ASX uranium stocks: Companies, risks & performance | finder.com.au

Uranium stocks in Australia

It’s a low-carbon alternative to fossil fuel but attitudes towards nuclear energy have soured in recent years.

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Australia is the third biggest uranium producer and holds around one third of the world's uranium resources. 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 such as gold or silver.

This commodity is best known for its use in nuclear energy production but has a destructive history. In recent years, uranium prices have fallen amid oversupply issues as Kazakstan has ramped up production and the Fukushima disaster led to plunging sentiment toward nuclear energy use.

Investors should explore how this material is mined and used before they invest.

What is uranium?

Uranium is a radioactive heavy metal used to fuel nuclear reactors and craft nuclear weapons. It’s mined in a number of countries, but a majority of the world’s uranium supply comes from Kazakhstan, Canada and Australia. Kazakhstan commands the market and was responsible for a whopping 43% of the world’s uranium supply in 2019.

Uranium stocks are stocks from companies involved in the mining, refining and distribution of global uranium.

Why invest in uranium stocks?

As oil production and consumption continue to trend downward, the world has begun to look to alternative energy sources — and nuclear energy is a big contender.

The World Nuclear Association reports that 30 countries worldwide are working to build nuclear power programs, including China, India, Israel, Norway, Saudi Arabia and Uganda, to name a few.

Uranium fuels nuclear energy. And nuclear energy presents a low-carbon alternative to fossil fuel. The International Energy Agency states that the world must double its nuclear power capacity by 2050 to meet climate change emission-cutting targets.

Uranium is poised to play a big role in the future of global energy production. Investors 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

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. Investors interested in this commodity should familiarize themselves with the potential dangers before buying in.

Uranium stocks

Uranium is a global resource mined and produced by numerous international companies. For well-rounded uranium portfolio exposure, prepare to invest in both Australian and international stocks.

ASX uranium stocks

International uranium stocks

  • Areva SA (ARVCY)
  • Aura Energy (AUEEF)
  • Berkeley Energia (BKLRF)
  • Fission Uranium (FCUUF)
  • Paladin Energy (PALAF)

Which ETFs track uranium?

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:

  • 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)

Compare trading platforms

To invest in uranium stocks, you need a brokerage account. Review your options.

Data updated regularly
Name Product Standard brokerage fee Inactivity fee Markets International
eToro Share Trading (US stocks)
US$0
US$10 per month if there’s been no login for 12 months
US shares
Yes
Zero brokerage share trading on US stocks with trades as low as $50.
Join the world’s biggest social trading network when you trade stocks, commodities and currencies from the one account.
Superhero share trading
$5
No
ASX shares, ETFs
No
Pay zero brokerage on all Australian ETFs.
Trade ASX stocks with a flat $5 commission fee and a low minimum investment of just $100.
Bell Direct Share Trading
$15
No
ASX shares, mFunds, ETFs
No
Exclusive: New customers who open an account with Bell Direct through Finder will pay no brokerage fees on the first five stock or ETF trades until April 30, 2021 (T&Cs apply).
Bell Direct offers a one-second placement guarantee on market-to-limit ASX orders or your trade is free, plus enjoy extensive free research reports from top financial experts.
IG Share Trading
Finder Award
IG Share Trading
$8
$50 per quarter if you make fewer than three trades in that period
ASX shares, Global shares
Yes
$0 brokerage for US and global shares plus get an active trader discount of $5 commission on Australian shares.
Enjoy some of the lowest brokerage fees on the market when trading Australian shares, international shares, plus get access to 24-hour customer support.
CMC Markets Stockbroking
$11
No
ASX shares, Global shares, mFunds, ETFs
Yes
$0 brokerage on global shares including US, UK and Japan markets.
Trade up to 9,000 products, including shares, ETFs and managed funds, plus access up to 15 major global and Australian stock exchanges.
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Important: Share trading can be financially risky and the value of your investment can go down as well as up. “Standard brokerage” fee is the cost to trade $1,000 or less of ASX-listed shares and ETFs without any qualifications or special eligibility. If ASX shares aren’t available, the fee shown is for US shares. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.

Bottom line

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.

Frequently asked questions

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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