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4 Hot Uranium Stocks to Buy Hyped By Reddit Retail Investors

Uranium prices recently hit a nine-year high. It’s therefore not surprising that uranium stocks have surged.
Let’s first discuss the factors that have…

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This article was originally published by Investor Place

Uranium prices recently hit a nine-year high. It’s therefore not surprising that uranium stocks have surged.

Let’s first discuss the factors that have driven the so-called yellowcake higher.

Besides some improvement in fundamentals, there are two reasons for the uranium surge.

In July , RBC opined that social media activity has boosted uranium prices. According to RBC’s report, “uranium market fundamentals have improved only modestly in the past 6 months compared to the sharp rise in equity values.”

Sprott Asset Management’s aggressive buying of uranium is another reason that has boosted prices in the recent past. The Financial Times reports that Sprott holds more than 28 million pounds of uranium, which it says is enough to power France for a year.

Coming back to fundamentals, there seems to be a fear that the demand-supply gap will widen. Data from Statista indicates a potential demand of 209 million pounds of uranium concentrate by 2035. However, supply is likely to be restricted to 114 million pounds of uranium. Clearly, new assets will be needed over the next decade to fill the demand-supply gap.

It therefore seems fair to conclude that uranium might be overheated, but is likely to remain in an uptrend in the next few years.

Let’s talk about four uranium stocks that are worth considering as retail investor interest has ensured that the yellowcake remains a hot commodity.

 

Uranium Stocks to Buy: Cameco (CCJ)

CCJ Stock: Hand in long yellow glove holding a chunk of uranium materialSource: shutterstock.com/RHJPhtotoandilustration

CCJ stock is possibly the top name among uranium stocks. The stock has been in an uptrend backed by higher uranium prices. However, there seems to be more upside potential with the company having a robust asset base.

Currently, the company has the licensed capacity to produce more than 53 million pounds of uranium concentrates. Further, with 455 million pounds of proven and probable mineral reserves, the company has long-term growth and cash flow visibility.

For the second quarter, the company reported revenue of $359 million and a gross profit of $12 million. As operations scale up, it’s likely that key margins will improve. In the uranium segment, the company has guided for full-year revenue of $995 million (mid-range).

Production for the year from owned and operated properties is expected at 6 million pounds. Considering the company’s licensed capacity for production, there is ample scope for scaling up operations if uranium continues to remain in an uptrend.

From a financial perspective, Cameco Corporation reported cash and equivalents of $1.2 billion as of the second quarter. The company also has an undrawn credit facility of $1 billion. Therefore, there is ample financial flexibility to pursue aggressive exploration and production growth.

 

Energy Fuels (UUUU)

Several crystals of the rare earth metal gadolinium are on display on a clear surface.Source: LuYago / Shutterstock.com

With uranium prices trending higher, UUUU stock has is up 64% so far this year. The stock can be accumulated on corrections with the company positioning itself as a producer of rare earth element products. Besides uranium, Energy Fuels is also in the production of vanadium and thorium.

The company claims to be the largest producer of uranium in the United States. By the end of 2021, the company expects to have a total uranium inventory of 691,000 pounds. Further, the company has 1.67 million pounds of vanadium inventory.

Energy Fuels has a strong financial profile. The company has $79.4 million in cash with no debt. Therefore, there is ample headroom to pursue organic and acquisition driven growth.

In the second quarter, the company opined that “uranium prices have not risen enough to date to justify uranium production at the Company’s mines and ISR facilities.” With uranium trending higher in the recent past, it seems likely that production will be ramped up.

Further, the company is also looking for an agreement with the U.S. government to buy uranium for the proposed U.S. uranium reserves. Any such agreement can be a game changer.

 

Uranium Stocks to Buy: NexGen Energy (NXE)

Page of newspaper with words penny stocks.Source: Vitalii Vodolazskyi / Shutterstock.com

NXE stock seems like an undervalued name among uranium stocks. Even after a rally of 69% for the current year, there is more upside potential as uranium trends higher.

As an overview, NexGen Energy is a development stage company engaged in the exploration and evaluation of uranium reserves in Canada. The company believes that its Rook I Project is the largest development-stage uranium deposit in the world.

To put things into perspective, studies show that the asset can deliver average annual production of 28.8 million pounds between the first and fifth year. Further, the mine has a total life of 10.7 years. Through the life of the mine, average annual production is expected at 21.7 million pounds.

NexGen Energy currently trades at a market capitalization of $2.2 billion. The after-tax net present value of the Rook I Project is estimated at $3.47 billion. Clearly, the stock seems attractively valued.

It’s also worth noting that the NPV is based on the current uranium price. If the yellowcake remains in an uptrend, the annual after-tax net cash flow from the mine can exceed $1 billion. NXE stock is therefore worth accumulating on correction for investors bullish on uranium.

 

Denison Mines (DNN)

Mine workers pushing carts in mountainous region.Source: Audun Photoz / Shutterstock.com

Denison is another company that’s involved in uranium exploration and development. The company’s asset is likely to deliver production in 2024. For the current year, DNN stock has been among the industry out-performers. The stock has trended higher by 111%.

The company’s flagship Wheel River development project has probable reserves of 109.4 million pounds. Further, the all-in-cost is $22.82 per pound. Therefore, if uranium continues to trend higher, the project has attractive economics.

As a base case scenario, the pre-tax NPV of the project is $1.31 billion. However, if uranium price is at $65 per pound, the NPV is likely at $2.59 billion. With production still few years away, the project seems to have a NPV of over $2 billion. This is with the basic assumption that uranium price remains firm. Therefore, DNN stock looks attractive at a current market capitalization of $1.1 billion.

In terms of risks, Denison has cash and equivalents of $84.8 million. It seems likely that further equity dilution will be needed to raise funds for project development. However, considering the attractive economics of the project, the stock is worth considering on corrections.

On the date of publication, Faisal Humayun did not have (either directly or indirectly) any positions in any of the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.

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Author: Faisal Humayun

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Energy & Critical Metals

The Ethical Investor: ESG moves, lesson from the energy crisis and JP Equities’ stock tips

The Ethical Investor is Stockhead’s weekly look at ESG moves on the ASX. This week’s special guest is JP Equity … Read More
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The Ethical Investor is Stockhead’s weekly look at ESG moves on the ASX. This week’s special guest is JP Equity Partners’ director and partner, Nic Brownbill.

The world is in the grip of an ongoing global power crisis that has seen energy prices soaring by thousands of percentage points.

From China to Europe and now India, the cost of energy is surging drastically. The price of natural gas has even quadrupled in some parts of the world.

 

Source: IEA via Reuters

 

But economists are now warning this might be just the first of many power crunches the world will see as we transition into the new economy.

According to a research paper by CommBank’s analyst Vivek Dhar, there are two main root causes that led to the crisis — a strong demand recovery from the pandemic, and an acute shortage of two key power-producing fuels – natural gas and thermal coal.

As economies reopen, there is a sudden pent up demand from consumers which meant that factories were forced to switch on their production capacity at short notice. This was exacerbated by a colder than usual European autumn, as the continent potentially faces a more-freezing-than-usual winter season.

In China, the crisis mainly stemmed from an undersupply in local production of coals, according to Dhar, adding that coal supply has been hampered in China because of the government’s own environmental protection regulations.

So what can we learn from all this?

Dhar reckons that we are transitioning into the new economy too fast, too soon.

“What the recent energy crisis has shown is that the energy transition needs to be planned carefully,” Dhar wrote.

“This will mean significant investment in renewable generation, batteries, electricity grids and hydrogen.”

But he thinks the roll-out of a decarbonised grid and role of gas need to be clearly defined too.

“Under-investing in gas infrastructure relative to its role in coming years will only serve to make Europe’s energy market more vulnerable to prolonged gas shortages, and increase dependence on Russia.”

Like Europe, China’s decarbonisation ambition will need to be planned as well, Dhar said.

“If coal mines and coal power plants are closed before a renewable replacement is in place, power shortages in China could be an ongoing concern.”
 

What’s happening in Australia

Australians have chosen climate change as the top ESG priority, according to the latest survey conducted by global ESG consultant, SEC Newgate.

And more than half of the 1,000 Aussies surveyed said they were happy with the direction the government is taking on the environment.

ESG Rio
Source: Survey by SEC Newgate

 

Aussie respondents also nominated retailers Coles Group (ASX:COL) and Woolworths (ASX:WOW) as the top local companies when it came to doing well on ESG metrics.

These results should provide food for thought for PM Scott Morrison, who’s currently caught in a political wrangle with the Nationals in setting our 2050 climate goals.

The PM has told Liberal colleagues that he wants to bring a binding 2050 net zero commitment to the COP26 Summit in Glasgow next month, without having to upgrade Australia’s 2030 commitments.

Nationals Leader and also Deputy PM, Barnaby Joyce, said however that he was willing to back the 2050 targets only if funding for regional producers and farmers were made as part of the deal.
 

Special guest JP Equities’ Nic Brownbill shares his views and ESG stocks

Nic Brownbill, a partner at JP Equity, told Stockhead that decarbonisation is a mega global investment opportunity, one that JP Equity wants to be all in on.

How big is the potential for ESG investing?

“We see the whole decarbonisation theme as the next mega global investment opportunity. An estimated $41 trillion is required to decarbonise the planet. It’s going to be a bigger opportunity than the crypto market, because unlike cryptos, the carbon market is going to be mandated by governments, major asset managers and pension funds.”

Which segment of the ESG market do you see outperforming?

“Some companies will fall short in trying to make their carbon targets, so the balance will need to be met with carbon credits. I think carbon emissions will eventually be metricated, and the carbon offset market is going to be a way for major companies to offset their emissions.”

Would that investment opportunity catch on in Australia?

“I believe the Australian market hasn’t really caught on to the opportunity of this yet. But I think something will really start to emerge from the COP26 conference in November, where you’ll see a sustained mega theme starting to unfold in this country.

“I think we will start to see a complete emergence of Australian companies in the carbon space over the next few months and beyond.”

What are the ASX stocks that JP Equity likes in the carbon credit space?

One ASX stock that we’ve been watching very closely is  Fertoz (ASX:FTZ). They’re a leading North American fertiliser manufacturer that produces a unique low-emission rock phosphate product that increases crop yield by 15%.

“Importantly, it can generate significantly lower CO2 emissions in manufacturing compared with other commercial fertilisers.

“This presents a really significant opportunity because agriculture as a sector accounts for 24% of all human generated greenhouse emissions. Fertoz is one of the first movers in the carbon credit market, and since May this year has been issuing carbon offset credit certificates.

“It’s not a matter of if, but when disclosure of carbon emissions will become metricated. And as a result, Fertoz is getting some strong enquiries from other companies looking to offset their footprints by buying carbon credits.”

Any other ASX stocks you like in the ESG space?

“We’re also bullish on Mpower (ASX:MPR). The company is Australia’s leading specialist in renewable energy, battery storage and micro-grid business. It has a focus on five megawatt solar farms, and is in the process of creating an initial portfolio of 20 sites across Australia in the coming years.

“That gives them an aggregate capacity of around 100 megawatts, and an estimated value of more than $150 million. It’s now down to what the team can deliver in some of those projects to build up the portfolio.”

 

Notable ASX ESG-related news during the week

Rio Tinto (ASX:RIO)

The energy giant announced that it was targeting a 50% reduction in Scope 1 and 2 emissions by 2030, and a 15% reduction by 2025 from a 2018 baseline of 32.6Mt.

Around $7.5 billion in direct capital expenditure will be spent on decarbonising Rio Tinto’s assets from 2022 to 2030, including $0.5 billion per year from 2022 to 2024.

Strandline Resources (ASX:STA)

The company released its Sustainability Report for 2021, outlining its commitment to the United Nations Sustainable Development Goals (UNSDGs).

STA said it’s focused on managing development risks at its Coburn project in WA to safeguard workers and ensure environmental compliance.

Lithium Power (ASX:LPI)

The company has appointed global consulting firm Deloitte to ensure a robust ESG program at its Maricunga project in Chile.

Deloitte has been tasked to imbed sustainable protocols in LPI’s lithium extraction operations, and to establish ambitious standards for LPI to become a carbon neutral producer, while keeping high standards on the social aspects.

Jadar Resources (ASX:JDR)

The company also said it has completed its maiden Sustainability Plan, with strategies aligned to the UNSDGs.

 

The views, information, or opinions expressed in the interview in this article are solely those of the interviewee and do not represent the views of Stockhead.

Stockhead has not provided, endorsed or otherwise assumed responsibility for any financial product advice contained in this article.

The post The Ethical Investor: ESG moves, lesson from the energy crisis and JP Equities’ stock tips appeared first on Stockhead.




Author: Eddy Sunarto

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Energy & Critical Metals

Planning To Purchase A Home? Here’s Some Financial Advice

When deciding whether or not it makes sense to purchase a home, there are several pros and cons that you should consider before signing on the dotted line….

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The decision to purchase a home is an important one. It has both positive and negative effects on your financial situation. You can reap tax benefits, for example, but you will be making monthly mortgage payments that are probably higher than what you’re paying in rent. This article will explore the pros and cons of buying a home so that you can make the best decision for yourself!

1. Mortgage
You can deduct some of your mortgage interest and property taxes from your taxable income. Depending on how much you pay in these expenses every year, this might result in a sizable return at tax time each year! The Omaha Mortgage Guy offers financial advice regarding mortgages that you will find quite helpful. It’s important to know that a mortgage is a decision that will last for many years, so make sure you have a plan to pay it off. If you want to ensure that your loved ones will never be burdened with paying off a mortgage after you pass away, you should purchase a home and pay it off before this happens. If you don’t, then your heirs might need to make large monthly payments until the loan is paid off in full which can put quite a strain on their finances.

2. You Can Build Equity
Some people purchase real estate to have a place to live and also so that they can build equity through making monthly mortgage payments. If you already own the home, your home’s value has likely increased – this means that if you sell it, you’ll get back more money than what you paid for it! Building equity is mainly done by paying off the principal of your mortgage. When you pay off a piece of your mortgage, that money becomes yours and is no longer owed to the bank.

3. Your Home Could Decrease In Value
Just as home values can increase over time, they can decrease as well. When this happens, it’s referred to as depreciation. If you are thinking about buying a home, it might be helpful for you to create an analysis so that you have an approximation of what your home could potentially sell for in the future.

4. You Have More Flexibility In Your Living Situation
In general, homeowners are less mobile than renters because their living situation is fixed. This isn’t always true – for example, you might move out of your parent’s house when you buy a condo nearby where they live instead of moving across the state or country – but there is some truth to this statement. The downside? You won’t have the flexibility to change your living situation as frequently.

5. You Have To Spend More Money On Maintenance
If you rent, you won’t have to worry about repairs and upkeep because it is your landlord’s responsibility. If you own a home, on the other hand, there will be things that need fixing from time to time- for example, if a pipe bursts in your apartment complex, you’ll still have water! When something breaks in your residence, however, you’re responsible for fixing it or hiring someone to fix it. The amount of money that this costs over several years truly adds up!

No one wants to think about it, but eventually, you will need to make repairs or replacements to the roof or other parts of your home. These unexpected repair costs add up quickly and can put a strain on your finances if they happen frequently! Although most repairs are best left up to professionals, you can do some repairs yourself if necessary. For example, you could change the batteries in your smoke alarms or replace the batteries in your thermostat if they die. This is not only more cost-efficient, but it’s also safer than having someone else fix these things for you!

6. You Have To Pay A Security Deposit
When you rent an apartment, the landlord often charges a security deposit to make sure that you don’t damage the property while living there. If you buy a home, on the other hand, you’ll likely have to put down a deposit at your bank to get a mortgage. This is called earnest money and it typically lasts for several months after closing – if something goes wrong with your mortgage during this period, your earnest money will be used as compensation.

When deciding whether or not it makes sense to purchase a home, there are several pros and cons that you should consider before signing on the dotted line. Renting often makes more sense financially in some cases, but depending on your situation, buying might be the right choice for you!

The post Planning To Purchase A Home? Here’s Some Financial Advice appeared first on munKNEE.com.

Author: Lorimer Wilson

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Precious Metals

Consolidated Uranium, Denison and Other Miners Hitting 52-Week Highs

CI Financial Corp. (T.CIX) hit a new 52-week high of $28.19 on Thursday. CI and McCutchen Group LLC today announced an agreement under which CI will acquire…

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CI Financial Corp. (T.CIX) hit a new 52-week high of $28.19 on Thursday. CI and McCutchen Group LLC today announced an agreement under which CI will acquire McCutchen Group, an ultra-high-net-worth focused wealth management firm with $3.4 billion iU.S. n assets under management.

 

Consolidated Uranium Inc. (V.CUR) hit a new 52-week high of $3.10 on Thursday. Consolidated and Labrador Uranium Inc. have entered into an agreement Red Cloud Securities Inc. to act as lead agent and sole bookrunner on behalf of a syndicate of agents in connection with a fully marketed private placement

 

[nxtlink id="268570"]Denison Mines Corp.[/nxtlink] (T.DML) hit a new 52-week high of $2.32 on Thursday. Denison has entered into a private agreement to sell 32,500,000 common shares of [nxtlink id="269110"]GoviEx Uranium Inc.[/nxtlink], currently held by Denison for investment purposes, and 32,500,000 common share purchase warrants entitling the holder to acquire one additional common share of GoviEx owned by Denison at an exercise price of $0.80 for a term of 18 months.

 

[nxtlink id="269191"]Jazz Resources Inc.[/nxtlink] (V.JZR) hit a new 52-week high of 84 cents on Thursday. Jazz Resources reports that drilling on the bedrock portion of the Vila Nova gold project, Amapa State, Brazil has intersected veins totaling 23.09 meters grading 31.58 g/t (one ounce per tonne) at a vertical depth of 74.47 meters in Hole VN-3

 

[nxtlink id="268339"]Asante Gold Corporation[/nxtlink] (C.ASE) hit a new 52-week high of $1.38 on Thursday. No news stories available today.

 

Canadian National Railway Company (T.CNR) hit a new 52-week high of $163.91 on Thursday. No news stories available today.

 

Canadian Western Bank (T.CWB) hit a new 52-week high of $39.53 on Thursday. No news stories available today.

 

DREAM Unlimited Corp. (T.DRM) hit a new 52-week high of $30.37 on Thursday. No news stories available today.

 

[nxtlink id="268577"]Energy Fuels Inc.[/nxtlink] (T.EFR) hit a new 52-week high of $10.42 on Thursday. No news stories available today.

 

Finning International Inc. (T.FTT) hit a new 52-week high of $50.36 on Thursday. No news stories available today.

 

GFL Environmental Inc. (T.GFL) hit a new 52-week high of $13.51 on Thursday. No news stories available today.

 

NanoXplore Inc. (T.GRA) hit a new 52-week high of $7.28 on Thursday. No news stories available today.

 

Granite Real Estate Investment Trust (T.GRT.UN) hit a new 52-week high of $97.58 on Thursday. No news stories available today.

 

High Arctic Energy Services Inc. (T.HWO) hit a new 52-week high of $1.94 on Thursday. No news stories available today.

 

IGM Financial Inc. (T.IGM) hit a new 52-week high of $47.91 on Thursday. No news stories available today.

 

[nxtlink id="268619"]Josemaria Resources Inc.[/nxtlink] (T.JOSE) hit a new 52-week high of $1.44 on Thursday. No news stories available today.

 

[nxtlink id="269213"]Kiplin Metals Inc.[/nxtlink] (V.KIP) hit a new 52-week high of 98 cents on Thursday. No news stories available today.

 

Loblaw Companies Limited (T.L) hit a new 52-week high of $9.36 on Thursday. No news stories available today.

 

[nxtlink id="268626"]Laramide Resources Ltd.[/nxtlink] (T.LAM) hit a new 52-week high of $1.05 on Thursday. No news stories available today.

 

Brompton Lifeco Split Corp. Class A Shares (T.LCS) hit a new 52-week high of $6.94 on Thursday. No news stories available today.

 

Luxxfolio Holdings Inc (C.LUXX) hit a new 52-week high of $1.08 on Thursday. No news stories available today.

 

 

[nxtlink id="268339"]asante gold corporation[/nxtlink]

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