Australia is home to the largest uranium supply in the world, filling about a third of the world's uranium needs.
As a result, it's no surprise that there are several ASX-listed mining stocks with uranium exposure. Some have been actively mining for many years, such as Energy Resources of Australia (ASX: ERA), while others are exploring new uranium deposits alongside other resources that they are mining.
But uranium is a controversial commodity.
While it can be used in nuclear energy production, it has a destructive history. In recent years, uranium prices have fallen amid oversupply issues as Kazakhstan has ramped up production and the Fukushima disaster led to plunging sentiment toward nuclear energy use.
However, in 33 countries, it is being used as a low-emission option, with France leading the charge with around 70% of its power coming from nuclear.
Uranium stocks are listed companies involved in the mining, refining and distribution of global uranium.
ASX uranium stocks
International uranium stocks
- Areva SA (ARVCY)
- Aura Energy (AUEEF)
- Cameco Corp (CCJ)
- Berkeley Energia (BKLRF)
- Fission Uranium (FCUUF)
- Paladin Energy (PALAF)
- Ur-Energy Inc. (URG)
To date, there are no ASX-listed uranium ETFs and there are only a few pure-play ETFs dedicated to tracking uranium on overseas exchanges. These include the following:
- Global X Uranium ETF (NYSE:URA)
- Horizons Global Uranium Index (TSE:HURA)
- North Shore Global Uranium Mining ETF (NYSE)
- VanEck Vectors Uranium + Nuclear Energy ETF (ARCA:NLR)
Buy Uranium stocks online
To invest in uranium stocks in Australia, you need a brokerage account. Review your options in the table below.
Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
Why invest in uranium stocks?
If you believe uranium will be important in the world's race to net zero, then uranium stocks could be a major winner in your portfolio.
It's no secret that oil production and consumption continue to trend downward, but whether the world goes with renewables or nuclear to achieve net zero goals remains to be seen.
Uranium fuels nuclear energy. And nuclear energy presents a low-carbon alternative to fossil fuel, with the International Energy Agency stating that the world must double its nuclear power capacity by 2050 to meet climate change emission-cutting targets.
To help meet this need, The World Nuclear Association reports that 33 countries worldwide are working to build nuclear power programs, including China, India, Israel, Norway, Saudi Arabia and Uganda.
Uranium is poised to play a big role in the future of global energy production.
Investors in Australia who buy now could have a viable buy-and-hold investment on their hands as nuclear energy ramps up around the world.
Risks of investing in uranium stocks
Some global attitudes towards uranium have begun to pivot, but not everyone is ready to put uranium’s destructive past behind them.
The devastation of uranium-packed nuclear bombs on Hiroshima and Nagasaki coupled with the terrifying fallout of Chernobyl stand as proof of uranium’s dangers. And after the Fukushima power plant meltdown in 2011, Japan shuttered the doors on most of its nationwide nuclear plants.
A country that planned to increase its nuclear power generation to 40% by 2017 now draws less than 2% of its energy from nuclear power.
And Japan isn’t alone.
Germany dropped its nuclear energy consumption from 25% in 2011 to 12% in 2019. Other countries have discontinued or banned nuclear energy entirely, like Australia, Italy and Lithuania.
The future of uranium is uncertain. As demand for this type of energy increases in some countries, others are actively reducing or eliminating their consumption.
Uranium is a divisive material and investment. Australian investors interested in this commodity should familiarise themselves with the potential dangers before buying in.
Whether this commodity belongs in your portfolio depends on how you see the nuclear sector growing in the coming years. Review your brokerage account options across multiple platforms to find the account that best meets your needs.
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