One Stock Set To Ride The Next Leg Of Uranium Bull Market

Uranium is breaking out…big time.

If you were around for the last uranium bubble that ended in 2008, you may already see the staggering potential. 

If you weren’t in that one, you’re going to be glad you’re reading up on it now. 

Because there’s few bull markets that can be as lucrative and fast-growing as uranium. 

You see, uranium is a tiny market. 

The total value of all uranium mined in a year is less than $10 billion. 

All the gold mined in a year is well over 20 times that at more than $200 billion. 

That’s why a small amount of interest in uranium can send prices climbing and send uranium stocks exponentially higher. 

That’s what could be happening very soon as a new uranium boom unfolds. 

The New Uranium Boom Is Still Unfolding

The long-term uranium price says it all about the state of the uranium industry.

This chart shows uranium prices going all the way back to 2000:

It’s a classic long-term commodity cycle chart. 

Bust. Boom. Bust again. Boom again. 

Right now we’re in a boom again.

And, after a 15-year hangover where the uranium industry saw little to no investment or production expansion, uranium prices have a lot of room to boom. 

That’s happening right now.

At the start of the year you could have bought a pound of uranium for $51. 

Today that will cost you $85.75.

That’s a surge of 68%.

Imagine that happening in gold. 

If gold was up 68% to $3300 an ounce, you wouldn’t be able to escape hearing about it.

That’s what happened in uranium and still not many are talking about it.

At least not yet they aren’t. 

And that’s the opportunity.

Sky’s The Limit

The unique thing about uranium is its value. 

There’s not much of a cap on how high uranium prices can go. 

A pound of uranium has so much energy, that even $200, $300, or even $500 per pound is out of the question.

Uranium users (electric utilities) can still get a high return on it. 

That’s what makes uranium bubbles so explosive. 

And it’s why we’ve got a stock that could really move too.

That stock is Uranium Energy Fuels (UUUU) and you’ll see how it fits into all this right here.

Leading The Way: Uranium Stocks Picking Up Steam

The uranium sector isn’t much different than most other mining sectors. 

When the price of a commodity starts to move, the miners of the commodity tend to follow. 

But they all don’t follow the price surge right away. 

The big miners are usually the first to move.

In uranium, there’s only really one of them that’s publicly traded on a major U.S. exchange. 

That company is Cameco (CCJ).

Cameco has huge uranium mining operations in the ultra-rich uranium region in Saskatchewan, Canada.

The chart below shows how Cameco shares have really started to move with uranium’s surge.

You can see the big breakout in Cameco shares coincided with the uranium price breakout in late summer. 

But it’s part of a much longer trend.

Above we noted how uranium prices are up 68% this year. 

Well, Cameco’s share price is up 95% this year. 

So that’s a totally normal move. 

Commodity price up, big miners up a bit more. 

Which brings us to our stock recommendation for the day. 

The “Catch-Up” Uranium Stock

Above we mentioned Energy Fuels (UUUU).

Energy Fuels is a mid-tier uranium miner.

Energy Fuels has seven uranium mining projects underway. 

One is in production. 

Another was put on “standby” in 2019.

Two others are licensed, in development, and near production.

Three more are in earlier stages of development too.

That’s all not ideal to “cash in” on the uranium price spike, but we don’t want to be ideal at this stage in a bull market.

We want leverage. 

And that’s what Energy Fuels offers. 

Since its current production is so small (one operational mine), it is in position to greatly expand if uranium prices continue to rise.

That gives it major leverage in the right market conditions which, in uranium, could be coming soon if they’re not already here. 

That’s why Energy Fuel shares are a bit of a laggard too as the 5-year chart below shows:

Energy Fuel’s shares have done okay, but they’ve lagged far behind uranium prices and Cameco shares.

For investors looking to maximize the opportunity in uranium, that’s a good thing.

Conclusion

In the end, this is as straightforward as they come.

Uranium is awakening from a 15-year slumber

A breakout is underway.

The potential increase in uranium prices is easily 2X, 3X or more.

Historically the top-tiers will move, but the middle companies can explode in this bull run.

And Energy Fuels (UUUU) sits right in that middle tier of uranium companies.