Apr 18, 2022 17:14
The energy crisis made headlines in 2021, as market players saw a spike in oil prices, followed by a corresponding spike in the value of energy stocks.
The new emphasis on energy has also stimulated interest in nuclear energy equities, which are now undervalued.
With the intensification of the struggle against climate change, it is becoming more obvious that nuclear energy has the chance to play an important role in enabling a carbon-free society to function.
Nuclear energy is produced by a nuclear process, often fusion or fission. Simply said, mined and processed uranium is converted into fuel, which generates steam, generating electricity (energy). Nuclear energy can offer a constant supply of power (unlike wind energy, for example), but it is also more dependable than other alternative energy sources. It does not release greenhouse gasses, a key contributor to global warming.
Nuclear energy stocks are companies that contribute to the generation of nuclear energy via uranium. While some may mine uranium directly, others produce technology that miners and other industry companies utilize.
According to energy.gov, nuclear power generates 52% of America's clean energy and is the "most dependable energy source" in the country, according to energy.gov. Nuclear energy is becoming one of the hottest topics of discussion among environmentalists, especially as more "green" measures are implemented internationally. As a result, investing in nuclear energy equities early on can provide significant profits for investors.
In terms of the International Atomic Energy Agency (IAEA), nuclear energy is now the second biggest source of low-carbon electricity, according to the International Atomic Energy Agency (IAEA). In 2019, nuclear energy produced 10% of the world's electricity. Additionally, nuclear energy accounts for around 20% of the energy supply in the United States and 70% of energy output in France.
Nuclear power is beneficial because it emits no carbon, requires little land, and is constantly available. Other green energy sources, such as wind and solar, are intermittent, seasonal, and need costly infrastructure to move them from plenty to areas of scarcity. Solar and wind farms also use a lot of lands, and offshore wind licenses are few in the United States.
Unlike wind and solar, nuclear power does not depend on breakthroughs in energy storage to allow us to store wind and solar energy when it is abundant.
Despite the blow to nuclear energy caused by the Fukushima tragedy, the world recognizes the critical role nuclear energy plays in decreasing emissions. Although the United States has deactivated 40 nuclear reactors since 1960, with retirements set to reach a record level in 2021, the tide is turning.
In the United States, the Biden administration's sustainable energy strategy includes nuclear energy. The American Nuclear Infrastructure Act, which was reintroduced in June 2021, aims to grow the nuclear energy industry in the United States. The US Department of Energy committed $61 million to nuclear research and development projects in June 2021.
TerraPower, a nuclear innovation business founded by Bill Gates, is developing its first nuclear power station in Wyoming. The United States Department of Energy announced a $160 million investment in TerraPower and X-Energy, a business that designs nuclear reactors and fuel. Nuclear fusion businesses are raising billions of dollars to reimagine how nuclear power is created.
Outside the United States, countries are also waking up to the nuclear promise. Globally, there are 445 nuclear reactors. According to the World Nuclear Association, fifty-four more reactors are now under development. Additional events are being planned. China has 51 reactors, and nuclear power accounts for less than 5% of electricity generation. An additional 18 are currently under development.
Nuclear power has a slew of issues. Nuclear power facilities are prohibitively costly to construct, no one wants a nuclear reactor in their neighborhood, and nuclear waste is notoriously difficult to store. Accidents may occur due to human mistakes, as shown by the 2011 Fukushima tragedy in Japan, and everyone is familiar with Chornobyl.
Additionally, the material uranium utilized in nuclear reactors may be transformed for use in weapons. In contrast to wind and solar energy, uranium is a limited resource, which means nuclear energy is not entirely renewable.
Nevertheless, like Bill Gates, many environmentalists say that we can and must tackle these issues since nuclear power is critical to addressing climate change. Gates has claimed that automobiles kill people as well (in fact, many more than nuclear power) and that we have significantly improved the safety of automobiles via innovation.
Additionally, each year, millions of people die due to pollution created by fossil fuels. (According to one research, pollution caused by fossil fuels killed 8.7 million people in 2018.)
Russia's conflict in Ukraine has also altered public perceptions about nuclear power. Europe, particularly Germany, which prematurely deactivated its nuclear reactors, is looking for other energy sources to replace its dependency on Russian oil and gas. Belgium, for example, may not be able to retire its nuclear reactors by 2025 as initially envisaged.
According to the International Atomic Energy Agency (IAEA), nuclear energy is one of the leading sources of low-carbon electricity.
Therefore, why should one invest in nuclear energy stocks? The reality is that it does not emit carbon dioxide, does not need a large amount of land (unlike solar wind farms), and does not require consideration of seasonal or weather fluctuations. Since 1960, the United States has decommissioned dozens of nuclear reactors, but the Biden administration has incorporated nuclear energy in its clean energy strategy via the American Nuclear Infrastructure Act.
Outside the United States, countries have continued to invest in nuclear power. The World Nuclear Association says that more nations have continued developing and investing in nuclear power projects.
Fission Uranium Corp. (OTC: FCUUF) is a Canadian uranium company focused on developing the near-surface Triple R uranium deposit. With Russia's invasion of Ukraine, Fission Uranium Corp. (OTC: FCUUF) is well-positioned to prosper as the market shifts away from oil and gas in favor of alternative energy sources. The stock has increased by 58.70 percent in the previous year, making it a noteworthy nuclear energy stock to buy right now.
On September 23, Canaccord analyst Katie Lachapelle increased the Fission Uranium Corp's price objective (OTC: FCUUF) to C$1.10 from C$0.80 and maintained the stock's Speculative Buy rating.
Along with Centrus Energy Corp. (NYSE: LEU), BHP Group Limited (NYSE: BHP), and Rio Tinto Group (NYSE: RIO), Fission Uranium Corp. (OTC: FCUUF) is well-positioned to gain from the expanding nuclear energy market.
Nexgen Energy has the world's biggest high-grade uranium resources. Similarly, it would be an excellent choice for an investor seeking exposure to the industry due to increased uranium prices. In Canada, the firm holds a sizable portfolio of uranium exploration properties.
The corporation is well-positioned to become the world's top uranium producer due to its ownership of its largest uranium resources. The stock has continued to outperform the broader market, reaching an all-time high during the recent price rise in uranium.
At first look, Bloom Energy's oxide fuel cell business seems to have nothing to do with the Buffett/Gates transaction. However, there may be a nuclear link to BE stock with closer examination. Recently, the business announced a collaboration with Idaho National Laboratory to conduct nuclear energy-based hydrogen generation studies.
This potential cause for a BE stock increase is still in its infancy, and for the time being, it is unlikely to have a significant effect on the near-term price movement of Bloom Energy shares.
Bloom Energy may benefit in the short run from more indications that hydrogen will play a role in a post-fossil fuel environment. The president's upcoming legislation favors the battery-powered electric vehicle (EV) industry over the hydrogen fuel cell industry. Nonetheless, estimates indicate that this industry will continue to develop solidly until 2027. This may be sufficient to propel shares upward from their current price of $24 to historical highs.
True, there are several hydrogen fuel cell projects underway. Apart from BE stock, there is FuelCell Energy (NASDAQ: FCEL) and Plug Power (NASDAQ: PLUG) (NASDAQ: PLUG). However, Bloom Energy has the quickest path to profitability, and it is a dangerous industry in general. However, given their profit trajectory and clean-hydrogen experiment, BE stock may be the greatest method to participate in the clean energy boom.
Cameco Corporation, headquartered in Saskatoon, Saskatchewan, Canada, is a supplier of uranium via two segments: uranium and fuel services. It mines and processes uranium concentrate and purchases and sells it. The fuel services sector refines, converts, and fabricates uranium concentrate and provides conversion services.
Net profits for the fourth quarter were $11 million, while adjusted net earnings were $23 million. The annual net loss was $103 million, while the adjusted net loss was $98 million. The uranium division increased its portfolio of long-term uranium contracts by 70 million pounds, bringing it to around 185 million pounds.
As of the fourth quarter, the corporation had $1.3 billion in cash and cash equivalents, short-term investments, and $996 million in long-term debt. Additionally, the corporation had an undrawn credit line of $1 billion.
In 2022, the firm boosted its annual dividend by $0.12 per common share, which will be paid to shareholders of record at the end of the year.
The firm will continue to invest in sophisticated digital and automation technologies to enable more flexible asset management. It will promote the development and deployment of small modular reactors (SMRs) in Canada and beyond.
UEC has one of the nation's biggest uranium exploration and development catalogs. Additionally, the firm is growing.
UEC is active in a number of states around the southwestern United States. It is a significant player in the US uranium exploration market. UEC now has a market capitalization of about $700 million, and its stock has increased by more than 300 percent this year.
The corporation is concentrating its efforts on exploring new locations in search of uranium resources. They are proactive and are always attempting to increase their assets, which bodes well for their long-term development.
Energy Fuels Inc. is based in Lakewood, Colorado, and is engaged in the extraction, recovery, exploration, and sale of uranium and recovered uranium in the United States. The corporation owns and maintains three ranches in Wyoming: Nichols Ranch, Jane Dough, and Hank. Additionally, it runs the Alta Mesa Project in Texas and the White Mesa Mill in Utah. Additionally, it has uranium and uranium/vanadium resources and projects in Utah, Wyoming, Arizona, New Mexico, and Colorado that are in different stages of exploration, permitting, and appraisal. Additionally, Energy Fuels Inc. is pursuing the recovery of thorium and maybe radium.
Energy Fuels Inc. recorded a net income of $1.5 million in 2021 and had $143.2 million in working capital as of the fourth quarter of that year, including $113 million in cash and marketable securities, $30.8 million in inventories, and no short term (or long term) debt.
Prices for uranium oxide, neodymium-praseodymium oxide, and vanadium oxide surged, and the corporation has been closely following Russia's invasion of Ukraine since Russia is a significant supplier of uranium and nuclear fuel.
The firm produced roughly 270 metric tons of mixed rare earth element carbonate and expanded its infrastructure for rare earth element recovery. In September 2021, the business announced the foundation of the San Juan County Clean Energy Foundation and the sale of non-core conventional uranium assets, including the Dangerous mine, the Tony M mine, and the Rim mine, to Consolidated Uranium Inc. ("CUR"). The firm declared a $35.7 million gain on the transaction's value, boosting operations and results in 2021.
In 2014, Western Uranium & Vanadium Corp. bought its first mineral properties. They are headquartered in Colorado and also operate a mining operation in Eastern Utah.
The firm dates back farther than you may believe. It began in 2006 as Homeland Uranium Inc. and gradually acquired shares from smaller mining companies. As the firm evolved, it added a board of directors and renamed itself to reflect the minerals it sourced.
It focuses on mining uranium and vanadium in the western United States. The company's overall performance has improved during the last year.
ANU Energy OEIC Ltd. is Kazakhstan's first state-owned uranium stock.
Kazatomprom, another state-owned uranium mining corporation, owns 48.5 percent of this new stock. Kazatomprom drills 23% of the world's yearly uranium output, making it the world's biggest. Additional 48.5 percent ownership is held by the National Investment Corporation of the National Bank of Kazakhstan.
Lightbridge Corporation is a prudent investment for any investor interested in nuclear fuel technologies. Additionally, the organization offers consultancy services in the field of nuclear energy. Its primary business is attempting to mitigate nuclear technology's environmental effect, which has stymied its acceptance in a number of nations.
Nuclear energy's inclusion and acceptance will be highly dependent on its safety and manageability in the aftermath of Japan's nuclear catastrophe a few years ago. The company's technologies and services continue to generate significant demand, which explains why the stock has outperformed the market. Lightbridge Corporation's stock price has been up more than 70% year to date.
Centers Energy Corp. (NYSE: LEU) is a nuclear fuel supplier to nuclear power stations situated in Maryland. The stock has increased 75.53 percent year over year, making it one of the best nuclear energy companies to buy right now.
Centers Energy Corp. (NYSE: LEU) was raised by Roth Capital analyst Joe Reagor to Buy from Neutral on December 21, with a price objective of $58, up from $57. The company's redemption of all outstanding Series B preferred stock results in a "modest increase in value," the analyst said in a research note. Additionally, he feels Centrus Energy Corp.'s (NYSE: LEU) value "reflects fundamentals" and anticipates stronger operational results in 2022.
Centers Energy Corp. (NYSE: LEU) and Clean Core announced on December 14 that they have been collaborating to promote Clean Core's advanced nuclear fuel, which will combine thorium with Centrus Energy Corp.'s (NYSE: LEU) high-assay, low-enriched uranium, and to promote the use of ANEEL advanced nuclear fuel in CANDU reactors worldwide.
According to Insider Monkey's Q4 database, seven hedge funds were positive on Centrus Energy Corp. (NYSE: LEU), with interests totaling around $23 million, up from two funds in the preceding quarter, which had stakes totaling $14.1 million in Centrus Energy Corp. (NYSE: LEU).
Outside of the United States of America, a surge of nuclear energy operations has gained pace in recent years. China, India, Egypt, and Turkey are just a few of the countries investing heavily in nuclear reactors. The good case for nuclear energy is likely to persist for a longer period of time - or at the very least until the present energy crisis is resolved.
As the cost of oil increases, nuclear electricity becomes less of a power and more of a need. Along with oil, coal, and natural gas, nuclear energy provides an additional avenue for investors to benefit from rising energy demand.
Nuclear energy is by far the most secure form of energy. It results in almost 330 times fewer fatalities than coal, 250 times fewer deaths than oil, and 38 times fewer deaths than natural gas. Nuclear power is a clean, efficient, and effective source of energy. Unlike coal and oil, nuclear power does not emit hazardous emissions into the environment.
This indicates that nuclear power is almost ten times more costly to develop than utility-scale solar energy on a per-kilowatt-hour basis. Another critical thing to consider when comparing solar energy to nuclear energy is the amount of energy each generates on an annual basis.