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7 Stocks to Buy if the Market Crashes in September

Stock market crashes are typically difficult conversations for most retail investors. Yet occasional declines and double-digit corrections are an inevitable…

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Stock market crashes are typically difficult conversations for most retail investors. Yet occasional declines and double-digit corrections are an inevitable part of the investing cycle. As the market continues to surge higher to lofty valuations, investors are getting worried that an imminent crash could be looming around the corner and wondering which stocks to buy if the market stumbles.

The spread of the delta variant along with new emerging variants continues to threaten the global economy, further boosting jittery speculation among investors. However, even in turbulent times, many stocks can continue to thrive. Investors should, therefore, have a game plan and keep a watch list of stocks they plan to buy if prices plunge. Today, I’ll discuss seven stocks to buy if the market crashes in September.

If we count on history as a guide, a double-digit percentage decline may be long overdue. Since 1950, the widely followed S&P 500 has seen over 30 separate crashes or corrections where the index has declined by at least 10%.

But long-term investors don’t need to be fearful of market crashes. Instead, they should embrace these sell-offs as investing opportunities. Such downturns often present lucrative investment opportunities to buy top stocks at low prices. We need to remember that every previous crash has eventually ended with a bull-market rally that took the market to new highs.

With that information, here are seven stocks to buy if the market plunges in September:

  • Bristol-Myers Squibb (NYSE:BMY)
  • CrowdStrike (NASDAQ:CRWD)
  • Green Thumb Industries (OTCMKTS:GTBIF)
  • Home Depot (NYSE:HD)
  • NextEra Energy (NYSE:NEE)
  • Salesforce.com (NYSE:CRM)
  • Trupanion (NASDAQ:TRUP)

Stocks to Buy: Bristol-Myers Squibb (BMY)

Source: Katherine Welles / Shutterstock.com

52-Week Range: $56.75 – $69.75

Dividend Yield: 3.10%

Biopharma giant Bristol-Myers Squibb offers a wide range of drugs for various therapeutic areas, such as cardiovascular, oncology and immune disorders. The company is a prominent player particularly in immuno-oncology.

Bristol-Myers Squibb released Q2 2021 results in late July. Revenue surged 16% year-over-year (YOY) to $11.7 billion. Adjusted net earnings came in at $4.3 billion, or $1.93 per share, compared to adjusted net earnings of $3.8 billion, or $1.63 per share, in the prior-year quarter. Cash and equivalents ended the period at $13.1 billion.

On the results, CEO Giovanni Caforio, M.D. said, “We delivered a strong quarter across each of our four therapeutic areas, including building momentum for our new product portfolio and Opdivo returning to growth.”

Bristol Myers acquired cancer and immunology drug developer Celgene in 2019. Celgene’s leading cancer drug, Revlimid, has boosted Bristol Myers’ annual revenue, contributing over $12 billion to the top line in 2020.

Revlimid has benefited from strong pricing power and label expansion opportunities and remains protected from the generics market until early 2026. Additionally, Eliquis has recently become the leading global oral anticoagulant drug in the market.

BMY stock offers a generous dividend yield of 3%. The share price currently hovers at $63.47 at the start of Sept. 13, up only 1.5% so far this year. Bristol Myers has a reasonable valuation, making it an attractive value stock for income investors. The forward price-to earnings (P/E) and price-to-sales (P/S) ratios stand at 7.8 and 3.2, respectively.

CrowdStrike (CRWD)

A sign with the Crowdstrike (CRWD) company logoSource: VDB Photos / Shutterstock.com

52-Week Range: $118.10 – $289.24

Sunnyvale, California-based Crowdstrike is a leading cybersecurity vendor that focuses on endpoint protection, threat intelligence and attack remediation. The company’s cloud-based architecture collects data across all its endpoint agents, analyzes the information within its cloud platform and updates customers’ security standing.

Crowdstrike issued Q2 fiscal year 2022 results in late August. Revenue increased 70% YOY to $337.7 million. Adjusted net income came in at $25.9 million, or 11 cents per diluted share, compared to $7.9 million, or 3 cents per diluted share, in the prior-year quarter. Free cash flow soared to $73.6 million, up from $32.4 million a year ago. Cash and equivalents ended the period at $1.79 billion.

Following the announcement, CEO George Kurtz remarked, “CrowdStrike delivered an outstanding second quarter with rapid subscription revenue growth and record net new ARR generated in the quarter.”

The recent surge in cyber attacks has forced businesses to boost their spending on cybersecurity. Hence, analyst point out that companies like CrowdStrike are poised for explosive growth.

For instance, CrowdStrike’s Falcon security platform is highly regarded. Based on artificial intelligence technology, Falcon is designed to become more efficient at identifying and responding to threats over time.

CrowdStrike’s cloud-based services are also thriving. Its customer retention rate has reached 98%, with subscription customers surging from 450 in the first quarter of 2017 to 11,420 four years later.

CRWD stock opened on Sept. 13 at $258.72, down 8% in the past week. It has gained 18.6% year-to-date (YTD) and 99% over the past year. Forward P/E and current P/S ratios stand at 556 and 51, respectively. The decline below $260 level and even lower has created a greater margin of safety.

Stocks to Buy: Green Thumb Industries (GTBIF)

marijuana stocks image of marijuana leaf on top of several one-hundred dollar bills, ACB stockSource: Shutterstock

52-Week Range: $11.60 – $39.11

Chicago, Illinois-based Green Thumb produces and sells medicinal and recreational cannabis through wholesale and retail channels in the U.S. The company currently has a presence in 13 states, operating more than 60 cannabis dispensaries under Rise and Essence chains.

Green Thumb announced Q2 2021 results in mid-August. Revenue rose 85% YOY to $222 million. The company generated a total net income of $22 million, or 10 cents per diluted share, compared to a net loss of $12.9 million in the prior-year quarter. Cash and equivalents ended the quarter at $359 million.

CEO Ben Kovler said, “On a year-over-year basis, we grew revenue by 85% to $222 million; more than doubled Adjusted EBITDA to $79 million and continued to deliver positive cash flow.”

Marijuana stocks constitute another avenue investors could consider during a stock market crash. During the Covid-19 pandemic, consumers treated cannabis like any traditional consumer product and continued buying pot no matter how gloomy things looked from an economic viewpoint.

Green Thumb has been growing its brand presence in a highly competitive industry. Annual sales are expected to exceed $1 billion in 2022. The company has already reached recurring profitability, as two-thirds of the company’s revenue is derived from higher-margin derivative products such as vapes, edibles and topicals.

Over the past year, the shares have soared by 82%. The stock is up 3% YTD. Shares trade at 20.6 times forward earnings and 7.4 times current sales. The decline toward $25 makes GTBIF stock more attractive.

Home Depot (HD)

a Home Depot store is seen from the outsideSource: Cassiohabib / Shutterstock.com

52-Week Range: $246.59 – $345.69

Dividend Yield: 1.99%

Home Depot is the largest home improvement specialty retailer in the world, operating almost 2,300 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the U.S., Canada, and Mexico.

The retail giant released Q2 results in mid-August. Total sales went up by  8% YOY to $41.1 billion. Net income came in at $4.8 billion, or $4.53 per diluted share, up from $4.3 billion, or $4.02 per diluted share, in the prior-year quarter. Diluted earnings per share surged 13% YOY. Cash and equivalents ended the period at $4.57 billion.

CEO Craig Menear said of the company’s staff, “As a result of their efforts, we achieved a milestone of over $40 billion in quarterly sales for the first time in Company history.”

Home Depot could be a good hedge for all economic scenarios. During bull market periods, investors have seen strong sales growth to commercial clients and contractors. However, when an imminent recession becomes an issue among investors, homeowners fuel growth through remodels and DIY projects.

While brick and mortar sales remain the primary revenue driver, Home Depot has also invested in digitalization to integrate its online and physical store experiences. This move has led to a significant surge in digital sales and helped the company successfully navigate pandemic-related market volatility.

HD stock hit an all-time-high of $345.69 in May. It currently sells slightly above $330 territory, up almost 26% YTD. Forward P/E and current P/S ratios stand at 24.15 and 2.47, respectively.

Stocks to Buy: NextEra Energy (NEE)

Nextra Energy (NEE) website on a mobile phone screenSource: madamF / Shutterstock.com

52-Week Range: $66.79 – $87.69

Dividend Yield: 1.81%

Headquartered in Florida, NextEra Energy owns and operates the regulated utility Florida Power & Light that distributes power to about five million customers in the state. Consolidated generation capacity includes natural gas, nuclear, wind and solar assets.

NextEra issued Q2 results in late July. The company reported revenue of $3.93 billion. On an adjusted basis, net earnings surged 9% to $1.40 billion, or 71 cents per share, up from $1.29 billion, or 65 cents per share, in the prior-year quarter. Cash and equivalents ended the quarter at $1.44 billion.

CEO Jim Robo remarked, “We grew adjusted earnings per share by more than 9% year-over-year, reflecting continued strong financial and operational performance across all of the businesses.”

Utility stocks are usually slow-growing businesses that rely on the predictability of demand for their services. However, what makes NextEra unique in the utility space is its focus on renewable energy. The company has become a leading name in terms of solar or wind power generation capacity. Its emphasis on renewable energy has allowed NextEra to reduce electric-generation costs and increase its growth rate to the high single digits.

While NextEra operates in a regulated industry, it does not have exposure to volatile wholesale-electricity pricing. NextEra is a highly profitable stock and an attractive pick for income investors. Rapid transition worldwide to green energy further increases its appeal as a defensive stock. NEE stock currently hovers close to $85, up nearly 10% so far this year. It trades at 31 times forward earnings and 10 times current sales. Interested readers could consider buying the dips.

Salesforce.com (CRM)

A hand with pink painted fingernails holds a Salesforce (CRM) sticker.Source: Bjorn Bakstad / Shutterstock.com

52-Week Range: $201.51 – $275.22

The Dow Jones Industrial Average (DJIA) member Salesforce provides an end-to-end solution for customer relationship management (CRM). Its Customer 360 cloud platform comprises a group of AI-powered software designed to consolidate data across sales, services, marketing and commerce. As a result brands get a complete view of each customer.

Salesforce released Q2 fiscal 2022 results in late August. Total revenue increased 23% YOY to $6.34 billion. The company reported an adjusted net income of $1.40 billion, or $1.48 diluted earnings per share, up from $1.33 billion in the prior-year quarter. Total cash, equivalents and marketable securities ended the quarter at $9.65 billion.

“With companies and governments around the world continuing to accelerate their digital transformations, we delivered our fifth phenomenal quarter in a row,” said CEO Marc Benioff.

Impressive results suggest that Salesforce’s core businesses remain insulated from the pandemic. Salesforce’s services help automate business processes, decreasing an organization’s dependence on employees. Customer demand should continue to surge as companies cut costs and streamline their businesses.

Gartner identified the company as the industry leader in the CRM space, suggesting that it can execute better than its rivals. Salesforce has a market share of almost 20%, more than its next four rivals combined. Potential short-term headwinds would offer long-term investors an opportunity to buy CRM shares at a discount.

The stock hit a record high of $275.22 in the week following its Q2 earnings report. CRM stock opened on Sept. 13 at $257. It is up 14% so far this year. The shares trade at 72.5 times forward earnings and 10.3 times current sales.

Stocks to Buy: Trupanion (TRUP)

a veterinarian holding a small white dogSource: Shutterstock

52-Week Range: $67.15 – $126.53

Seattle, Washington-based Trupanion is a specialty insurance products provider in the U.S. It sells insurance products tailor-made for pets, especially cats and dogs.

Trupanion released Q2 2021 results in early August. Total revenue surged 43% YOY to $168 million. Yet net loss stood at $9.2 million, or 23 cents per diluted share, compared to a net income of $1.4 million, or 4 cents per diluted share, in the prior-year period. Trupanion burned $5.1 million in free cash flow during the second quarter. Cash and equivalents ended the period at $124 million.

On the results, CEO Darryl Rawlings remarked, “Q2 was another great quarter with net pet growth up 60% year-over-year, led by exceptionally strong retention rates.”

The pet industry shows one of the most persistent growth trends in the U.S. Pet expenditures have seen a YOY increase over a 25-year streak. And pet parents are expected to spend almost $110 billion in 2021 for their companions, up from $97 billion in 2019.

Trupanion hit a milestone in the past quarter, exceeding 1 million enrolled pets. In fact, Trupanion has only penetrated about 1% of the U.S. pet market. If it were to reach a 25% penetration rate, analysts estimate Trupanion’s addressable market to increase nearly to $33 billion.

The leading stock in pet insurance opened on Sept. 13 at $90.36. TRUP stock is down 28% YTD. Despite the pullback in 2021, it has returned 23% over the past year. The stock currently trades 5.75 times current sales. The shares deserve your attention.

On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Tezcan Gecgil, Ph.D., has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all three levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation.

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Energy & Critical Metals

LEL reckons its Burke graphite deposit suited for lithium battery applications

Special Report: Lithium Energy’s teamed up with CSIRO for optimisation testwork for its Burke graphite project in Queensland. … Read More
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Lithium Energy’s teamed up with CSIRO for optimisation testwork for its Burke graphite project in Queensland.

The research agreement with CSIRO covers further testwork, including attempting spheronisation and purification of the natural graphite particles.

Essentially, the graphite is shaped into ‘potato-like’ structures with the objective of easier processing of Burke natural graphite flakes into electrode materials to reduce capacity losses and enhance cell efficiency.

The idea is to demonstrate to potential graphite purchasers the benefits of the natural flake graphite within the deposit.

The project will be 50% funded by the CSIRO Kick-Start Program and is expected to take four months to complete.

Lithium Energy (ASX:LEL) is confident the deposit presents an opportunity to cater to the growth in demand for graphite in lithium-ion batteries.

Encouraging electrical storage capacity

Burke has a JORC inferred mineral resource of 6.3 million tonnes at 16.0% Total Graphitic Carbon (TGC) for 1,000,000 tonnes of contained graphite – including a high-grade component of 2.3 million tonnes at 20.6% TGC.

Its high grade and low impurities make it particularly attractive for use in lithium-ion batteries.

In previous test work, Burke graphite cells had generally higher levels of capacity compared with control coin cells when repeatedly (50 times) charged and discharged over a 10-hour cycle time.

The company considered this electrical storage capacity highly encouraging and it was the driving force to undertake the further testwork required by battery manufacturers looking to acquire graphite for use in their battery manufacturing operations.

Pic: Total Graphite Content (TGC) comparison of ASX listed company graphite projects

Potential offtake partners

The company is planning to re-engage with Chinese and Japanese parties who have previously expressed a strong interest in the graphite from the Burke Project.

Lithium Energy said that companies in China are increasingly looking outside of the country for stable supplies of high-quality graphite concentrate – due to increasing environmental concerns as well as grades being typically lower in the country.

Once the latest round of testwork is complete, the company will pursue discussions with the aim of forming binding commercial off-take and development agreements.

 


 

 

This article was developed in collaboration with Lithium Energy Limited, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

 

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Energy & Critical Metals

Power Supply Shock Looms: “Global Markets Will Feel The Pinch Very Soon” Of China’s Next Crisis

Power Supply Shock Looms: "Global Markets Will Feel The Pinch Very Soon" Of China’s Next Crisis

Distracted by the ‘grandness’ of the collapse…

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Power Supply Shock Looms: "Global Markets Will Feel The Pinch Very Soon" Of China's Next Crisis

Distracted by the 'grandness' of the collapse of China's property development market, many have missed the fact that China faces a crisis that could directly hit Asia's economy just as hard as a financial collapse - a nationwide power supply shock.

After ramping up its coal-based power production earlier in the year, it appears Beijing has suddenly grown a conscience over its emissions and the 'average joe' could be about to feel the pain of that decision.

As Bloomberg reports, the crackdown on power consumption is being driven by rising demand for electricity and surging coal and gas prices as well as strict targets from Beijing to cut emissions.

It’s coming first to the country’s mammoth manufacturing industries: from aluminum smelters to textiles producers and soybean processing plants, factories are being ordered to curb activity or - in some instances - shut altogether.

"With market attention now laser-focused on Evergrande and Beijing’s unprecedented curbs on the property sector, another major supply-side shock may have been underestimated or even missed,” Nomura Holding Inc. analysts including Ting Lu warned in a note, predicting China’s economy will shrink this quarter.

As a reminder, China pollutes more than the US and all developed countries combined...

More problematic for Greta and her pals, between the years 2000 and 2020, the amount of electricity generated by burning coal increased more than four-fold in China, hitting around 4,600 terrawatt hours in the past year.

Infographic: China’s Energy Demand Sees Coal and Renewables Soar | Statista

You will find more infographics at Statista

As the scene below suggests, this is not the first time China has faced winter power demand surges (which prompted many to turn to diesel generators to plug the shortages of power from the electricity grid).

However, this year is different.

The danger is that, as Zeng Hao, chief expert at consultancy Shanxi Jinzheng Energy, warns: government policies will significantly limit the energy industry’s potential to increase production to meet the demand increase.

2021's worsening power crunch in China reflects three specific factors:

1) Extremely tight energy supply globally (that's already seen chaos engulf markets in Europe);

2) The economic rebound from COVID lockdowns that has boosted demand from households and businesses (as lower investment by miners and drillers constrains production); and

3) President Xi Jinping tries to ensure blue skies at the Winter Olympics in Beijing next February (showing the international community for the first time that he's serious about de-carbonizing the economy).

Simply put, it is the third factor - which is all of its own making - that has raised the risk of a severe shortage of coal and gas - used to heat homes and power factories - this winter; and more ominously, expectations of the need to ration power to those deemed worthy.

“The power curbs will ripple through and impact global markets,” Nomura’s Ting said.

“Very soon the global markets will feel the pinch of a shortage of supply from textiles, toys to machine parts.”

As we noted earlier in the year, China needs to shutter 600 coal plants to meet its emissions goals of net zero greenhouse emissions by 2060.

If Xi's recent actions in the interests of "common prosperity" are really about forestalling social unrest, we suspect his commitment to meeting self-imposed carbon emissions targets may quickly evaporate as the Chinese people are unlikely to stand sustained black-outs for long without upheaval.

Tyler Durden Sun, 09/26/2021 - 20:30
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Energy & Critical Metals

Which uranium producers are ready to pounce when the price is right?

The uranium price is going gangbusters, and the spot price has punched through $50/lb for first time in nine years. … Read More
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The uranium price is going gangbusters, and the spot price has punched through $50/lb for first time in nine years.

The spark for this price rise is the Sprott Physical Uranium Trust, which used a US$300 million at-the-market equity raise to buy up 28.3 million pounds of uranium in recent weeks.

That’s more than the amount of nuclear fuel required to power France for a year.

And it’s aiming to ramp its buying spree up even further, revealing plans to increase its at-the-market offer limit by US$1 billion to US$1.3 billion.


 

When will the price be right for uranium producers to restart?

Lotus Resources (ASX:LOT) managing director Keith Bowes agrees with the general  consensus that aroundUS$60/lb is the magic number that will justify new operations to start – or to dust off operations like the company’s Kayelekera project in Malawi.

“There’s a common theme with most of the developers in the last two years or so – and you’ll see that when you look their reporting, the scoping studies and feasibility studies – that the mid-60s is a realistic number for development to come back online again,” Bowes said.

“There’s obviously a little bit of flexibility around there, depending how you want to go about your contracting.

“If you could get your initial period at maybe $55 or $60 and know that’s going to grow as you go through your production protocol, that may be something that somebody would have a look at – if you can get the pounds into a contract.”

 

Spot price still has plenty of room to grow

The company doesn’t know when it will look to lock in prices just yet, especially since Bowes reckons there’s still some spot price growth to come.

“There’s been a massive rise because of Sprott coming in, but they’ve only effectively used a very small portion of the $1.3 billion available to them – they’ve probably only used $200 million at the moment,” he said.

“So, there’s still a lot of buying power to come from Sprott and I think we can expect to see the spot price increasing more over the coming months.

“And then you’ll see the term price coming up with that as well.”

The prevailing spot price would influence the starting point of discussions, but it’s just an indicator of the term contract market, where most of the action happens between uranium miners and the utilities.


 

Mothballed projects have a better chance of catching the uranium ride

Kayelekera produced 11Mlbs over five years, ceasing operations in 2014 due to sustained low uranium prices.

And projects that can be restarted quickly are better placed to catch the uranium ride at the peak of the cycle.

“If you have a look at the way the cycle is going at the moment, realistically, you’d expect to reach a peak maybe next year or the year after,” Bowes said.

“And the only company that are really in a position to catch the next cycle are those companies that have got assets that are in care and maintenance and can be brought back on relatively quickly.

“Any of the companies that have got greenfield projects, it’s a 5-to-10 year sort of timeline for them to come into production.

“And I don’t know whether they’d make the cycle this time.”

Not to mention, the cost of restarting a mine is much less than developing one – and Lotus is looking at around US$50 million to recommence production at Kayelekera.
 

Focusing on feasibility study in the meantime

While they’re waiting for the price to peak, Bowes said the company is focusing on having its feasibility study in place.

“We want to have the results from our feasibility study available so we can provide assurance to any utilities that we understand what is required to restart the asset back up again,” he said.

“Our feasibility study will be finished the middle of next year and we would expect to start serious negotiations with utilities after that.

“However, we have already started the process with North American utilities – so those in the US and in Canada – to reintroduce the Kayelekera project to them, and to introduce Lotus as a new company.”

He said because Kayelekera product has been previously sold and processed by utilities in the US and Canada, it’s known to the market – which gives the company an advantage over its peers who are starting from scratch.

But the fact remains that most stocks are years away from even thinking about production.

The current market dynamics are conducive to increased term market contracting activity. Pic: Paladin.

 

Which other uranium producers are waiting in the wings to restart?

Here are the companies like Lotus who have been doing the work quietly in the background before the uranium market exploded – and could potentially pull the trigger on production once the price is right.

 

PALADIN ENERGY (ASX:PDN)

Paladin is a former producer at the Langer Heinrich mine in Namibia which has been on care and maintenance, but – following a big $218 million cap raise earlier this year — is ready to relaunch.

Peak production was 5.6 million pounds in 2014 (2,540t) before operations were suspended due to low prices.

The company’s timetable envisages a restart of production with a modest capital outlay of around $80m once contracts with utilities have been signed.

 

VIMY RESOURCES (ASX:VMY)

Advanced uranium explorer, Vimy, wants its shovel-ready Mulga Rock project up and running to take advantage of the uranium price surge.

It raised $18.5 million this year to advance early works at Mulga Rock in WA and to continue exploration at the Alligator River project in the Northern Territory.

In August the Project Management Plan was approved, with just two WA Government departmental approvals remaining.

“Combined with renewed activity in the term uranium market, this approval augurs well for a project Final Investment Decision in the year ahead,” managing director and CEO Mike Young said.

 

BOSS ENERGY (ASX:BOE)

Boss has just appointed the key EPC contractor for the electrical, instrumentation and control system at its 2.25-million-pound Honeymoon project in South Australia.

CEO Duncan Craib said the company was advancing multiple work streams in parallel to minimise the lead time between FID and the start of production.

“We are making project preparations on several fronts to ensure we can capitalise on the rapidly turning uranium market at the moment of our choosing,” Mr Craib said.

“We are already the most advanced of all the non-producing Australian uranium projects, with a production plant and key infrastructure in place.

“By making these preparations now, we are ensuring Boss is on track to be Australia’s next uranium producer.”

In March, Boss raised $60 million to buy 1.25 million pounds of uranium on the spot market at an average price of US$30.15 per pound – which it says will provide greater flexibility for financing and off-take negotiations.

 

DEEP YELLOW (ASX:DYL)

Deep Yellow has three uranium projects in Namibia – Reptile, Nova and Yellow Dune.

A PFS was completed in early 2021 on its 3 million pound per annum Tumas project – within the Reptile tenements — and a DFS commenced March 2021.

The company raised A$42 million in July to advance feasibility studies on the Reptile project and M&A activities.

 

BANNERMAN RESOURCES (ASX:BMN)

Bannerman’s Etango-8 project — also in Namibia — has been ‘reimagined’ as smaller scale mine initially, but with the ability to ramp up production as demand improves.

In February, it raised $12 million to complete the Pre-Feasibility Study (PFS) at the Etango-8 Project, and is busy with a Definitive Feasibility Study (DFS).

The company says the Etango-8 development pathway will enable it to get into production to benefit from the current uranium cycle – whilst having the option of increasing the production rate in the future to take advantage of deepening forecasted deficits in the uranium market.

 

BERKELEY ENERGIA (ASX:BKY)

Project developer Berkeley Energia (ASX:BKY) is battling through the approvals process to build its contentious Salamanca uranium mine in Spain.

 

PENINSULA ENERGY (ASX:PEN)

This US-based company can get back into production within six months – and for just $US6 million — once a final investment decision is made.

The flagship 3 million pound per annum ‘Lance’ project, located in Wyoming, is the only US-based uranium project authorised to use the industry leading, low-cost, low pH ISR process.

In early September, the company completed a sale of 200,000 pounds of U3O8 pursuant to a long-term contract.

The uranium was sourced from the existing portfolio of binding purchase agreements and a net cash margin of US$3.8 million will be generated from the sale.

 

AURA ENERGY (ASX:AEE)

This long-suspended uranium stock has re-joined the ASX with a bang last week and is focused on the advanced ‘Tiris’ project in Mauritania, which the company calls “one of the most compelling uranium development projects in the world today”.

The company says it has executed an offtake agreement for the project, with financing discussions currently advancing.

Highlights of recent DFS include low start-up costs of $US74.8 million and a low All-In Sustaining Cost (AISC) of US$29.81/lb – well below current prices.

Vanadium by-product recovery may lower costs further, Aura says.

 

At Stockhead we tell it like it is. While Lotus Resources is a Stockhead advertiser, it did not sponsor this article.

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