The future is nuclear energy and there's no denying that. Nuclear energy allows us to be less dependable on energy sources that are depleting and to be more dependent on an energy source that's more reliable, powerful, and efficient.
Nuclear energy and nuclear power plants are able to continuously supply energy and are expected to last another 100 years while coal, oil, and natural gas are very limited and on the verge of extinction.
According to Nuclear Energy Institute (NEI), nuclear power plants provided 11% of the world's electricity production. Currently, there are 30 countries worldwide that operate 449 nuclear reactors for generating electricity. In addition, there are 60 nuclear plants that are under construction in 15 countries.
Nuclear power is growing. In fact, the NEI reported that 13 countries relied on nuclear energy in order to supply at least one-quarter of their total electricity.
Not to mention that nuclear energy has the lowest impact on the environment. And that's a huge selling factor since, as consumers, we've become aware of the effects that we have on the Earth, and it's a global priority to prevent further damage to our environment.
The desire for nuclear energy as a primary energy source will be increasing in the next few years as we see a growth in nuclear power production because of uranium miners and the increasing demand for nuclear reactors throughout the world.
Uranium Plays an Important Role in Nuclear Energy
In the past 60 years, uranium has become one of the world's most important energy minerals. It's a radioactive metal, and it just so happens that it's a chemical element in its purest from. Did you know that this heavy metal can be used as a source of concentrated energy? Well, it can, and it is...
According to the World Nuclear Association, production from world uranium mines supplies 90% of the requirements of power utilities. Production has been significantly expanding since 2005, and without a doubt, we can continue to see that trend for the next few years.
If you looked back a year ago at uranium, you would have seen that it was experiencing a lull in the market. But fortunately, all of that has been changing and uranium demand is waking up.
A big contribution to that change comes from America's change in its executive administration. President Donald Trump is a big fan of nuclear and an even bigger fan of bringing jobs to America. And what better way is there to do that than through building nuclear power plants?
Uranium will supply those power plants and, as more nuclear power plants get built, that means the demand for uranium to fuel those plants will significantly increase.
America isn't the only country that's looking to increase its efforts in nuclear power. Japan and China are bringing reactors back online. And China is trying to adjust its pollution problem caused mostly by its coal-fired power plants.
Morningstar analyst David Wang had this to say about uranium's forecast:
We expect global uranium demand to rise roughly 40% by 2025, a staggering amount for a commodity that saw next to zero demand growth in the past 10 years.
We know that uranium is on the path to an impressive future and will continue to be a crucial part of the world's prominent energy source. So, let's look at three uranium stocks that you should consider investing in now:
Cameco Corporation (NYSE: CCJ)
Cameco Corporation produces and sells uranium worldwide. It was founded in 1987 and is one of the biggest companies in the market today. Despite market challenges, the company was able to remain solid and in line with its uranium outlook for the year. Its uranium segment drove over 90% of the Cameco's gross profit.
Additionally, in 2016, its production totaled 27 million lb. — a 5% jump from what the company was expecting for the year.
Cameco's revenue for the first-quarter 2017 was $393 million. Cameco provides 18% of the world's production of uranium. This company has been strong in the uranium market, and it's always great news for a company when it's able to make its project production target for the year.
The company's business is built on long-term contracts that protect it from the possibility of weak prices if the uranium market continues to be lackluster and that's what makes this company a buy — in addition to its solid management that remains focused on surviving anything that the market throws at the company.
Uranium Energy Corp. (NYSE: UEC)
Uranium Energy Corp. is a uranium mining and exploration company that's advancing its exploration efforts throughout the southwestern U.S. This region has been known to be an ideal location for uranium mining. Its property acquisitions are primarily in Texas, Wyoming, New Mexico, Arizona, and Colorado.
It recently agreed to the acquisition of the fully permitted Reno Creek project that's located in Wyoming's Powder River Basin.
Uranium Energy controls one of the largest databases of uranium exploration in the country. With these databases, the company has the ability to target properties for potential acquisitions that have already shown to be significant in exploration and development for senior energy companies in the past. The company possesses a market cap of $201.73 million.
This company is a good buy because of its strong advantage in exploration and the development of uranium due to the databases that it currently has at its disposal, along with the properties that it's acquired.
UR-Energy Inc. (NYSE: URG)
UR-Energy is a junior mining company that operates the Lost Creek in-situ recovery (ISR) uranium facility in south-central Wyoming. The Lost Creek facility has 2 million lb. per year in physical design capacity.
This is a new company — it was founded in 2004. UR-Energy is a relatively small company that consists of 59 employees. And it has a market cap of $90.3 million.
Despite its size, the company has a decent presence in the uranium market, especially for being a newer company. Its portfolio includes mining sites at Lost Creek, Shirley Basin, Lost Soldier, and Lucky Mc Mine.
The company has had an average four-quarter positive earnings of 100%, which brings even more optimism to a hopeful year for both UR-Energy and the uranium market as a whole. Not to mention, it was able to bring in $14.82 million in revenue in the beginning of 2017 — a 418.5% increase from the prior year.
As uranium's demand becomes more prevalent in the next few years to accommodate the increase of new nuclear power plants, UR-Energy won't be negatively affected by the market.
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The Wealth Daily Research Team