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Uranium Equities Off to a Poor Start in 2022

Actually, shares of uranium producers had a good start into the first week of the year, which was probably mainly due to the unrest in Kazakhstan. Approximately 41% of the world’s uranium supply comes from the country, which is why it is understandable that when civil unrest arises in the country of the main producer, some probably fear global uranium availability. But the unrest has now subsided and the uranium price has not experienced any further upswing.

This is also reflected in the uranium shares. Going into the fourth week of the new year, one sees the shares of uranium producers continuing on the downswing. The majority of pure uranium producer stocks have arrived at a negative performance of almost 20% YTD. Uranium Energy Corp. and Energy Fuels Inc. are further in the downtrend with over -18%. The large producers that are not purely focused on uranium production such as Rio Tinto or BHP are getting support from other sectors such as the coal sector which is experiencing an upswing this year.

Perhaps uranium stocks have also been infected by the general market sentiment with the major indexes all in the red. Since the U.S. Federal Reserve’s tapering timeline was announced, the S&P500 (YTD -7.73%), the DOW (YTD -5.7%), and the NASDAQ (YTD -11.99%) have gone negative. This negative movement could continue for the time being.

CompanyTickerPriceYTD %
Uranium Royalty Corp.UROY $      3.02-17.26%
Uranium Energy Corp.UEC $      2.73-18.51%
Energy Fuels Inc.UUUU $      6.21-18.61%
CamecoCCJ $   20.16-7.57%
KazatompromKAP.IL $   34.20-6.94%
Denison MinesDNN $      1.18-13.87%
NexGen EnergyNXE $      4.06-7.09%
Ur-Energy Inc.URG $      1.14-6.56%
BHP GroupBHP $   64.977.66%
Rio TintoRIO $   74.3611.08%
January 22, 2022

Investors interested in uranium stocks will probably stay on the sidelines for now and wait until the correction forms a bottom. As a further downtrend is expected, a cash position is probably a good choice at the moment in order to be able to take advantage at the right time.

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