Uranium has always been a useful element, but recently, it has soared to new heights.
In a recent newsletter, McAlinden Research Partners noted, "Uranium prices shot to a 15-year high above $80.00/lb last week. The metal that fuels zero-carbon nuclear power generation continues to enjoy a strong 2023 on the back of continually positive shifts toward nuclear energy capacity in the Western world, compounded by continual tightness on the supply side . . . Recent data from the World Nuclear Association (WNA), initially highlighted by MRP in September, indicated that demand for uranium in nuclear reactors is expected to climb by 28% through 2030 and nearly double by 2040."
Zacks.com took an interest in the rising uranium price, noting it had raised 30% this year. The article noted this increase may be due to "renewed interest in alternative sources of energy as governments around the world try to tackle climate change and reduce dependence on fossil fuels."
And according to an article by Stockhead, there has even been talk of a possible new uranium bull cycle.
Countries are also focusing harder on where their uranium is from. According to a newsletter from McAlinden Research, The Europen Union has enacted bans on Russian crude oil shipments, and The White House has previously rolled out a spate of sanctions against Rosatom subsidiaries.
The article continued, "MRP has highlighted some urgency in recent years to revive uranium mining and enrichment in North America to counter the disproportionate presence of Russia in the global nuclear and uranium trade."
All in all, it looks like all signs are pointing to uranium, and there are some Western stocks that may benefit from this ravenous demand and focus on bolstering North American uranium companies.
Cameco Corp.
Named one of four stocks to sour by News Direct, Cameco Corp. (CCO:TSX; CCJ:NYSE) was named a key player in the sector. Headquartered in Saskatoon, Saskatchewan, Cameco is the biggest publicly traded company in the uranium industry across the globe. As recently as 2015, Cameco stood as the second largest uranium extracting firm worldwide, responsible for generating approximately 18% of total global uranium output for that year, according to the company.
On November 14, The Globe and Mail noted that RBC Capital analyst Andrew Wong was optimistic about the company, giving it an "Outperform" rating and a CA$70 price target.
Stock Traders Daily also likes the company and rated it Strong in the Near, Mid, and Longterm in a November 25 newsletter.
In a recent contributor opinion, Michael Ballanger of GGM Advisory Inc. called Cameco "the godfather of the uranium trade" and told his readers his price target for the end of the year was US$52-55. Cameco Corp. has already surpassed this target.
According to Reuters, 0.39% of the company is held by management and insiders. Director Tim Gitzel has 0.10%, with 0.44 million shares, and Executive Vice-President and Chief Financial Officer Grant Isaac has 0.06%, with 0.27 million.
73.98% is with institutional investors. Fidelity Management & Research Company LLC has 5.07%, with 21.99 million shares. The Vangaurd Group Inc. has 3.49%, with 15.13 million. Capital World Investors 3.29%, with 14.28 million. Capital World Investors has 3.29%, with 14.28 million. Mirae Asset Global Investments (USA) LLC has 2.89%, with 12.55 million, and T. Rowe Price Associates Inc. 2.35%, with 10.19 million. 0.01% is with strategic investors, and the rest is held by retail.
Market Watch notes that the company has a market cap of US$19.7 billion and 433.87 million shares outstanding. It trades in the 52-week range between US$21.22 and US$45.83.
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