6 Best Uranium Stocks In Canada for October 2022

Canada is the 39th most populated country in the world, and it produces about 2% of the world’s electricity.

Despite the fact that we have considerable resources and a lot of uranium, nuclear power only makes up about 15% of our power generation resource mix, thanks mostly to our reliance on clean hydropower.

But even if we might not need a lot of uranium for domestic power production, its exports pick up as more countries around the globe start relying on nuclear power as the “transitional energy source” as they move to cleaner renewables.

This is likely to make the best uranium stocks in Canada powerful holdings in the near future.

Uranium – The Future Of Energy

More countries are now focused on “green” energy and reducing their carbon footprint than ever before. It’s too soon to say whether we are too late or if there is still hope of turning the ship around because we’ve already started to experience the adverse effects of global warming.

So, what does clean and green energy has to do with uranium?

Nuclear power, fission reactors, or uranium-fueled power (whatever you wish to call it) has the potential to act as the perfect “transitional resource” as the world goes green.

About two-thirds of the world’s total electricity still comes from fossil fuels, and about 40% comes from coal alone, which is by far the “dirtiest” fossil fuel.

It means that the world has a long way to go before it can fully rely on renewables to support the energy needs of about eight billion people, and till it does, it can use nuclear power to get rid of fossils.

Even if you take into account the mining and refining process, nuclear power has a minimal carbon footprint. And it’s also cheaper compared to fossil and most other renewables.

Many believe that an eventual switch to nuclear power as the transitional energy source between fossil and zero-carbon renewables is inevitable, and if you also believe in the possibility, then your portfolio might need to be augmented with uranium.

Best Uranium Stocks In Canada

1. Cameco Stock

Cameco logo
  • Ticker: CCO.TO
  • Forward Dividend Yield: 0.32%
  • Dividend Payout Ratio: 53.33%
  • Dividend Yield (12-Month Trailing): 0.21%
  • Upcoming Dividend Date: Dec 15, 2022
  • Market Cap: $15.11 Billion
  • Forward P/E Ratio: 37.55
  • Average Analyst Rating: 1.8 - Buy
  • This Saskatoon-based company is the second-largest uranium producer in the world.
  •  It has the annual capacity (and permission) to produce 53 million pounds of uranium concentrates.
  • It offers a range of services related to uranium, like refinement, conversion, and fuel manufacturing.
  • It has projects and operations in multiple countries, including the US and Australia.

The stock pays dividends; however, the current yield is very low. The capital appreciation potential of the company looks high thanks to the current spike, but it’s not a consistent grower.

2. NexGen Energy Stock

NexGen Logo
  • Ticker: NXE.TO
  • Forward Dividend Yield: N/A
  • Market Cap: $2.68 Billion
  • Forward P/E Ratio: -93.17
  • Average Analyst Rating: 1.8 - Buy
  • The Vancouver-based mineral exploration company holds 199,576 hectares of uranium-rich land in Saskatchewan.
  • Its discovery, Arrow holds the largest development-stage deposits of heavy metal in the country.
  • The estimated mill capacity (maximum) for Uranium ore of the Arrow deposit is 1,300 tons per day.

3. Denison Mines Stock

Denison Mines Stock logo
  • Ticker: DML.TO
  • Forward Dividend Yield: N/A
  • Market Cap: $1.41 Billion
  • Forward P/E Ratio: -172
  • Average Analyst Rating: 2.0 - Buy
  • Uranium exploration and development operations in Northern Saskatchewan.
  • It has exposure to about 280,000 hectares of land home to high-grade uranium deposits.
  • Some of its projects produce uranium at the lowest costs around the globe.

DML has no debt, strong financials, and decent exposure through various stakes in a uranium-rich region.

4. Fission Uranium Corporation Stock

Fission Uranium Logo
  • Ticker: FCU.TO
  • Forward Dividend Yield: N/A
  • Market Cap: $497.49 Million
  • Average Analyst Rating: 1.7 - Buy
  • FCU is based in BC and is focused on developing near-surface (low cost/low carbon footprint) high-grade uranium deposits.
  • Has access to only triple-R (high-grade) near-surface uranium deposits in the region.
  • Projected production costs are expected to be the lowest in the world.

5. Global Atomic Stock

Global Atomic Stock logo
  • Ticker: GLO.TO
  • Forward Dividend Yield: N/A
  • Market Cap: $653.92 Million
  • Average Analyst Rating: 2.0 - Buy
  • Global atomic has exposure to uranium (in Niger) as well as Zinc through its investment in Turkey.
  • It has access to a long-life uranium mine (12 years, based on current projections).
  • The projected production capacity is 44 million pounds a year.

If you are looking for international uranium exposure, Global Atomic might be the stock for you. Its main operations, i.e., uranium production and the other business (zinc production via recycling), are both outside Canada. Its positioning places it closer to Asian, African, and European markets.

6. Uranium Royalty Stock

Uranium Royalty Stock logo
  • Ticker: URC.V (Venture Capital)
  • Forward Dividend Yield: N/A
  • Market Cap: $321.02 Million
  • Forward P/E Ratio: -117.67
  • Average Analyst Rating: 1.3 - Strong Buy
  • Only pure-play uranium royalty stock in Canada.
  • It has a diverse royalty portfolio, and the diversification is not just geographic but also the type of royalty.
  • It offers exposure to uranium, albeit with a safety “veil” of royalty in between (something that has already been successful for gold).

Uranium royalty is a unique way to gain exposure to heavy metals, and it gives the company more flexibility than direct uranium producers and miners. The downsides might be low, but the upside is decent enough.

Uranium ETFs

There are two uranium ETFs in Canada that are worth considering:

Sprott Physical Uranium Trust (TSX:U.UN): One of the largest uranium trusts in the world and offers direct exposure to uranium itself. The MER is 0.35%. The trust grew 177% since the market crash.

Horizons Global Uranium Index ETF (TSX:HURA): It’s made up of some of the largest uranium companies around the globe, including Cameco, which is the largest holding in the trust. The MER is quite high at 0.85%.

Can You Invest In Uranium?

Unless you wish to be declared a nuclear terrorist, you shouldn’t look into investing in uranium directly. It’s both illegal and practically impossible to buy uranium anyway. Even between any two countries, uranium is not traded as a commodity or is available for purchase at a commodities exchange.

As a highly radioactive metal, it’s also not something you would want in your backyard (unless it’s made up of thick lead walls).

You can, however, invest in uranium via some of the best uranium stocks Canada has to offer. It’s a relatively small selection, but it is enough to get your portfolio exposure to the radioactive metal that has already changed the world.

Is There Uranium In Canada?

Yes, and a lot of it. Canada is already the second-largest uranium producer in the world and accounts for 13% of the total production. It’s also home to the largest uranium-producing mine (Cigar Lake).

And even though its uranium production, though quite impressive, can’t hold a candle to Kazakhstan, the largest producer by far, Canadian uranium deposits of high-grade uranium puts the country at the top of the list.

How To Buy Uranium Stocks In Canada

The cheapest way to buy stocks is from discount brokers. My top choices in Canada are:

Readers Choice
Qtrade
Qtrade
  • 105 commission-free ETFs to buy and sell
  • Excellent customer service
  • Top-notch market research tools
  • Easy-to-use and stable platform 
Low Fees
Wealthsimple Trade
Wealthsimple Trade
  • Stock and ETF buys and sells have $0 trading fees
  • Desktop and mobile trading
  • Reputable fintech company
  • Fractional shares available
Well-Rounded
Questrade
Questrade
  • ETF buys have $0 trading fees
  • Excellent market research tools
  • Most types of registered accounts available

To learn more, check out my full breakdown of the best trading platforms in Canada here.

Conclusion

Best Uranium Stocks In Canada infographic

As the world rapidly moves away from fossil, uranium will become even more critical in the energy space, even more so when electric vehicles become more commonplace and the world needs more clean electricity to move.

The post-crash spike that uranium and associated businesses saw might be a sign of things to come. And if you want this radioactive material to become an asset, you might consider adding its nuclear power to your portfolio in the form of the best uranium stocks in Canada.

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Author Bio - Christopher Liew is a CFA Charterholder with 11 years of finance experience and the creator of Wealthawesome.com. Read about how he quit his 6-figure salary career to travel the world here.

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