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3 Uranium Stocks to Watch (Updated November 2021)
Nov. 18, 2021 02:00PM PST
What are the uranium stocks to watch in 2022? Analysts at Haywood Securities recently listed three they have on their radar right now.
Click here to read the latest uranium stocks to watch article.
Few sectors have been positively impacted by COVID-19, but uranium is one industry that received a boost from measures taken to contain the pandemic. Because of this, investors may be wondering which uranium stocks to watch.
Mine shutdowns and slowdowns at various sites across the world led to a lift in the U3O8 spot price throughout 2020 and into 2021. The launch of the Sprott Physical Uranium Trust (TSX:U.UN) and ongoing concerns over potential future uranium supply shortages sent the uranium spot price to a nine year high in late September 2021, briefly crossing the critical US$50 per pound level.
As of November 16, analysts at Trading Economics forecast uranium to trade at US$48.59 per pound by the end of Q4. Looking forward, the team estimates the energy metal to trade at US$52.33 in 12 months time.
Higher uranium prices are translating into gains for uranium stocks. Read on to learn about which uranium stocks to watch in the current price environment according to analysts at Haywood Securities. All stats were current as of November 4, 2021.
1. NexGen Energy (TSX:NXE,NYSEAMERICAN:NXE)
Current share price: C$7.40; US$5.93
The first of the uranium stocks to watch is exploration and development company NexGen Energy, a company that is focused on projects in Canada's premier uranium mining jurisdiction, Northern Saskatchewan's Athabasca Basin. Its main property in the uranium hotspot is Rook I, which hosts a number of discoveries, including Arrow and South Arrow. NexGen also holds a 51 percent interest in exploration-stage IsoEnergy (TSXV:ISO,OTCQX:ISENF).
NexGen kicked off its 2021 field and regional exploration drilling programs at the Rook 1 property in July. More recently, the company published its inaugural Sustainability Report highlighting its environmental stewardship and commitment to meaningful collaboration with the local Indigenous peoples, including community programs.
Haywood has identified upcoming potential catalysts for NexGen Energy stock, such as the results of its ongoing field programs and submission of its Environmental Impact Statement and Licensing application.
2. Denison Mines (TSX:DML,NYSEAMERICAN:DNN)
Current share price: C$2.41; US$1.93
Denison Mines is another uranium company that offers investors exposure to the Athabasca Basin. The company has a number of interests in the region, most notably its 95 percent interest in the Wheeler River project and its 22.5 percent interest in the McClean Lake uranium mill, which has a toll milling agreement for processing ore from the Cigar Lake mine.
In October, Denison shared initial results from its in-situ recovery (ISR) field test program in the Phase 1 area of the high-grade Phoenix uranium deposit on the Wheeler River property. The results will inform the permitting and preparation of a planned lixiviant test in 2022, which will allow the company to complete the feasibility study for the project in 2020.
3. Uranium Energy (NYSEAMERICAN:UEC)
Current share price: US$4.53
Haywood Securities is impressed with Uranium Energy Corp's (UEC) production-ready assets in close proximity to its South Texas Hobson central processing plant. These multiple deposits could be brought into production at a relatively low capital expenditure.
The company's fully permitted Reno Creek project is construction ready with the potential for 4 million pounds of U3O8 output per year once uranium prices increase enough to warrant a production decision.
UEC began purchasing physical uranium in March of 2021, and, as of the end of October, the company has amassed an inventory of 4.1 million pounds U3O8 of US-warehoused physical uranium.
In addition to these three uranium stocks to watch, Haywood Securities also has buy ratings for Energy Fuels (NYSEAMERICAN:UUUU,TSX:EFR) and IsoEnergy.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Energy Fuels is a client of the Investing News Network. This article is not paid-for content.
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