Are you interested in investing in Uranium Stocks? The uranium sector on the Australian Securities Exchange (ASX) has been growing at an incredible rate over the last several years, and this upward trend will likely continue in the years to come.
Analysts predict that the top 11 companies on this list will grow by an average of 13% per year based on current market conditions and expected developments in the uranium sector.
The global demand for uranium has steadily risen over the past decade as countries, including China and Russia, develop nuclear power capabilities.
Most of the world’s known uranium deposits are located in Australia, one of the few countries currently extracting, processing, and exporting valuable minerals on an industrial scale. This makes it an attractive option for long-term investors looking to benefit from what is projected to be an ongoing rise in demand and prices.
If you’re looking to invest in one of Australia’s best uranium stocks, here are 11 candidates to watch out for in 2023
What are the Best ASX Uranium Stocks to Buy in 2023?
First, we should point out that uranium stocks are just like any other commodity stock —they go through the highs and lows of their underlying commodity.
Despite being extremely efficient and cost-effective, uranium miners will always depend heavily on the broader uranium market and the prevailing uranium price.
Now, I will give you a list of the ASX stocks in the uranium sector.
Here is a quick view of the top 11 uranium stocks in the Australian stock market to invest in in 2023.
|Name of the Stocks||ASX Code||Market Cap||1 Year Return|
|Energy Resources of Australia||ERA||$756.73 million||-48.1%|
|Boss Resources||BOE||$835.61 million||-10.23%|
|Paladin Energy||PDN||$2.29 billion||-19.79%|
|Deep Yellow||DYL||$534.03 million||-31.78%|
|Bannerman Resources||BMN||$285.77 million||-41.23%|
|Lotus Resources||LOT||$298.60 million||-29.69%|
|Peninsula Energy||PEN||$164.78 million||-36.54%|
|Berkeley Energia||BKY||$124.82 million||+9.8%|
|Alligator Energy||AGE||$151.95 million||-37.84%|
|Elevate Uranium||EL8||$121.2 million||-21.30%|
|Aura Energy||AEE||$132.97 million||+4.0%|
1. Energy Resources of Australia [ASX:ERA]
Two of the world’s biggest uranium producers are in Australia. The Energy Resources of Australia is the country’s biggest uranium mine operator.
A little over 86% of the shares are owned by a giant mining corporation, Rio Tinto.
ERA has been a uranium producer for more than 35 years, with the Northern Territory’s Ranger uranium mine the only Australian site that produces more than 130,000 tonnes of uranium oxide each year.
But that does not last forever.
According to the Ranger Settlement Agreement, ERA must stop processing uranium ore by 2021 and finish all decommissioning and rehabilitation by 2026.
It was estimated by ERA in April of 2022 that the total expenditure needed to complete the restoration of Ranger was $1.6-2.2 billion.
Jabiluka mineral lease 22km north of Ranger also belongs to ERA.
Despite this, this project is a long-term concern that the company will only address with Mirarr’s approval.
As a result, the cost of rehabilitation and ceasing production has placed a financial burden on ERA.
2. Boss Resources [ASX:BOE]
In South Australia, the Honeymoon project is licensed and permitted to produce, store and export uranium. As a result of its strategically designed processing facility, the company’s project has a minimal environmental footprint while also maintaining the land’s Heritage and Native Title mining agreements.
Boss Energy has grown its worldwide JORC resource from 16.6 million pounds to 71.6 million pounds since it acquired Honeymoon in December 2015.
BOSS announced in July 2022 that construction and development for Honeymoon would be accelerated. Production will begin in December 2023.
According to a BOE feasibility study, the Honeymoon project is ‘economically robust’:
The Honeymoon has an IRR of 47% for US$60/lb U308; with a nameplate capacity of 2.45Mlb U308 per annum at an AISC of US$25.60 over the Life of Mine.
Honeymoon is technically robust; a near mine satellite deposit could extend the mine life beyond its initial 11 years.
3. Paladin Energy [ASX:PDN]
Paladine Energy is an Australian energy company whose primary goal is to be an efficient energy provider for the future. It also specializes in uranium mining.
It has only one mine currently: the Langer Heinrich uranium mine in Namibia. The company also has an exploration arm with branches in Canada and Australia.
Paladin Energy has the highest capitalization on the ASX for all uranium stocks. Still, it has also faced considerable hurdles since the post-2011 drop in prices.
The Namibia-based uranium mine owned by Paladin Energy was no longer profitable in mid-2018, leading to the decision to mothball it until prices increased.
Unfortunately, world market conditions changed after that, so Paladin was forced to start a $200 million equity raising for a mine restart.
In July 2022, the company will launch its Langer Heinrich restart project targeting commercial uranium production by CY24.
4. Deep Yellow [ASX:DYL]
As an ASX-listed company, Deep Yellow (ASX: DYL) is aiming to develop a tier-one uranium company with high production and low costs.
The company’s project portfolio comprises six projects spread across two regions: A number of its projects in Namibia are underway, including Tumas and Omahola projects and Nova and Yellow Dune joint ventures.
Mulga Rock and Alligator River are the company’s projects in Australia.
Deep Yellow, with operations primarily in Australia, is the fourth-biggest uranium explorer.
5. Bannerman Resources [ASX:BMN]
Based in Perth, Australia, Bannerman Energy is a uranium development company specializing in uranium mining in Namibia.
The mine project is located on one of the world’s largest uranium deposits in Namibia, one of the most prominent producers of uranium, with an anticipated mine life of 15 years or more.
This past August, Bannerman Energy submitted the Etango-8 Mining License to the Namibian Ministry of Mines and Energy. The company is obtaining a mining license from Namibia’s government. The Etango mine’s definitive feasibility study is set to be completed in December 2022.
The fifth-largest uranium stock is Bannerman Resources. This company holds 95% ownership of the Etango project.
This is yet another Namibian destination and one of great note. It is home to the world’s most enormous untapped uranium deposits and can be found in the Erongo region.
Other uranium mines are present, such as those owned by China General Nuclear Power, Heinrich, operated by Paladin Energy, and the Rio Tinto project, Rössing.
6. Lotus Resources (ASX:LOT)
Its key asset is a 65% interest in the Kayelekera Uranium Project in northern Malawi. Lotus Resources Limited is an Australian-based mineral exploration and development company.
The Kayelekera Uranium Project (Kayelekera) is a relatively large 157km2 tenement package with excellent exploration potential.
It is home to a high-grade, in-situ resource with a historically operating open-pit mine, demonstrating remarkable metallurgical recoveries.
Our 35% shareholding is divided among Kayelekera Resources Pty Ltd, which has 20% shareholding, and the Government of Malawi, which has 15%.
7. Peninsula Energy (ASX:PEN)
A uranium mining company, Peninsula Energy Limited (ASX: PEN), began in-situ recovery operations at its Lance Projects in Wyoming, USA, in December 2015.
The Peninsula projects have undertaken a transformation initiative to change from the current alkaline ore (low pH) to a low-pH ISR project to align the performance and costs with leading global operations.
The company reported earnings results for its full year ended June 30, 2022. The year’s sales grew from USD 9.78 million to USD 18.3 million.
The company lost USD 4.64 million compared to USD 1.43 million last year and USD 0.0046 per share from continuing operations.
The diluted loss per share from continuing operations was USD 0.0046, compared to USD 0.0015 a year ago.
The basic loss per share was USD 0.0047. There was a diluted USD 0.0047 loss per share compared to USD 0.0016 a year ago.
8. Berkeley Energia (ASX:BKY)
Berkeley Energy is an ASX-listed clean energy company whose primary focus is its Salamanca uranium project in Spain.
The asset is a few hours outside Madrid and is in the historical mining area.
The Salamanca project can produce 4.4 million pounds of uranium per year. It holds a net present value of $US531.9 million.
As seen in the company’s March quarterly report, in 2021, Berkeley Energia’s investment in environmental protection rose by about 55%. They also reduced energy usage by 29%, namely fuel and electricity.
9. Alligator Energy (ASX:AGE)
The company’s major uranium projects are located in Australia.
There are three exploratory projects in operation by Alligator Energy – Samphire, Big Lake, and Alligator Rivers.
Alligator Energy has partnered with commodity trader Traxys to provide uranium marketing services for future uranium production.
Its Big Lake uranium project was expanded by 92 percent to 10,802 square kilometers in May.
As a result of our 92% increase in the project tenure last month, we plan to conduct a scoping study at Samphire in Q3 and expand exploration at Big Lake in Q4.
10. Elevate Uranium (ASX:EL8)
As an energy metals explorer and developer, Elevate Uranium (ASX: EL8) has significant deposits in Namibia and Australia and uses its patented U-grade process to explore these regions.
The process is owned by Elevate and describes itself as a “beneficiation process for upgrading surficial uranium ores.”
According to their most recent quarterly report, Elevate announced an initial JORC resource estimate is in progress for their Koppies project in Namibia and looking for additional drilling targets.
At its ‘Marenica’ project, Elevate Uranium (ASX: EL8) has an existing 61Mlb U3O8 resource and is the most extensive exploration tenement holder in Namibia.
11. Aura Energy (ASX:AEE)
The Australian Company Aura Energy has extensive polymetallic and uranium resources in Africa and Europe.
In addition to acquiring new projects in Sweden and Mauritania, the Company has become very active in developing polymetallic and uranium resources.
Now that Aura has been committed to Mauritania’s Tiris Uranium Project, a significant uranium find, the Company will announce in August 2021 that it has upgraded its JORC Resource by 10%, or 5.0 million pounds U3O8, bringing the total JORC Resource to 56 million pounds (using a 100 ppm upper cut-off grade of U3O8).
An evolving world of uranium stocks
Though fossil fuels will be used up by the year 2060, some tough decisions will soon have to be made about the future of energy.
According to the United States International Energy Agency, energy consumption worldwide has tripled between 1980 and 2018, and electricity consumption is rising much faster than renewable energy production.
In the wake of the COP 26 Climate Change Summit, government and corporate entities aim to go net zero within the next few decades.
In August, the Intergovernmental Panel on Climate Change published a report that concluded that human activity is partially responsible for recent environmental disasters, including the European flooding in July of last year and the US’s Hurricane Ida.
It may not happen tomorrow, but fossil fuels will one day go out of use, and so will nuclear energy. Unlike solar or wind, nuclear power provides consistent power – already accounting for 10% of the global energy supply.
For the British, it’s 20%. And Rolls Royce, the world-renowned car maker, is working to develop small modular reactors cheaper than those retiring in 2026.
Even China, responsible for 36% of the world’s greenhouse emissions, is planning to switch to clean energy. In 15 years, it wants to construct 150 new nuclear reactors, which are only being used worldwide.
What is uranium?
Uranium is a highly dense, heavy metal primarily used as fuel in nuclear reactors.
It is also used to construct nuclear weapons.
It takes about one kilo of uranium to produce about 20 terajoules of energy—that’s the same as 1,500 tons of coal.
There is more uranium in Australia than in any other country, and its mines account for a third of the total.
In production, we rank just behind Canada and Kazakhstan. Still, all of our show is exported because we are currently too busy generating nuclear power.
Beyond nuclear power, uranium has many uses – in medical diagnostics, transportation, aerospace, and ecology.
What are the common uses of uranium?
Before the Second World War, society was not entirely familiar with uranium.
The element has been used for several purposes, usually basic tasks like adding color to ceramics.
Now, uranium is still valuable for both (peaceful) uses: fuel in nuclear power plants to generate electricity and for manufacturing medical isotopes.
Uranium also has a bad reputation because of its association with nuclear bombs.
Stocks of uranium are rising on the ASX due to demand
Unpredictability surrounding supply right now drives the demand.
After Russia invaded Ukraine and the realization of the importance of Russian energy in US and European lives, energy security became more and more pressing an issue.
About 35% of global uranium enrichment is Russian, with the US importing around 16-17% of the uranium.
Moreover, 40% of the world’s uranium comes from Kazakhstan, primarily shipped out of Russian ports.
Thus, uranium producers worldwide are waking up, trying to revive old plans and get new ones going.
According to the International Atomic Energy Agency, four hundred fifty nuclear power plants are active globally, with 55 more currently under construction.
Miners of uranium in Australia
Nearly one-third of the world’s uranium deposits are in Australia.
In Canada and Kazakhstan, Cameco operates the world’s largest uranium deposit and is the world’s largest producer.
The Denison Mines Company is a uranium exploration and development company in Canada.
Our analysts research the ASX-listed companies in the uranium industry that have uranium resources and mineral exploration.
Who is Australia’s largest uranium miner?
Owned by BHP and chiefly used as a copper production site, Olympic Dam in South Australia has uranium as a bi-product. It is one of Australia’s largest uranium mines.
Ranger, where the uranium ore mine is, is not currently active. However, mining for uranium continues at Four Mile and will be opened for use by Boss Resources again.
Uranium production is an intensive and meticulous process. To start, uranium is filtered and dried to produce yellowcake.
Uranium typically exists in one of many different chemical forms, most commonly uranium oxide. Uranium oxide is the form in which it’s most stable.
Upward trend in the price of uranium
The spot price of uranium standard contract on the New York Mercantile Exchange in USD at 250 pounds of U308, with a long-term rise since the weapons-grade stock is being eliminated and nuclear power is rising.
COP26 in Glasgow in November 2021 brought to light the reality that nuclear power is the only way to swiftly decrease carbon emissions while conserving energy.
Since companies like Paladin Energy (PDN) could restart production on their uranium mines with relative ease, they are best poised to benefit from low-emission energy sources.
The risk with Uranium Stocks
U.S. uranium equities have declined since November 2021, generally correlated with the recent decline of major US indices.
However, the downturn for uranium stocks has been more severe than for other sectors.
Uranium companies face additional risk because new projects at current uranium prices are generally not profitable.
Since October 2021, uranium has been hovering around US$44/lb U308 at the low level of uranium’s trading range. There are many hats for sale for around US$60.
As a result of low prices, mining in the sector has slowed, with mining companies refusing to invest new money while they wait for the prices to return. Investment deferment is contributing to a long-term negative impact on the market.
Since most commodities, such as metals, don’t need government approval, they can be built quickly, at the same speed as finance, support, and construction.
The price of uranium
The recent high price of oil and gas, partly due to declining capital investment in new production and replacement capacity, and geopolitical factors are contributing to tighter markets and making oil and gas supply options more difficult.
These trends are boosting nuclear energy and uranium.
There is a deficit in the uranium minerals market due to a deficiency in supply. Still, inventories are being drawn down to cover the shortfall.
New power plants and limited inventories will lead to an inflection point in uranium prices in the 2024/25 period.
There will be a significant move in Uranium shares before then.
Investment benefits of uranium stocks
A shift to cleaner energy is taking place around the world. Efforts are being made to phase out fossil fuels.
The Russian invasion of Ukraine has only accelerated an already long-running process.
Renewables are the future of energy. The question is what the future of renewables will look like and to what extent nuclear will play a significant role.
We have already discussed how clean and safe nuclear energy is.
The demand for nuclear – and its uranium feedstock – will likely increase if the politics of nuclear can be overcome.
The International Energy Agency reported that nuclear power capacity will need to double by 2050 if global targets are to be met.
With nuclear energy becoming a significant part of the world’s clean energy mix, uranium could become one of the most valuable commodities in the world.
Uranium Stocks FAQ
Will uranium stocks rise?
It’s expected that uranium will experience rising demand in the coming years, and stocks will follow. So in 2023, the price of uranium stocks could follow a trend of increasing prices.
Is uranium a good investment in 2023?
Yes, we are bullish on uranium stocks. Let’s hope it works out well. For uranium stocks listed on the ASX, check out the best uranium stocks list in this article.
Is there a uranium ETF?
There are very few exchange-traded funds that invest in uranium. You can look at VanEck Vectors Uranium+Nuclear Energy ETF (NLR) if you’d like.
Is uranium a long term investment?
Investing in uranium is an excellent long-term investment since the demand for uranium is growing daily. It would be best to spend time in the stock market rather than timing it.
What is the best uranium stock to buy?
We have listed the 11 best uranium stocks with brief details of the stocks in this article. You can check them out and do your research before investing.
Is uranium a good stock to buy?
Investing in uranium stocks is a great way to diversify your portfolio and ensure you have a reliable and sustainable energy source for the future. The demand for uranium is predicted to increase dramatically over the next few years, so now is an excellent time to get into uranium stocks.
How to buy uranium stock?
In Australia, uranium stocks are traded on the Australian Securities Exchange (ASX). The primary uranium stocks worth watching now are Energy Resources of Australia Limited (ERA), Sino Uranium Resources Limited, and Arafura Resources Limited. To buy uranium stock, you must have a brokerage account with a brokerage firm.
Should I invest in uranium stocks?
Uranium stocks are not for the faint of heart. With uranium prices hovering around $50 a pound and no sign that they’re about to rise any time soon, investing in uranium stocks may seem like a risky proposition. However, there are some promising stocks worth keeping an eye on.
When will uranium stocks rise?
David Talbot of Red Cloud Securities expects uranium prices to rise in the coming year. However, analysts’ forecasts can be wrong. Always do your research before investing.
Escalating commodity prices and rampant inflation have led to a watershed moment for the global economy. Many countries are experiencing high inflation, levels not seen for years.
And the state of the economy, not to mention the invasion of Ukraine, is one of the main reasons for our increased inflation. The world needs an energy solution.
The global demand for fossil fuels is slowly diminishing as the world works on cleaner and more self-sufficient energy sources.
It’s more necessary now than ever before to think not only about energy conservation as an ecological issue but also in the political context.
Nuclear power is one potential part of the world’s future energy supply.
The future of uranium mining is bright, but make sure you do your research before investing. This is by no means an exhaustive list, but it should help get your research started.
Remember that not all uranium stocks are created equal! Make sure you consider quality, company track records, and other factors when deciding which stocks to buy. That way, you can be confident in your investment for years.
Disclaimer – Predictions are dependent solely on past data and research. The actual performance of the stock market will vary as a result of both foreseen and unforeseen reasons. To protect your finances, we recommend that you perform some of your own research before investing in the stock market.