There are few stocks that revolve around the nuclear industry, whether it is uranium mining or developing power plants. These companies are focused on alternative energy sources that are much better for the planet’s environmental health on a large scale.
There have always been tons of public criticism regarding the overall efficacy and safety of nuclear power, which stems from the nuclear disaster in Chernobyl in 1986 and the Fukushima disaster in 2011. This has turned many different countries away from pursuing an energy future using nuclear energy, fearing what could go wrong if a disaster similar to the ones mentioned would occur in other countries.
Below I will discuss three different stocks in the nuclear industry that have seen their share price fall over the last year from a number of factors, including reduced uranium mining operations and recent financial instability. This may offer a unique buying opportunity for investors looking to expand their portfolios and invest in the nuclear industry.
NuScale Power (SMR)
Nuscale Power (NYSE:SMR) provides small modular nuclear reactor technology with the goal of carbon-free energy. Small modular reactors are advanced nuclear power plants with a much smaller footprint than conventional reactors. The company’s flagship product is its VOYGR small modular reactor which uses pressurized water technology to produce nuclear energy. Its design has been approved by the U.S. Nuclear Regulatory Commission, making it the first and only of its kind that garnered approval for a small modular reactor. The company also offers Energy Exploration Centers, also known as E2 Centers, which are located in a few U.S. universities and Bucharest, Romania. The E2 Centers use computer models to simulate being a control room operator of VOYGR power plants.
The company was founded back in 2007 in Portland, Oregon, and is a subsidiary of Fluor Corporation (NYSE:FLR). And they recently started trading as a public company in May 2022 through a special-purpose acquisition company called Spring Valley Acquisition. Due to financing instability, their share price has fallen by 35% over the past year.
They announced their first quarter results for 2023 on May 9; stating an increase in revenue that more than doubled and a net loss that expanded by 52% compared to the year before.
Uranium Royalty (UROY)
Uranium Royalty (NASDAQ:UROY) is a pure-play uranium royalty company. It acquires and manages uranium interests, including debt and equity in various uranium companies and uranium mining royalty streams. Uranium Royalty has uranium interest properties located in Canada and the U.S. The properties are operated by nuclear energy companies such as Uranium Energy (NYSE:UEC), Cameco (NYSE:CCJ), and Energy Furls (NYSE:UUUU).
The company started trading on the NASDAQ Capital Market in April 2021. Over the past year, the company’s share price has fallen by 20%. On July 5, Uranium Royalty announced that it received approval to trade on the Toronto Stock Exchange under the ticker symbol (URC.TO).
Ur-Energy (URG)
Located in Littleton, Colorado, Ur-Energy (NYSE:URG) acquires, develops, and manages uranium mineral properties. Like other similar uranium mining companies, Ur-Energy employs an environmentally friendly mining process called In Situ Recovery. The company operates multiple uranium mines in Nevada and Wyoming. Their flagship mining property is known as Lost Creek, based in Southern Wyoming. Since the start of operations back in 2013, they have produced 2.7 million pounds of yellowcake, impure uranium oxide produced during the mining process.
In their year-end 2022 earnings results, the company stated a total sales increase of 19% and pounds captured of uranium oxide growing by 29% compared to the full-year 2021 results.
Ur-Energy was founded in 2004 and started trading on the NYSE American Exchange back in 2008. Over the past year, their share price has fallen by 15%, due to the reduced production rate of their uranium mining operations.
On the date of publication, Noah Bolton did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
