5 Top Weekly TSX Stocks: Uranium Price Rally Moves Explorers

A short-lived reversal sent the S&P/TSX Composite Index (INDEXTSI:OSPTX) below 17,500 as markets opened for the last day of 2020, but a rally later raised it back above the key threshold. 

The Canadian index has climbed roughly 3 percent since January. Despite the modest 12 month gain, the TSX has increased 56 percent from its March low of 11,228.

Gold was also on the move on Thursday (December 31), approaching the US$1,900 per ounce level. The passing of a stimulus package in the US motivated investors looking for a hedge against inflation.

In terms of stock performance, energy companies saw a broad increase in value last week. An uptick in the U3O8 spot price sent the fuel to the US$30 per pound mark, benefiting explorers and developers.

Last week’s five TSX-listed mining stocks that saw the biggest gains are as follows:

• Global Atomic (TSX:GLO)
• Questerre Energy (TSX:QEC)
• Star Diamond (TSX:DIAM)
• UEX (TSX:UEX)
• Forsys Metals (TSX:FSY)

1. Global Atomic

Uranium developer Global Atomic led the pack last week. A December 23 press release confirms its receipt of a permit for its Niger-based Dasa project, and the company has been on the rise since then.

Global Atomic shares were up 44.9 percent by last Thursday, trading for C$1.58.

2. Questerre Energy

Questerre Energy is currently engaged in the acquisition, exploration and development of oil and gas projects. The firm owns assets in Alberta, Saskatchewan, Manitoba and Quebec, as well as in Jordan.

Questerre shares edged higher last week, adding 43 percent by Thursday.

The positive movement follows an announcement regarding the expansion of a pilot hydrogen project, which coincides with the Canadian government’s unveiling of a national hydrogen strategy.

“Hydrogen is becoming more important as a transition fuel to meet governments’ net-zero targets,” explained Michael Binnion, president and CEO of Questerre.

He also commented on Canada’s initiative. “Last week, the Government of Canada announced its national hydrogen strategy,” said Binnion. “It recognizes the role of blue hydrogen, hydrogen produced from natural gas combined with carbon capture, to this strategy.”

3. Star Diamond

Star Diamond is focused on acquisition, exploration and development of mineral properties. The last days of the year were busy for the diamond company.

A Wednesday (December 30) release highlights results from the ninth bulk sample conducted at the Orion South diamond project. Another announcement from the same day reports the closing of a C$1 million private placement.

The activity sent Star Diamond’s share price 42 percent higher from Monday’s (December 28) start. Thursday saw shares trading for C$0.22.

4. UEX

Uranium explorer and developer UEX holds a portfolio of projects in Canada’s Athabasca Basin. In addition, it is engaged in the exploration of cobalt projects, also located in the province of Saskatchewan.

Shares of UEX added 30 percent to their value for the last trading week of 2020. Despite the movement, UEX has not released any recent updates.

5. Forsys Metals

Forsys Metals is a uranium developer focused on Namibia. According to the company, its Norasa uranium project contains total proven and probable reserves of 206 million tonnes grading 200 parts per million; that equates to 91 million pounds of U3O8.

Like UEX, shares of Forsys edged 30 percent higher last week, trading for C$0.30. Forsys has not released any news that would explain the value increase.

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Data for 5 Top Weekly TSX Stocks articles is retrieved each Friday at 10:30 a.m. PST using TradingView’s stock screener. Only companies with market capitalizations greater than C$50 million prior to the week’s gains are included. Companies within the non-energy minerals and energy minerals are considered.

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