Uranium prices shot to a 15-year high of above US$80 per pound last week as the metal needed for zero-carbon nuclear power to fuel our cars and gadgets now and in the future.
Uranium "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," the company said in a release.
Zacks.com took an interest, noting uranium prices have risen 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.
"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," the newsletter said.
Uranium industry veteran John Borshoff told Stockhead that "everyone has to come to grips with the hard decisions that have to be made to get new (uranium) projects on the ground."
"Is it going to be US$90/lb or US$100/lb? Let's see what happens when the utilities . . . throw away the rear vision mirrors and look forward to how they're going to get green fields projects on this planet because that's the only way we're going to meet this incredible growth in the nuclear fleet."
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.
Named one of four stocks to soar by News Direct, Cameco Corp. (CCO:TSX; CCJ:NYSE) is a key player in the sector. Headquartered in Saskatoon, Saskatchewan, it is the biggest publicly traded company in the uranium industry around the world. 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.
Streetwise Ownership Overview*
On November 14, The Globe and Mail noted that RBC Capital analyst Andrew Wong was optimistic about the company, giving the stock an Outperform rating and a CA$70 per share price target.
Stock Traders Daily also likes the company and rated it Strong in the near- and long-term 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$26.19 billion and 433.87 million shares outstanding. It trades in a 52-week range between US$28.98 and US$63.12.
Uranium Energy Corp.
Uranium Energy Corp. (UEC:NYSE AMERICAN) has established itself as the fastest-growing uranium fuel supplier for the green energy transition. As the largest diversified North American-focused uranium company, UEC is advancing the development of low-cost, environmentally-friendly in-situ recovery (ISR) mining projects in the United States, as well as high-grade conventional projects in Canada.
Streetwise Ownership Overview*
The company boasts two production-ready ISR hub and spoke platforms in South Texas and Wyoming anchored by fully licensed and operational central processing plants. UEC also holds permits for seven additional U.S. ISR uranium projects.
Beyond its mining assets, UEC has diversified uranium holdings, including one of the largest physical stockpiles of U.S.-warehoused U3O8. The company has also taken a major equity stake in Uranium Royalty Corp., the only royalty company in the sector, and a pipeline of resource-stage uranium projects.
UEC's operations are managed by industry professionals with extensive first-hand experience across key aspects of uranium exploration, development, and mining. Their specialized expertise positions the company for further growth as a leading uranium supplier.
Reuters reports that 1.79% of the company is held by management and insiders. President, CEO, and Direct Amir Adnani has the most out of this category at 1.02%, with 3.92 million shares.
55.67% is with institutional investors. BlackRock Institutional Trust Company N.A. has 6.14%, with 23.69 million shares. Mirae Asset Global Investments (USA) LLC has 5.55%, with 21.42 million. The Vanguard Group Inc. has 5.43%, with 20.95 million, and MMCAP Asset Management has 4.91%, with 18.94 million.
The rest is owned by retail.
Market Watch notes the company has a market cap of US$2.52 billion and 385.85 million shares outstanding. It trades in a 52-week range of US$2.30 and US$6.7999.
Tisdale Clean Energy Corp.
Tisdale Clean Energy Corp. (TCEC:CSE) recently announced a planned exploration program at its South Falcon East Uranium Project, Athabasca Basin, Saskatchewan.
Streetwise Ownership Overview*
The South Falcon East property is located approximately 18 kilometers outside the southeast portion of the Athabasca Basin in Canada. With a total area of around 12,234 hectares, the property sits 55 kilometers east of the Key Lake Mine. The South Falcon East project benefits from proximity to two all-season highways in the north as well as access to grid power infrastructure.
Its strategic location just outside the Athabasca Basin makes South Falcon East a promising uranium exploration target. Additionally, the nearby Key Lake Mine demonstrates the broader region's potential for significant uranium deposits. By leveraging these advantages of location and infrastructure, the South Falcon East property presents an attractive opportunity for further uranium exploration and development.
Jordan Trimble, President and CEO of Skyharbour, which has optioned up to 75% of South Falcon East to Tisdale, stated: “We are looking forward to working with the company and its management team as they advance the South Falcon East Project over the coming years with a substantial amount of exploration planned. The project is host to a near-surface uranium deposit that is open along strike and at depth, and there are numerous other highly prospective targets in the project area.”
In early October, Technical Analyst Clive Maund wrote, "Whilst it is clearly something of a 'sleeper,' in that it might take a while yet to get moving and of a speculative nature, Tisdale Clean Energy is viewed as good value here with little downside potential and a lot of upside, and with the very low number of shares in the float it won't take all that much buying to lead to significant gains."
Reuters reports no ownership information.
Market Watch notes that Tisdale has a market cap of US$2.8 million and 16.47 million shares outstanding. It trades in the 52-week range between US$0.14 and US$0.57.
Skyharbor Resources Ltd.
Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE) has amassed an extensive portfolio of uranium exploration projects in the uranium-rich Athabasca Basin region of Canada. With 24 total projects, 10 of which are drill-ready, the company controls over 1.2 million acres (over 518,000 hectares) of mineral claims.
A key asset for Skyharbour is the Moore Uranium Project, acquired from Denison Mines, a major corporate strategic shareholder of the company. The Moore project is situated near Denison's Wheeler River project and Cameco's McArthur River mine in the eastern part of the Athabasca Basin.
Moore is an advanced uranium exploration property, with high-grade uranium mineralization identified at the Maverick Zone. Previous drilling at Maverick yielded exceptional uranium intercepts, including 6.0% U3O8 over 5.9 meters and 20.8% U3O8 over 1.5 meters at a depth of 265 meters vertically.
Adjacent to the Moore Uranium Project is Skyharbour's other co-flagship, Russell Lake Uranium Project, which has been optioned from Rio Tinto. The project hosts historical high-grade drill intercepts over a large property area with robust exploration upside potential. Skyharbour has recently completed an inaugural 9,600-meter drill program with plans for an upcoming winter drill program to follow up on the success of the first program.
In August, Maund gave Skyharbour a Buy rating. Skyharbour's partner company, Tisdale Clean Energy Corp., plans to begin exploration at the South Falcon East Uranium Project, which hosts the Fraser Lakes Zone B uranium deposit. Shareholders can expect several other Skyharbour partners to be carrying out exploration programs in 2024 as well, in addition to the exploration and drilling carried out at the co-flagship Russell and Moore projects.
Jordan P. Trimble owns 1.73% of the company with 2.79 million shares, and David Cates owns 0.77% with 1.25 million shares.
The following Institutions own approx. 22% of the company. Alps Advisors, Inc. owns 6.69% with 11.4 million shares, Mirae Asset Global Investments LLC owns 4.91% with 8.36 million shares, Sprott Asset Management LP owns 3.07% with 4.96 million shares, Exchange Traded Concepts, LLC, owns 2.62% with 4.24 million shares, MMCAP Asset Management owns 2.26% with 3.66 million shares, Incrementum AG owns 1.38% with 2.35 million shares, Vident Investment Advisory, LLC, owns 0.38% with 0.61 million shares, and DWS Investment GmbH owns 0.37% with 0.60 million shares.
Skyharbour has two strategic corporate investors, with Denison Mines owning 11.4 million shares and Rio Tinto owning 3.6 million shares.
The company has over CA$4 million in the bank, with upwards of CA$10 million potentially coming in from option partner payments over the next 24 months and a burn rate of about CA$150k.
There are 170.4 million shares outstanding, with 144.2 free-float traded shares. The company has a market cap of CA$90 million. It trades in a 52-week range of CA$0.32 and CA$0.64.
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- Skyharbour Resources Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Skyharbour Resources Ltd., Cameco Corp., Tisdale Clean Energy Corp., and Uranium Energy Corp.
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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