While the Dow, S&P 500, and Nasdaq opened the week down after a good run the week before, key uranium stocks were significantly higher.
Reports from Russian news agency TASS have suggested Russia is considering a ban on uranium from the United States as a response to U.S. sanctions following the invasion of Ukraine. The uranium sector has been rising since Russia invaded Ukraine in late February.
Leading Uranium stocks as of Monday (03/21/22):
Uranium Energy Corp. (NYSE: UEC): 5.04 + .46 (up 10.04%)
Cameco Corporation (NYSE: CCJ): 29.27 + 1.88 (up 6.86%)
Denison Mines Corp. (NYSE: DNN): 1.71 + .08 (up 4.91%)
Lightbridge Corporation (Nasdaq CM: LTBR): 9.78 +.43 (up 4.6%)
BHP Group Limited (NYSE: BHP): 71.64 + 2.84 (up 4.13%)
Energy Fuels Inc. (NYSE: UUUU): 10.09 +.39 (up 4.02%)
Centrus Energy Corp. (NYSE: LEU): 37.76 + 1.12 (up 3.06%)
NexGen Energy Ltd. (NYSE: NXE): 5.81 + .14 (up 2.47%)
Ur-Energy Inc. (NYSE: URG): 1.76 +.03 (up 1.73%)
Additionally, Uranium Royalty Corp. (Nasdaq CM: UROY) was down 9 cents on Monday to close at $4.64 but was up over 4% in after-hours trading.
The stock has been rising the past week, as have those listed above. The big movers peaked early in Monday’s trading session, then pulled back, closing lower than the day’s start but still higher than Friday’s prices at close.
U.S. and Russian Uranium Supply
Uranium prices may continue to surge if Russia cuts the supply of the resource used to generate nuclear energy. According to the World Nuclear Association, Russia accounts for 8% of uranium, the world’s fourth-largest supply.
The United States only produces 1% of the world’s uranium, while Russia is one of its top suppliers, along with Canada, Kazakhstan, and Australia.
In 2020, Russian imports accounted for 16% of the U.S.’s uranium, which is mainly used to fuel nuclear power plants. About 20% of U.S. electricity comes from nuclear facilities.
Outlook for Uranium Stocks
The uranium play has been somewhat volatile over the past month. Just a week ago, several uranium stocks plunged with oil and gas prices that have since rebounded. UEC, for example, fell over 13% on March 14, the day crude oil fell 6%. The uranium sector has advanced 90% since February 1.
On Monday, uranium closed just under 1% at $57.70 per pound, up 31.1% the past month and 92% for the year. The stock is now in 10-year high territory. Uranium’s all-time high was over $140 in June 2007.
If Russia follows through with banning uranium exports to the U.S., it will likely spike uranium prices higher, triggering a similar response in uranium stocks.
