To many people, Uranium is a largely unknown element with many interesting properties. This silver metal, heavy and filled with energy, has the potential to become a vital part of our future.
Uranium is also a radioactive metal and is highly valued for its unique nuclear properties.
Nuclear power is a fairly misunderstood energy source. It is clean energy with zero emissions, reliable, cost-effective, and can provide vast amounts of energy compared to other renewable sources.
Currently, Uranium’s uses are to provide fuel for nuclear power plants and reactors and some nuclear-powered machinery like submarines and naval ships.
The price of Uranium surged in 2022, and many expect its stocks to continue to follow suit. A rise in demand for nuclear power has caused the price to skyrocket. Supply is relatively low, especially given that Russia is one of the leading exporters of Uranium. Many countries have imposed economic sanctions against Russia, and many believe Canadian businesses will take over.
This article will cover the 7 best Uranium Stocks in Canada for 2024.
What are Uranium Stocks?
Uranium stocks follow the companies that mine and produce the metal. It is mined from open pits or underground deposits and separated from the extracted ore.
The price of Uranium has risen for the past two years and is trading at highs that have not been seen in more than a decade.
Canada is one of the global leaders in Uranium production and currently has the largest number of Uranium mines in the world.
In 2023, the world leaders in Uranium by volume are Kazhakstan, Australia, Namibia, and Canada in fourth place.
Top Uranium Stocks to Buy in Canada
Cameco Corp (TSE:CCO)
Cameco Corp is the world’s largest publicly traded Uranium company based out of Saskatoon, Saskatchewan. The stock is dually listed on the Toronto Stock Exchange (CCO) and the New York Stock Exchange (CCJ).
The company operates multiple tier-one, low-cost Uranium mining projects across Canada and has a joint Venture with Kazakhstan as well.
It has guaranteed contracts for over 20 million pounds of Uranium delivered annually for the next five years. This provides strong cash flow, which allows Cameco to pay out a 0.35% annualized dividend yield to its shareholders.
Cameco is also involved in the exploration and manufacturing of Uranium, which means the company is integrated into the entire Uranium production cycle.
Fission Uranium Corp (TSE:FCU)
Fission Uranium Corp is a Canadian company headquartered in Kelowna, BC but operates primarily in the Athabasca Basin in Saskatchewan.
The company produces some of the highest quality Uranium in the world at 10-20 times the global average grade.
Its largest shareholder is China General Nuclear Power, a Chinese state-owned company that owns and operates six nuclear reactors in China. China General Nuclear Power owns about 13.5% of Fission Uranium Corp as of 2023.
Fission Uranium Corps’ Triple R Deposit is open in all directions and has the potential to become one of the world’s largest Uranium mines.
Baselode Energy Corp (CVE: FIND)
Baselode Energy Corp is a Toronto-based company that was established in 2018. It operates primarily out of the Athabasca Basin in Saskatchewan.
Its Ackio project is a high-grade Uranium discovery with traces of the mineral as shallow as 25 meters from the surface.
The company has three other significant projects in the Athabasca Basin: the Hook, the Shadow, and the Catharsis projects.
NexGen Energy Ltd (TSE:NXE)
NexGen Energy is yet another Vancouver-based Uranium mining company that operates out of the Athabasca basin in Saskatchewan.
The company estimates that from the nuclear power it helps to generate, it eliminates the equivalent of carbon dioxide from 70,000,000 cars per year. This is the true power of nuclear energy.
Its Rook 1 project is the single largest development-stage Uranium project in Canada right now.
After completing its current projects, NexGen anticipates it will be a top-15 Uranium mining company worldwide.
Uranium Royalty Corp (CVE:URC)
As its name suggests, Uranium Royalty Corp is a Vancouver-based Uranium Royalty company. It claims that it is the ‘first and only pure play Uranium royalty company.’
The stock is dual-listed on the Canadian Venture Exchange and the US-domiciled NASDAQ Exchange under the ticker symbol UROY.
Uranium Royalty invests in Uranium through several different avenues. These include investing directly in Uranium mining sites, owning physical Uranium, and equity in various Uranium companies.
It has partnered with some of the largest companies in the mining industry, including RioTinto, Cameco, UEC Uranium Energy Corp, and Orano.
Denison Mines Corp (TSE:DML)
Denison Mines is a Toronto-based Uranium exploration, development, and production company. Its stock is dual-listed on the Toronto Stock Exchange (DML) and the NYSEAMERICAN exchange (DNN).
The company owns multiple high-grade Uranium deposits with 19 prospective claims over 11,720 hectares of land. In all, Denison has about 300,000 hectares of exploration ground under its control.
Denison is yet another company that operates in the Uranium-rich Athabasca Basin in Saskatchewan.
It holds a diversified portfolio of investments as well, including 2.5 million lbs of physical Uranium and over $19 million in Uranium equities.
Mega Uranium Ltd (TSE: MGA)
Mega Uranium is a diversified mining and investment company that has been in operation since 2004.
It owns equity interests in junior and medium-sized exploration and development companies. Mega Uranium also operates its own Uranium discovery operations in both Canada and Australia.
The company’s investments are in several other brands on this list, including NexGen Energy, Toro Energy, Uranium Royalty Corp, Consolidated Uranium, and Labrador Uranium.
How To Buy Canadian Uranium Stocks in 2024
Canadian investors looking to invest in Uranium stocks have plenty of options. Check out my three favourite Canadian discount brokerages if you want to save on trading fees.
Questrade
The largest discount brokerage in Canada, Questrade offers investors the ability to buy stocks, ETFs, mutual funds, and even options.
Trading Uranium stocks on Questrade is cheaper than with the big banks. Buying stocks can be as cheap as $0.01 per share.
Questrade
Trade stocks, ETFs, options, FX, bonds, CFDs, mutual funds, etc.
Get $50 trade credit with $1,000 funding
Low and competitive trading fees
No quarterly inactivity fees
Access to advanced tools and trading data
Top platform for advanced traders
Transfer fees waived
Qtrade
Qtrade is a Vancouver-based discount brokerage that offers stock trading for $8.75 per trade or as low as $6.95 for those that qualify as active investors.
Canadian investors can enjoy trading stocks, ETFs, mutual funds, and options with the Qtrade platform.
Qtrade
Up to $150 sign-up bonus
Trade stocks, ETFs, options, bonds, etc.
Excellent platform for newbies and seasoned investors
Competitive trading fees
Excellent customer service
Wealthsimple Trade
Wealthsimple is a popular financial platform owned by the Power Corporation of Canada.
Its Wealthsimple Trade division is best known for its commission-free trading for stocks and ETFs, i.e. you can buy these assets while paying no trading fees.
Wealthsimple Trade
Trade stocks, ETFs, and options
Excellent trading platform for beginners
Deposit $150+ to get a $25 cash bonus
Transfer fees waived up to $150
Are Uranium Stocks a Good Investment?
As with any industry, there are pros and cons to investing in Canadian Uranium stocks.
Uranium is a commodity, so the profitability and success of Uranium-based companies will always depend on the price of Uranium itself.
That said, Uranium is widely acknowledged as one of the best forms of renewable energy in the world. Nuclear power plants and reactors can create hundreds of times as much energy as the largest wind farms.
As the world moves towards a future of renewable energies and reducing carbon emissions, Nuclear energy looks to be the cleanest option.
Many countries around the world are making major investments in Nuclear power infrastructure. This is extremely bullish for Canadian Uranium stocks.
At the end of the day, always research the investments you are considering. This article is not meant to be financial advice but rather to provide a foundation for investing in Uranium stocks.
Downsides of Investing in Uranium Stocks
Uranium is more challenging than other mined commodities like gold or lithium. Given that it is radioactive, companies need special regulatory approvals to explore and produce the metal.
While it is widely seen as the best form of clean energy, there is still a stigma about nuclear reactors being unsafe, which can cause public perception to still be negative.
Not all Uranium stocks pay dividends. In fact, most don’t. Uranium stocks are primed for future growth, but don’t expect to make any additional cash flow as you would from gold or oil stocks.
Is there a Uranium ETF?
Yes. There are two main ETFs that primarily hold Uranium-based stocks. These are the Global X Uranium ETF (URA) and the Sprott Uranium Miners ETF (URNM).
Both ETFs trade on the US-domiciled NYSEARCA exchange, so Canadian investors will have to buy these ETFs in US dollars.
Conclusion
If you are bullish on the global adoption of clean energies, you might consider looking into Uranium.
Canada is one of the global leaders in Uranium production, and the Athabasca basin in Saskatchewan provides some of the world’s highest-quality Uranium.
Many Canadian Uranium companies operate in the Athabasca basin. As countries switch over to nuclear power, expect these companies to see high demand for high-quality Uranium.
Canadian investors can easily buy the best Uranium stocks in Canada on any discount brokerage. This helps to save on trading fees, which can impact your long-term gains.
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