Uranium was once thought of as a material that countries should steer away from. Now, uranium is being used more and companies are investing in it. With multiple funds and stocks revolving around uranium, what are the best uranium stocks to invest in?
France is one country that relies heavily on uranium. More than 75 percent of its power is derived from nuclear energy. Last week, France announced that it will be building more nuclear plants, which caused an uproar from European citizens.
How Uranium is used today
Uranium is one of the common metals that can be found in the Earth’s crust, which is a thin outer layer of the planet. It can be found in rocks on land or in the ocean. The metal is mined to harvest large amounts of it. More than 85 percent of the uranium is reportedly produced in Australia, Canada, Kazakhstan, Namibia, Niger, and Russia. Kazakhstan mines more uranium than any other country in the world.
Uranium is used to fuel nuclear energy. It's one of the key materials that power nuclear power plants around the world. Nuclear energy accounts for a tenth of the world’s energy sources that provide electricity, according to The Wall Street Journal. The uranium used to power nuclear power plants is widely considered to not be a renewable energy source.
Nuclear energy doesn't emit greenhouse gases that are harmful to the atmosphere because of its uranium fission process. However, the radioactive material that comes from nuclear energy can be extremely hazardous to people nearby.
The hazards and previous weapons used from nuclear energy caused many countries to steer away from using it. However, with energy shortages across the world and pressure to use more eco-friendly energy sources, countries have had to reintroduce uranium into their plans. Lately, countries have been relying more on materials like uranium.
Why uranium stock prices are increasing
Kazatomprom, the world’s largest uranium producer, announced on Oct. 18 that it invested a 48.5 percent stake in ANU Energy OEIC Ltd, which is a new physical uranium fund. Operated by energy company Genchi Global Limited, the fund will hold significant amounts of physical uranium. The fund went through an initial funding round. The National Investment Corporation of the National Bank of Kazakhstan also holds a 48.5 percent stake, while Gench Global Limited holds a 3 percent stake.
In its first funding round, the ANU Energy fund raised $50 million. Once the fund is operative, it’s expected to raise up to $500 million in the planned second round of funding. Sprott Inc., which is one of the largest precious metals investment firms in the world, created the Sprott Physical Uranium Trust back in July. The fund is the largest uranium fund in the world, and it's very similar to the ANU Energy fund.
Best uranium stocks to invest in
Some of the top uranium stocks include Energy Fuels Inc. (UUUU), Uranium Energy Corporation (UEC), and Ur‐Energy (URG). Energy Fuels Inc. has seen its share prices reach over $8.50 on Oct. 19, which is the highest it has been in over a month. UEC prices went through some consolidation at the beginning of October. Since then, they have increased by over 20 percent. URG has seen bullish movement as well and has increased by over 25 percent since the beginning of October.