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The third quarter of 2020 saw uranium spot prices continue to trend lower. Starting the period at US$32.45 per pound values slipped below US$30 for the first time since March.
Uranium prices peaked in April when the
energy
fuel was trading for US$33.93, their highest value since January 2016.
At the start of the quarter uranium was up 31 percent from its starting point in January, US$24.63. The uptick was short lived as prices began trending lower, falling 5 percent month-over-month by August.
By September another 2 percent was shed, totaling a 7.7 percent decline from July through September.
While uranium was unable to retain its early 2020 values a number of producers and explorers have seen growth in the quarter. Whether expanding drill efforts or raising capital the sector has been busy with activity during a season that is usually slow.
Below the Investing News Network has listed the top uranium stocks on the TSX and TSXV by share price performance so far this year.
All year-to-date and share price information was obtained from
TradingView
at close of day on October 20, 2020. All companies listed had market caps above C$10 million at that time.
1.
Iso Energy
(TSXV:
ISO
)
Year-to-date gains: 228 percent; current share price: C$1.41
Based in Canada’s
Athabasca Basin
, ISO Energy is focused on the development and exploration of its 21 properties.
The third quarter was a busy period for ISO Energy, the company completed 2 financings. The first, a
C$4 million
non-brokered private placement, and the second a
C$6 million
with Queens Road Capital (TSXV:
QRC
).
ISO also entered into an agreement with
gold
firm NxGold (TSXV:
NXN
) to grant the latter an option to acquire a 100 percent interest in the Mountain Lake uranium property located in Nunavut.
“This option agreement with NxGold demonstrates that our strategy of low-cost acquisitions during a depressed uranium market with the goal of future divestment has begun to pay dividends,”
said Craig Perry
, president and CEO of ISO Energy.
2. NexGen Energy (TSX:
NXE
)
Year-to-date gains: 40 percent; current share price: C$2.27
NexGen Energy is another uranium developer focused on the prolific Athabasca Basin. The company holds a portfolio of projects and discoveries, including: The Arrow deposit, the Bow discovery, the Harpoon discovery and Arrow South.
Using the rising uranium price to its advantage, NexGen
completed
a C$30 million financing at the end of May. Like ISO, the financing was also with Queens Road Capital.
In late August company shares hit a year-to-date high of C$2.60.
3. Mega Uranium (TSX:
MGX
)
Year-to-date gains: 37.8 percent; current share price: C$0.13
Headquartered in Toronto, Mega Uranium is focused on uranium properties in Canada and Australia
Mega Uranium shares reached a year-to-date high at the end of Q3, to trade for C$0.15. Company stock performed positively throughout the three-month period despite Mega not releasing any company news.
The last
release
from the resource firm came in mid-May when Mega entered into an option agreement with NxGold for the Ben Lomond and Georgetown properties, both located in Queensland, Australia.
4. Forsys Metals (TSX:
FSY
)
Year-to-date gains: 33.7 percent; current share price: C$0.16
Forsys Metals is focused on developing uranium projects on the African continent. Currently, the explorer owns the Norasa project which includes the fully permitted Valencia uranium project. The company is also developing the Namibplaas uranium project, both in Namibia.
Company shares breached the C$0.18 level twice in Q3, once in July and the second time in mid-September.
News regarding the company has been sparse this year. In May, Forsys
delayed
the release of financial reports due to COVID-19.
5. Global Atomic (TSX:
GLO
)
Year-to-date gains: 28 percent; current share price: C$0.63
Global Atomic is a diversified company specializing in uranium exploration in Niger and
zinc
recycling in Turkey.
Shares of Global trended higher throughout Q3, reaching a quarterly high of C$0.77 on September 29.
In May, the company
filed
a preliminary economic assessment for its Dasa project in Niger. In the filing, Global states a base case uranium price for the project US$35 per pound.
According
to Global, Dasa is a tier 1 asset, with approximately 102 million pounds of indicated uranium. On September 28, a mining permit application for the Dasa project was submitted in Niger.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: IsoEnergy is a client of the Investing News Network. This article is not paid-for content.
