Uranium Stocks for 2018

As we’ve covered recently here in Money Morning, uranium prices could be set for a breakout this year.

See for yourself. This is a chart of uranium futures from the past year:

uranium trading view graph

Source: tradingview.com

Australia has the world’s largest deposits of uranium, with 34% of the global total. It’s the world’s third-ranking producer, behind Kazakhstan and Canada. But this could be set to change.

Uranium mine to reopen

Australia currently operates three mines, one of which (Beverley) is a part of the Four Mile project.

As you can see below, production is up significantly from 2013–14:

recent production of uranium statistics

Source: World Nuclear Association

Limited production is due to a de facto ‘three-mine’ policy and lower uranium prices.

Crucially, however, the Honeymoon mine will reopen in 2019 — perhaps anticipating future price growth.

Below is a list of the locations and owners of the four most relevant mines:

  1. Olympic Dam (SA) — BHP
  2. Ranger (NT) — ERA subsidiary of Rio Tinto
  3. Four mile (SA) — Alliance Resources and Quasar Resources (joint venture)
  4. Honeymoon (SA) — Boss Resources

Revealed today: How Aussie investors could cash in on uranium’s next blockbuster breakout. Free report available now.

Big returns for uranium stocks

Source: marketindex.com.au

Boss Resources Ltd [ASX:BOE] is trading near its 52-week high of $.08, up from a low of $.038 in March of this year.

This represents more than a 100% return over the last six months.

Boss Resources came to the fore out of a deal with a Russian energy company called Rosatom.

Interestingly, Rosatom has inked a deal with China to help them with their new push towards nuclear energy.

China is projected to overtake the US in nuclear energy production in the coming decade.

The World Nuclear Association notes that by 2030, the Chinese will have 120–150 GWe of energy coming from nuclear.

Other stocks to keep an eye on include BHP Billiton Ltd [ASX:BHP], Energy Resources of Australia Ltd [ASX:ERA] (a subsidiary of Rio Tinto Ltd [ASX:RIO]), and Alliance Resources Ltd [ASX:AGS].

If the price of uranium continues to climb, more previously closed mines may reopen to keep up with demand.

Money Morning will keep on top of this story as it develops.

Regards,

Ryan Clarkson-Ledward,
For Money Morning

PS: The great uranium comeback: Discover how you could take advantage of the next big resource rush today. Download your free report now.


Ryan Clarkson-Ledward is one of Money Morning’s junior analysts. Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects. Ryan’s primary focus is assisting Sam Volkering with background research and insight for readers by dissecting the latest events affecting the world. Working closely with Sam, they explore the latest in small-cap and technology stocks as well as cryptocurrency opportunities. You can find Ryan’s contributing research, developments, and supporting information across several e-letters, including:


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