Keep an eye on uranium stocks.
On Thursday, Cameco said output from its joint venture in Kazakhstan was halted thanks to a lapse in authorization from the government.
“We are disappointed and surprised by this unexpected suspension and we will be seeking further clarification on how this transpires, as well as the potential 2025 and 2026 production and financial impacts (including on future dividends),” reported Investor’s Business Daily.
“The incident raises questions about the reliability of Kazakhstan, both as a partner for Cameco and as a uranium supplier more broadly. The implications could be significant. Kazahkstan is the world’s biggest producer, providing 43% of world supply in 2022, according to the World Nuclear Association,” they added.
With that, you may want to keep an eye on uranium stocks and ETFs such as:
NexGen Energy (SYM: NXE)
NexGen Energy, a company specializing in uranium exploration and development, is primarily focused on the Athabasca Basin. Its flagship project is the Rook I project, which includes significant discoveries such as Arrow and South Arrow.
Fueling upside, the company secure its first uranium supply contracts with multiple U.S. nuclear facilities, with the contracts totaling five million pounds of uranium. Even better, analysts at RBC Capital, Raymond James, and Scotiabank all raised their price targets on NXE. RBC Capital, for example, raised its price target to C$15 from $10 with an outperform rating.
Denison Mines (SYM: DNN)
Denison Mines is focused on uranium mining in Saskatchewan’s Athabasca Basin. Over the last few weeks, analysts at Scotiabank and National Bank raised their price targets on DNN. National Bank also has an outperform rating on the stock.
Global X Uranium ETF (SYM: URA)
With an expense ratio of 0.69%, the oversold Global X Uranium ETF (URA) is just starting to pivot higher. The ETF, which provides investors access to a broad range of companies involved in uranium mining and the production of nuclear components, including those in extraction, refining, exploration, or manufacturing of equipment for the uranium and nuclear industries, holds about 50 related uranium stocks. That includes Cameco, NexGen Energy, Uranium Energy, Paladin Energy, Denison Mines, and NuScale Power to name a few.
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