Natural uranium is to nuclear power what coal is to coal power. As the main fuel for the operation of nuclear power plants, the spring of uranium mines may come again. After being dormant for several years, international uranium prices began to show signs of recovery in 2020, and then surged by more than three times.

The uranium mining boom may be far from over. At present, the policy support for nuclear power in various countries around the world is reheating. 22 countries including the United States, Japan and South Korea have pledged to triple global nuclear energy by 2050. In addition, the global AI boom has driven huge demand for nuclear power, which will also boost uranium prices.

International uranium prices have still increased by more than 60% since mid-2023. By comparison, gold has gained 19% and silver has gained 28% over the same period.

​(Source: Bank of America, as of July 19, 2024)

In view of the growing global demand for uranium, on July 18, the well-known financial media Zerohedge believed that the price of uranium will double in the next two years and exceed the 2007 level. Bloomberg recently predicted that the asset size of uranium ETFs is expected to exceed US$10 billion by the end of 2025. That growth has been led by the Global

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Which uranium mining stocks are worth watching?

1. Denison Mining

Denison Mining (DNN.US) is a market-leading uranium exploration and development company and one of the major players in the uranium market. The company has a strong presence in Canada's Athabasca Basin (a hotspot for uranium exploration in the world, famous for having the world's highest-grade uranium deposits) and owns 95% of the Wheeler River uranium project. Data show that the Wheeler River uranium mine project is the largest undeveloped uranium mine project in the eastern Athabasca Basin.

Denison Mining's diversified interests in Saskatchewan, Canada, include a 22.5% stake in the McClean Lake Joint Venture (MLJV), which owns several uranium deposits and the McClean Lake uranium mining plant. Any meaningful new uranium discoveries at the McClean Lake mine have the potential to transform into a significant source of future uranium production and ultimately generate significant value for their owners.

In addition, Denison Mining also owns interests in the Midwest Main and Midwest A deposits, as well as significant interests in the Waterbury Lake THT and Huskie deposits. These strategic locations near the McClean Lake uranium mining complex enhance the company's operational efficiency.

Denison Mining has a strong financial position. Data show that the company's net profit in the third quarter of last year reached US$58.2 million. In the third quarter of last year alone, its physical uranium reserves appreciated by more than 30%, earning $63 million.

With the pro forma balance of working capital and investments approaching $400 million, Denison Minerals is ready to advance its ambitious goals. With its solid financial position, strategic initiatives and significant developments at the Wheeler River uranium project, Denison Mining is poised to become a strong player in the dynamic and growing uranium industry.

Denison Mining’s shares have risen nearly 54% in 2023 and are up more than 8% so far this year. Wall Street analysts have an average rating of "buy" on Denison Mining, with an average target price of $5, which represents more than 150% upside potential from the stock's current stock price.

(Source: uSMART)

2.Cameco

Canadian uranium mining giant Cameco (CCJ.US) is one of the world's largest uranium suppliers and a leading provider of uranium refining, conversion and fuel manufacturing services because of its holdings in the world's lowest-cost and highest-grade uranium mines. right.

Data show that Cameco’s two uranium mines in McArthur River and Cigar Lake in northern Saskatchewan, Canada, have laid a solid foundation for the company. Among them, the McArthur River uranium mine is the world's largest uranium mine, ranking first in the world in annual output. Cameco holds 69.8% of the uranium mine; the Cigar Lake uranium mine has approximately 17% of U3O8 grade reserves and is the world's largest , one of the highest grade uranium ores.

In November last year, Cameco completed the acquisition of Westinghouse Electric with asset management company Brookfield Renewable Partners LP. Cameco will own 49% of Westinghouse and Brookfield Renewable will own 51%. After acquiring Westinghouse, Cameco became a major player in nuclear services and entered into a strategic partnership with Brookfield Renewable.

The partnership aims to leverage Cameco's 35 years of experience in uranium mining and nuclear fuel production, as well as Brookfield Renewable's expertise in clean energy. The collaboration will provide global solutions to meet the growing demand for safe, reliable and emission-free baseload power. Cameco President and CEO Tim Gitzel expressed optimism about the prospects of the partnership and highlighted the positive momentum for nuclear energy development globally.

Cameco's stock price has risen by more than 90% in 2023 and is up nearly 10% so far this year. Wall Street analysts have an average rating of "buy" on Cameco, with an average price target of $52.06, suggesting more than 10% upside from the stock's current share price.

(Source: uSMART)