Right now in the junior mining market, there is blood in the streets. There is no other way to put it. Even the highest quality juniors are getting sold off harder than we have seen in years. No doubt it is painful, but there is one sector that has been performing incredibly well… that sector is Uranium.
Here is a price chart for Uranium over the last year.
The price of uranium has been on a consistent, steady rise over the last 12 months and has really started to come to life in the last 3-4 months. I have been bullish on Uranium over the last year and highlighted why everyone else should be too in a previous article from last November.
The prices of the largest uranium companies have also been heading higher.
Below is a 1-year price chart for Cameco Corporation, one of the largest uranium producers in the world. The stock is up 32% over the last year.
So Why is Uranium Going Up?
Uranium, once shrouded in misconceptions and fear, is experiencing a remarkable shift in public perception.
We all know that nuclear power has been given a bad rep since the Chernobyl and Fukushima disasters, and the media has played a huge role in convincing people that nuclear energy is evil — but this couldn’t be further from the truth. Nuclear energy is actually one of the safest, cleanest and most efficient energy sources available. It produces less carbon emissions than solar, it’s as safe as wind power, and it can power entire cities.
In an era marked by the urgency of sustainable energy solutions, uranium stands out as a clean, efficient, and reliable power source. Its ability to generate vast amounts of electricity with minimal environmental impact is gaining recognition, making it an indispensable resource for combating climate change.
It seems the general public is finally waking up to this reality and the demand for uranium has started to rise as a result.
My Top Picks in the Uranium Space
There are two companies in the Uranium space which I have previously written about: Strathmore Plus Uranium (TSXV:SUU) and F3 Uranium (TSXV:FUU), which both still remain my top picks in the space.
These stocks have been performing incredibly well since I first wrote about them.
Strathmore Plus Uranium is up +90% YTD and F3 Uranium is up +241% YTD. These are fantastic returns, and even more so, in this poor market environment.
I continue to hold both Strathmore Plus and F3 Uranium in my portfolio as I believe both stocks are still primed to go higher, especially when considering the bullish outlook on the uranium market as a whole.
Strathmore Plus Uranium (TSXV:SUU)(OTC:FUUFF)
Strathmore Plus Uranium is an early-stage uranium explorer with multiple highly sought-after properties with HUGE potential, one of which has a history of past uranium production AT SURFACE and another which is directly adjacent to Cameco.
The company ticks all the right boxes for investors in terms of asset quality, management team, and share structure and with such a low float and market cap of only $22 million, it provides a huge opportunity for both short-term traders and long-term uranium investors to capitalize on the inevitable rise in uranium prices.
To read more about Strathmore Plus Uranium, click HERE.
F3 Uranium (TSXV:FUU)(OTC:SUUFF)
F3 Uranium is slightly further along than Strathmore Plus. The company made a massive discovery back in November of last year and consistently expanded the discovery zone during a highly successful winter drill program.
While F3 Uranium is still in the early stages of exploration, historical examples such as NexGen Energy's Arrow Deposit and ISOEnergy's Hurricane Deposit suggest that significant growth potential exists. The market cap of these established companies has grown substantially over time, indicating the potential for F3 Uranium to follow a similar trajectory.
Over the summer, F3 Uranium has been building upon the winter program's success, with step-out drilling as well as exploring for new zones of mineralization. The company aims to establish the potential size of the JR zone and explore new areas of uranium mineralization.
We will be seeing some additional results from the summer drill program over the course of the next few weeks which has the potential to drive further increases in the company's share price.
To read more about F3 Uranium, click HERE.
A New Opportunity with the Same Management Team?
There is another very interesting company which I have been eyeing very closely with the same management team as F3 and Strathmore Plus. This particular company is not in the uranium space, but given how much money I have made with this management team in the past, I am more than happy to take my chances that they will succeed in a different sector. I will be releasing the name of this company in my next article…. stay tuned.
- SmallCapInvestor