The new year is here, and it’s time to make some serious investment decisions.
And it might be time to start considering uranium stocks. The reason is obvious: the thirst for energy is only growing, and nuclear power will remain an important part of assuaging that demand.
But why is uranium stock investing a good choice for you? Here’s a breakdown of why uranium mining is so important, and why to invest in uranium stocks.
The Basics of Uranium Mining
First, let’s take a look at some of the fundamentals of uranium mining.
As you know, the importance of uranium is tied to its usefulness as a source of energy. Uranium is extracted from the earth as a metallic, silver-white element that is very malleable.
It’s also extremely dense—uranium is, after all, the heaviest naturally occurring element, with an atomic number of 92. That also means it’s unstable, and therefore radioactive. And this is the key to its industrial use: as a fissionable material, it’s employed in nuclear reactors for the production of electricity.
Key Uses of Uranium
There are a number of reasons for the intensive mining of uranium. And not all of it is tied to its energy potential.
Here are a few of the key uses of uranium in modern industry:
- Nuclear fuel: We’ve touched on this one, but it bears repeating. Enriched uranium is the primary fuel source for fission nuclear reactors.
- Depleted uranium: Apart from its fissile properties, uranium has important material uses. Depleted uranium contains less of the fissile isotope U-235, which makes it less radioactive. Depleted uranium is used for aircraft counterweights, radiation shielding for medical therapy, and in the military as armor plating or armor-piercing rounds.
- Military: Uranium has many military applications as well, including as fuel for the nuclear reactors in ballistic missile submarines and, of course, in the ballistic nuclear missiles themselves.
Uranium is quite common, about as common as tin, tungsten, and molybdenum. It’s also present in seawater, and there are even engineering designs to extract the precious energy source from the oceans.
Still, the most common means of extracting uranium ore is to delve for it in the earth’s crust. Natural uranium-bearing minerals include pitchblende, uranophane, carnotite, uraninite, and autunite.
Top Uranium-Producing Countries
Uranium mining is concentrated in those countries with significant deposits of uranium ores. Of course, that could all change if seawater extraction methods ever become widespread, and if uranium demand justifies the expense.
In that case, coastal countries could easily become some of the top uranium producers. For now, the top producers are: Kazakhstan, Canada, Australia, Namibia, Uzbekistan, Niger, Russia, China, Ukraine, and the USA.
Over two-thirds of total uranium output is generated in the top three producers alone; Australia itself has the single largest uranium deposit, as well as nearly a third of the world’s known uranium ore reserves.
8 Great Reasons to Invest in Uranium Mining Stocks
Now, let’s take a look at some of the reasons why uranium stock investing is a good outlook for 2021.
There are a number of factors that are conspiring to make uranium investing a good bet for the coming years. The following points are just a few of the most important:
1. Government Impetus
In the world’s competitive energy situation, there’s always a reason to expect governments to be involved in driving up demand for new energy resources.
Uranium and nuclear energy, despite their negative connotations, aren’t going anywhere. So, the demand for uranium fuel is likely to remain constant.
Choosing the best uranium stocks is a good way to diversify your portfolio. As part of a group of varied mineral stocks, including rare earths, uranium stocks are a great way to pad your holdings with a proven energy stock.
3. Clean Energy
Believe it or not, nuclear power is now a very clean source of energy.
Without question, nuclear energy is the clean alternative to hydrocarbon fuel sources. Nuclear power produces only water vapor as waste, rather than the greenhouse gases that fossil fuels liberate into the atmosphere.
With the increasing hype about climate change, nuclear is the only means to generate power for energy-thirsty nations without contributing to global warming.
4. Increased Safety
Best of all, nuclear energy is now extremely safe.
Advancing technology has done away with the specter of nuclear reactor meltdowns, such as those precipitated by the disasters at Three-Mile Island, Chernobyl, and Fukushima.
Advanced “pebble-bed” reactor designs, such as that pioneered by X-energy, are said to be 100% “meltdown proof.”
5. More Attractive
Other energy sources often come with strings attached—such as dependency on Middle East suppliers for hydrocarbon fuels. With Canada and Australia among the top uranium suppliers, and the US largely self-sufficient, nuclear power is a better option.
6. Higher Electricity Prices
The price of electricity is increasing. This makes investment in nuclear power, and consequent uranium mining, a more appealing alternative. The demand for power will only increase—and so will the demand for uranium fuel.
7. Greater Demand
This takes us to our next reason: demand for energy sources is increasing yearly. As more nations become industrialized, the need for energy skyrockets—even despite the economic slowdowns triggered by the COVID-19 pandemic.
So, investing in a proven fuel source, like uranium, is always a good idea.
Advancing technology has made nuclear power generation less expensive, both in the long term and in initial outlays. So that means nuclear power plants are now competitive with coal-fired plants, which will mean further growth for uranium stocks.
Best Uranium Stocks
So, what are some good uranium mining stocks to choose? Here’s a list of top-performing uranium stocks.
- Baselode Energy: active in Canada’s Athabasca Basin.
- IsoEnergy: also working in the Athabasca Basin.
- enCore Energy: active in the US, particularly New Mexico.
- International Consolidated Energy: working in Australia and Canada.
- Forsys Metals: working in Namibia.
Invest in Uranium
The bottom line is: there are plenty of good reasons why uranium stocks should be a part of any investment portfolio. Remember, the demand for energy isn’t going away.
Nuclear power will continue to be a major part of world power generation, and that means uranium mining will only increase.