Our mining expert provides information on the top ASX uranium stocks and the industry. In 2021, some of the best uranium stocks ASX increased by 100%. One of the primary causes was the rising demand for nuclear power, with no effective option for decreasing carbon emissions.
This was a major topic of discussion during COP26. Global events, including the Fukushima nuclear disaster and Kazakhstan’s increasing uranium output, have resulted in overstock levels in recent months. We keep you up to date on uranium recovery to provide you with the most comprehensive reference to ASX uranium equities.
What Is Uranium?
Uranium is one of the heaviest elements and a naturally occurring radioactive substance. It is a silvery-white metal that is 1.7 times denser than lead and is one of the heaviest elements. Most notably, it is an essential feedstock for nuclear energy.
Uranium was discovered in 1789 by German scientist Martin Klaproth as part of a mineral called uraninite. However, it would be another 50 years until another scientist got uranium as a metal. French researcher Henri Becquerel will take another 50 years to determine whether uranium is radioactive.
Finally, our quest to unlock uranium’s full potential would end shortly before World War II. Two German physicists demonstrated in 1938 that it is feasible to break uranium into components while releasing energy. Fast forward to 2022, and science becomes a little more difficult. Today, we know that there are three naturally occurring uranium isotopes:
- U-235, which has the highest energy and accounts for around 0.7% of uranium;
- U-238, which accounts for 99.28% of uranium;
- U-234 is present in trace levels (less than 0.0055%).
Only U-235 can be the starting point for a nuclear reaction, but U-238 has no application in nuclear energy generation. However, emerging technology may be able to transform this into a non-nuclear but essential fuel source. Let’s also look at the factors driving the demand for the best uranium stocks ASX for 2022.
Demand Drives ASX Uranium Stocks
Right now, supply uncertainty is fueling demand. Concerns about energy security have been on everyone’s attention since the epidemic began, but especially when Russia invaded Ukraine and the US and Europe realized how dependent they’d grown on Russia’s energy.
Russia accounts for around 35% of worldwide uranium enrichment, with approximately 16-17% imported into the United States. Furthermore, Kazakhstan produces about 40% of the world’s uranium from Russian ports. Thus sanctions on Russia might have a direct impact on supply.
As a result, uranium players worldwide are getting back into the game, eager to resume dormant projects and establish new ones. According to the International Atomic Energy Agency, there are 450 nuclear reactors in operation worldwide, with 55 additional ones under development, with 26 set to come online next year. Let’s find out the best uranium stocks ASX for 2022.
The Best Uranium Stocks ASX in 2022
2020 and 2021 were watershed moments for the best uranium stocks ASX. Prices increased from US$29.63 per pound to US$50.63 between January and September 2021 and have maintained over US$40 since then. In the first quarter of 2022, attitude remained positive.
It is one of the best uranium stocks AXS. They are operating two projects: the Lance uranium project in the United States and the Karoo uranium project in South Africa. This corporation generates money from both projects.
The Lance uranium project generates more revenue than the Karoo uranium project. At the time of writing, the price of PEN was AUD 0.20, with a 52-week low of AUD 0.10 and a high of AUD 0.35. ASX: Morningstar PEN’s Quantitative Fair Value is AUD 0.37. As a result, we may expect a significant upswing in 2022.
PDN is the largest ASX-listed Australian uranium producer and mining business based in Western Australia, with projects in South Africa, Australia, and the well-known Langer Heinrich mine in Namibia.
PDN was trading at AUD 0.78 at the time of writing, with a 52-week low of AUD 0.36 and a high of AUD 1.35. According to Morningstar Quantitative Fair Value, the current market value of ASX: PDN is AUD 0.92. So, if individuals start investing in uranium stocks again in 2022, we may witness a significant increase in this stock.
Energy Resources Of Australia
This corporation is involved in selling uranium oxide and processing and mining. ERA controls and operates the Ranger uranium mining site in Darwin, Northern Territory. The price of ERA was AUD 0.34, with a 52-week low of AUD 0.19 and a high of AUD 0.58. ASX: ERA’s Quantitative Fair Value is AUD 0.41.
Core Lithium Inc.
Core lithium outperformed the industry in 2021 and will continue to do so in 2022. CXO is primarily a lithium producer, but they are also involved in uranium mining, including the Fitton Uranium Project in South Australia and several uranium mining locations in the Northern Territory. In 2022, we expect it to be one of the best uranium stocks ASX.
CXO was trading at AUD 1.02 at the time of writing, with a 52-week low of AUD 0.21 and a high of AUD 1.11. According to Morningstar, the ASX: CXO Quantitative Fair Value is AUD 1, which CXO has already reached. As a personal believer and owner of CXO shares, we anticipate the stock will be worth more than $1.5 by the end of 2022.
Anson Resources, Inc.
This firm was created in 2009 and works with various commodities, including copper, lithium, and nickel. They also have Uranium projects, one of which is the Yellow Cat Vanadium-Uranium project.
At the time of writing, the price of ASN was AUD 0.11, with a 52-week low of AUD 0.04 AUD and a high of AUD 0.18. ASX: Morningstar ASN’s Quantitative Fair Value is AUD 0.17. As a result, we may expect ASN to break it’s high and set a new high in 2022.
Conclusion: The Best Uranium Stocks ASX
Soaring commodity prices and widespread inflation are ushering in a new era for the planet. Many countries are seeing levels of inflation not seen in decades. And energy has been a primary source of rising inflation, worsened by Russia’s invasion of Ukraine.
The globe requires an energy answer. The globe’s reliance on fossil fuels is dwindling as the world shifts to cleaner and self-sufficient sources. Nuclear energy has the potential to play a significant role in the world’s energy solution.
Also read: Theta Fuel Price Prediction 2022 to 2026