The Truth about Uranium – Part 1
From ugly stepchild to tomorrow’s Bitcoin?
Uranium - Tomorrow’s Bitcoin?
Imagine a world where clean energy is no longer a distant dream but a reality.
Most people think of uranium as a relic of the past.
But here’s the twist: uranium is poised to become one of the most sought-after commodities and a source for clean energy in the coming decades.
As countries scramble to meet their needs for energy, which they consider clean from a climate-change perspective, the demand for uranium is skyrocketing. It already started.
Uranium prices have risen from $25/lb in 2020 to $81/lb in 2024, and there remains much more upside potential.
Are you ready to tap into this hidden opportunity? Tomorrow’s Bitcoin? Well, maybe not quite as exciting as the original Bitcoin way back then, but based on industry research, the cumulative world demand will outstrip the cumulative uranium supply by a lot — which would result in further skyrocketing of uranium prices.
The Clock is Ticking
The clock is ticking. With global energy demands rising and a renewed focus on reducing carbon emissions, the race for uranium is heating up. Countries are investing billions in nuclear energy infrastructure, and the supply chain is under pressure.
Major producers like Kazakhstan, Canada, and Australia are ramping up their operations, but will it be enough? As geopolitical tensions shift and traditional supply routes face uncertainty, securing reliable sources of uranium is becoming critical. If you wait too long to explore this sector, you might miss out on a lucrative investment opportunity that could reshape your portfolio.
Uranium End to End – So many opportunities to make money
To invest in uranium, it’s important to understand the industry and its key players. Producing uranium for nuclear reactors involves four main steps:
Step 1: Mining
Step 2: Milling
Step 3: Conversion and Enrichment
Step 4: Fuel Fabrication
Each step of the 4-step process has investment opportunities.
Step 1 of 4 – Uranium Mining
The first step is digging uranium out of the ground. Countries like Kazakhstan, Canada, Namibia, and Australia are the main places where uranium is found. Think of it like mining for gold or silver, but here, we’re looking for uranium.
According to the World Nuclear Association, Kazakhstan is the largest producer, accounting for over 40% of global uranium production. Other significant producers include Canada, Namibia, and Australia, which together contribute to a substantial portion of the world’s uranium supply.
Given current geopolitical tensions, Kazakhstan and Namibia have a risk premium in terms of US political risks (being targeted by US sanctions). The major companies in this space are Kazatomprom, Cameco, and BHP.
Source: https://wna.origindigital.co/Information-Library/Facts-and-Figures/Uranium-production-figures
Kazatomprom
Kazatomprom is the world’s largest uranium producer and located in Kazakhstan. In recent years, it has focused on expanding its operations and securing partnerships with countries like China, where over 50% of its production is now committed. This shift towards Eastern markets reflects a strategic realignment in global uranium supply dynamics. Kazatomprom is traded primarily on the Kazakhstan Stock Exchange (KASE) under the ticker symbol KZAP.
JSC National Atomic Company Kazatomprom (KASE: KZAP)
Currency is KZT (Kazakhstani tenge)
Source: https://stockanalysis.com/quote/kase/KZAP/
Cameco
Cameco is a Canadian company. Canada is home to some of the richest uranium deposits globally, and Canadian companies like Cameco operate major mines. These mines are known for their high-grade uranium ore, making Canada a critical player in providing quality uranium to international markets. Cameco is listed on the Toronto Stock Exchange (TSE) under the ticker symbol CCO and on the New York Stock Exchange (NYSE) under the ticker symbol CCJ.
Cameco Corporation (CCJ)
Currency is USD (UD dollar)
Source: https://stockanalysis.com/stocks/ccj/
BHP Group
BHP Group is a prominent Australian mining company headquartered in Melbourne, known for being one of the largest producers of uranium globally. The company operates the Olympic Dam mine in South Australia, which is one of the largest uranium mines in Australia. BHP Group is listed on the Australian Securities Exchange (ASX) and the London Stock Exchange (LSE) with the stock ticker BHP.
Additionally, BHP trades in the form of American Depositary Receipts (ADRs) in the United States, and the ticker for these is also BHP on the New York Stock Exchange (NYSE).
BHP Group Limited (BHP)
Currency is USD (US dollar)
Source: https://stockanalysis.com/stocks/bhp/
Step 2 of 4 – Uranium Milling and Processing
Once uranium is extracted from the earth, it does not go directly to nuclear power plants. At this stage, the mined uranium is mixed with rocks. During the milling process, the uranium-containing rocks are first crushed into smaller pieces. Then chemicals are applied to separate the uranium from other elements and impurities present in the rock.
The result of this extraction process is a concentrated yellow powder known as yellowcake, specifically referred to as U3O8 (triuranium octoxide).
Yellowcake serves as an intermediate product that is easier to handle and transport than raw uranium ore.
Several companies are involved in the milling of uranium, including prominent names such as Orano, based in France, and Energy Fuels, located in the United States. Orano operates as a private entity and is not publicly traded on any stock exchange. Energy Fuels operates the White Mesa Mill in Utah, which processes both uranium and rare earth elements.
Energy Fuels
Energy Fuels Inc. (UUUU) is a leading player in the uranium mining and milling sector, proudly holding the title of the only conventional uranium producer in the United States. Headquartered in Lakewood, Colorado, the company operates several uranium mines across Colorado, Utah, and Wyoming, and boasts a state-of-the-art milling facility that processes uranium ore into yellowcake.
Since 2017, Energy Fuels has produced an impressive two-thirds of all uranium in the U.S., making it a key contributor to the country’s nuclear energy supply. Energy Fuels is listed on the New York Stock Exchange (NYSE) under the ticker symbol UUUU.
Energy Fuels Inc. (UUUU)
Currency is USD (US dollar)
Source: https://stockanalysis.com/stocks/uuuu/
This is the end of Part 1. Part 2 to follow next week!
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