uranium will perform well over the rest of the year, which is advantageous for IsoEnergy.
“I suppose we are the rarest of things as this market moves into a bullish phase. We are the only junior out there drilling high grade uranium mineralization.”
3. enCore Energy (TSXV:EU)
Year-to-date gain: 29.22 percent; share price C$0.16
US-focused uranium explorer and developer enCore Energy has a dozen ISR and conventional energy assets in New Mexico, Utah, Arizona and Wyoming. Despite a slight dip in mid-March, enCore shares have performed well over the first quarter of the calendar year.
The company has not posted any news since early January, when it announced the resignation of Paul Goranson from its board of directors.
4. Purepoint Uranium Group (TSXV:PTU)
Year-to-date gain: 28.62 percent; share price: C$0.09
Uranium explorer Purepoint has 10 ongoing projects in Saskatchewan’s Athabasca Basin, where the company has operated since 2002. Two of the company’s projects are joint ventures with uranium majors Cameco (TSX:CCO) and Orano Resources.
The company has not posted any announcements since releasing its first quarter corporate presentation. The overview of Purepoint’s ongoing projects earmarks C$630,000 for a Hook Lake drill program. Hook Lake is one of the uranium explorer’s joint venture projects with Cameco and Orano.
Purepoint’s shares fluctuated from C$0.07 to C$0.09 over the Q1 period.
5. Energy Fuels (TSX:EFR)
Year-to-date gain: 24.85 percent; share price C$4.83
US-focused uranium producer Energy Fuels has had a busy start to 2019. In late 2018, the company restarted vanadium production at its wholly owned White Mesa mill, in addition to its uranium mining.
INN spoke with President and CEO Mark Chalmers at PDAC about Energy Fuels’ vanadium restart.
“We are diversified. We produce uranium and vanadium, which is unique, because nobody else out there does that,” he said. “Vanadium is secondary to uranium production for us, but it’s becoming an increasing focus for us, particularly with the interest in renewable energy storage devices like vanadium flow batteries.”
Energy Fuels also played a key role in helping to initiate the current US Section 232 investigation into uranium, and has spent time in Washington speaking with officials. Currently, Energy Fuels and the sector are awaiting the results of the investigation due out sometime this quarter.
Company shares dropped to their lowest point this year on March 12, when they sunk to C$3.56. Since then Energy Fuels has steadily trended higher week after week.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Energy Fuels and ISO Energy are clients of the Investing News Network. This article is not paid-for content.
The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.