Uranium Stocks - How to Bank Triple-Digit Gains

Uranium stocks are some of the hottest investments on the market today. And for good reason. 

Energy demand — especially carbon-free energy demand — is soaring. And renewable sources like solar and wind simply don’t have the juice to meet our fast-growing needs.

Just to give you an idea of the kind of growth we’re talking about…

McKinsey & Co. estimates that the clean energy transition could require an additional 400–800 GW of new nuclear power by 2050, accounting for up to 20% of future global electricity demand.

Meanwhile, the International Atomic Energy Agency (IAEA) says global nuclear energy capacity could increase from 390 gigawatts electric (GW) in 2021 to 873 GW by 2050. That would be more than double the current capacity of 369 GW. 

The growing role nuclear power is poised to play in the global energy landscape was further highlighted in December, when more than 20 countries signed a joint declaration to triple nuclear power capacity by 2050, which would add 740 GW of capacity. 

And on top of all that, the United States is weighing a potential ban on Russian uranium imports for fairly obvious reasons.

All of those things are bullish for uranium stocks in both the short and long term. And that’s why today, I’m going to show you how to bank triple-digit gains in the uranium sector — something I’ve done twice before.

The Best Uranium Stocks on the Market

If you’re a longtime reader, then you know I’ve been bullish on uranium for more than a decade. 

That’s largely because the Fukushima nuclear disaster in 2011 led to a lost decade for the fuel during which prices cratered, making exploration and production uneconomical. 

As a result, roughly 85% of uranium miners were wiped out as prices crashed from 2011–2020. Nevertheless, demand for uranium continued to rise, driven by soaring energy consumption and the efficiency and clean-burning nature of nuclear plants.

Indeed, nuclear power plants produce a huge amount of power at a relatively low cost. And they do so without producing carbon emissions — making them a key piece of the clean energy puzzle.

That’s why I recommended two uranium stocks to readers all the way back in November 2020. 

One was Uranium Energy Corp. (NYSE: UEC) and the other was Skyharbour Resources (OTC: SYHBF). We sold both in 2021 for gains of 258% and 311%, respectively. 

Since then, Skyharbour — an early-stage explorer and developer — has fallen back down to $0.30 per share, while UEC has continued to climb, currently trading for $6.36 per share.

Now, if I were going to buy back in today, I’d target UEC — a low-cost producer with projects in Texas, Wyoming, Colorado, New Mexico, and Arizona, as well as Canada and Paraguay. 

Those properties contain 230 million pounds of measured and indicated uranium oxide and 103 million pounds inferred. That’s up significantly from 58 million pounds measured and indicated and 45 million pounds inferred when I first recommended the stock due to a series of acquisitions in the intervening years.

Additionally, UEC produces uranium at an average cost of $34 per pound — less than half of what it sells for today ($84.75 per pound).

That means UEC is well positioned to profit from higher demand and soaring prices. And since the vast majority of its operations are based in North America, it’s a go-to supplier for American nuclear power companies looking to escape imports from Russia, Kazakhstan, and Uzbekistan.

Still, while UEC’s outlook is bright, and the stock could deliver triple-digit gains in the long term, investors will likely have to be patient. 

Indeed, uranium stocks and investments aren’t sneaking up on anyone anymore — certainly not the way they flew under the radar in 2020. As a result, investors looking for big-time gains have to get creative. 

That’s why I think the most compelling profit opportunity in uranium stocks currently lies in high-assay low-enriched uranium (HALEU). 

HALEU is essentially a more potent form of uranium-235, the main fissile isotope that produces energy. It provides more power at a lower volume.

Whereas traditional uranium is enriched up to 5%, HALEU is enriched up to 20%. As such, a single pellet creates as much energy as 1 ton of coal, 149 gallons of oil, or 17,000 cubic feet of natural gas.

This is obviously key because it makes nuclear reactors even more efficient than they already were. However, it’s also a huge leap forward because it means smaller amounts of fuel can be used to power smaller reactors that can be deployed more easily. 

And as it happens, there’s only one company in America that can produce HALEU.

It’s already booking deals and the stock is steadily moving higher as investors catch on. 

The good news, though, is that it’s not too late to get in on it. Yes, savvy investors are beginning to catch on. But generally speaking, the public is completely unaware of this entire situation.

They have no idea what HALEU is. They have no idea that the entire nuclear energy sector is in the midst of a revolution in terms of size and scale. And they have no idea that there’s a company just sitting there waiting to reap all of the profits. 

So if you really want to bank triple-digit gains on uranium, you should check out our full report here.

Fight on,

Jason Simpkins

Simpkins is the founder and editor of Secret Stock Files, an investment service that focuses on companies with assets — tangible resources and products that can hold and appreciate in value. He covers mining companies, energy companies, defense contractors, dividend payers, commodities, staples, legacies and more…

In 2023 he joined The Wealth Advisory team as a defense market analyst where he reviews and recommends new military and government opportunities that come across his radar, especially those that spin-off healthy, growing income streams. For more on Jason, check out his editor’s page.

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