Top Uranium Stocks of 2020 on the TSX and TSXV

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After spending the first two months of the year locked below US$25 per pound, the uranium spot price has begun to climb, driven by mine and project shutterings around the globe and concern that supply and demand challenges could lead to a shortage.

The U308 spot price edged higher in March as the coronavirus continued to spread, reaching US$27.40 — that marked its most significant month-over-month gain since June 2018.

The current state of uranium production remains precarious, with both of the world’s top producers drastically reducing operations in compliance with COVID-19 lockdown regulations.

Despite the current market volatility brought on by the pandemic, some miners and explorers have been able to grow their value with notable share price increases. Below the Investing News Network has listed the top uranium stocks on the TSX and TSXV by share price performance so far this year.

All year-to-date and share price information was obtained from TradingView at close of day on April 8, 2020. All companies listed had market caps above C$10 million at that time.

1. Laramide Resources (TSX:LAM)

Year-to-date gain: 43.4 percent; current share price: C$0.28

Laramide Resources owns several uranium projects in the US and Australia, including the Churchrock and Crowpoint in situ recovery projects. The firm is also permitted to advance the La Sal project in Utah and is working towards permitting at La Jara Messa in New Mexico.

In late March, Laramide received an extension to its term loan and provided a COVID-19 market update.

The company states in the release that the industry was well positioned for growth in 2020 before the pandemic, and may benefit from the market uncertainty the coronavirus has induced.

“We believe uranium equity valuations — which have fallen in line with the general decline of almost all equities in March 2020 — do not reflect the prospect that a meaningful industry recovery could finally begin in 2020,” reads the announcement.

2. Blue Sky Uranium (TSXV:BSK)

Year-to-date gain: 40 percent; current share price: C$0.14

Focused on Argentina, Blue Sky Uranium is presently developing several uranium-vanadium projects in the country’s Rio Negro province. In early March, Blue Sky announced the commencement of a reverse-circulation drill program at its Amarillo Grande project in Argentina.

The company has yet to make any further announcements regarding the drill activity. Argentina entered a nationwide lockdown on March 21, which may delay Blue Sky’s efforts.

3. IsoEnergy (TSX:ISO)

Year-to-date gain: 18.9 percent; current share price: C$0.47

Uranium explorer and developer IsoEnergy owns a portfolio of projects located in the prolific Athabasca Basin in Saskatchewan, Canada.

In a March 31 announcement, the company released additional favorable assay results from a winter drilling program on the Hurricane zone of its Larocque East property.

CEO Craig Perry also offered some commentary on the uranium market: “With the suspension of operations at several uranium mines and mills around the world including at the world’s largest mine — Cameco’s Cigar Lake — we are starting to see uranium prices in the spot market rise strongly in recent days. Should these mines stay offline for an extended period, we see further upward pressure on prices as utilities move to secure supply.”

4. Cameco (TSX:CCO)

Year-to-date gain: 10.3 percent; current share price: C$12.79.

Cameco is the leading publicly traded uranium producer and operates some the largest uranium projects in the world, including the McArthur River and Cigar Lake mines, both located in Saskatchewan.

In response to the spread of COVID-19 Cameco has put Cigar Lake on care and maintenance, news that has reverberated through the sector.

On April 7, Cameco also decided to temporarily decrease production at its joint venture with Kazatomprom in Kazakhstan. The output decline has prompted the uranium miner to reevaluate its 2020 production guidance.

In 2018, the company indefinitely shuttered McArthur River due to persistently low uranium prices.

5. Uranium Participation (TSX:U)

Year-to-date gain: 6.8 percent; current share price: C$4.36.

Unlike the miners and explorers listed above, Uranium Participation invests 85 percent of its equity offerings in purchasing uranium, then holds it to sell at a later date.

Its uranium holdings equate to more than 16.2 million pounds of U3O8 equivalent.

The company’s most recent press release, dated April 6, notes that it has made commitments to purchase 230,000 pounds of U3O8.

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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: IsoEnergy is a client of the Investing News Network. This article is not paid-for content.