Three Uranium Stocks for the Bull Market

Uranium is in a bull market that is now attracting significant investor and media attention. 

We — meaning Digest Publishing and our editors — were among the earliest to it. Our readers have already made handsome profits as a result. 

As just one example of our ethos, we got into a small company called URZ Energy back in 2017 at an adjusted price of $0.45. That company was taken out by Azarga the following year. 

In 2021, Azarga was taken out by enCore Energy, which now trades on the NASDAQ, and hit all-time highs today north of $4.70. We’ve sold some along the way but still own a good chunk to be sure. And those $0.45 shares are now up over 940%.

  Uranium Stock Chart

It’s been a good run so far.

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And that’s just one example of a uranium company we had a good position in early. So we have skin in the game. 

Nick Hodge Uranium Yellowcake aka U3O8.pngI say that because now that we’re in a bull market, there is a growing chorus of voices with an opinion about uranium, its cycle, the companies within it, and how to “time” it all. 

So since we have a direct line to some of the original uranium bulls of this cycle, I thought we’d check in with them. 

My partner Gerardo Del Real interviewed Amir Adnani of Uranium Energy Corp. (NYSE: UEC) just last month. We all have a long history together. I visited UEC’s South Texas uranium production assets years ago and held the yellowcake in my hand.

We’ve been in that stock for some time as well. Gerardo’s readers are up over 450%. And when they spoke last month, Amir told Gerardot that:

Considering where supply-demand fundamentals are, demand for this year will be close to 200 million pounds. Supply from mining will be at 145 million pounds. We have a 55 million pound deficit going into 2024 annually. It's going to keep cumulatively growing because there are no significant new uranium mines under construction anywhere in the world.

And we just saw at COP28 in Dubai, the biggest climate event of the year, the biggest pledge ever seen, led by the US, towards tripling of nuclear energy. And Gerardo, that means tripling demand by 2050. And I'm not seeing how the supply side is going to triple. No one made a pledge to triple the supply side. Meanwhile, people are pledging to triple the demand side with nuclear energy.

Uranium prices were at $80 at the time. They are now near 16-year highs at $100 per pound. 

Just two weeks ago, Gerardo sat down with Jordan Trimble, who is CEO of Skyharbour Resources (TSX-V: SYH)(OTC: SYHBF). We’ve been involved in that deal for several years and got readers in as low as C$0.15. Those shares have a 52-week high of C$0.64, or more than 300% upside. Jordan told Gerardo earlier this month that:

When we look back at the long-term contracting market in 2023, we almost hit the replacement rate of 180 million pounds. It was reported that the volume for the year was just over 160 million pounds. So I expect we will see that replacement rate hit this year and in the coming years.

It's important to note that when you look at previous years where replacement rate volumes were exceeded, those were years where you saw significant moves in the uranium price. We saw that in the mid-2000s. We saw that again in the early 2010s. So we're working our way to, I think, another one of those years where we'll see continued significant volumes in the long-term contract market.

I think Tim Gitzel, the CEO of Cameco, said it best when he said, "We've never been this early in the cycle with prices as high as they are today." And when we look at previous cycles like 2006-07 or 2010-11, where, again, you had high contracting volumes, you had upward pressure on the price. We haven't started at this US$80, US$90, US$95 uranium price. So it's very, very bullish, I think, going into the new year.

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There is now a lot of noise out there when it comes to uranium stocks and uranium investing. 

It’s worth cutting through that noise and getting insights from investors and management teams that saw the uranium cycle coming and are now navigating through it. 

And that’s my last point: navigation. 

This isn’t about calling the bottom and calling the top.

We were contrarian enough to be in very early and have been rewarded handsomely as a result. 

But we still have large uranium positions and a long way to go in this uranium cycle. 

So if you want to see how investors like Gerardo, who have direct connections to top-tier uranium management teams, are managing their uranium portfolios…

I invite you to see how we’re doing that here.

Call it like you see it,

Nick Hodge

Nick Hodge
Publisher, Daily Profit Cycle