Top 10 Largest Uranium Miners by country
(Source: World Nuclear Association)
Canada and Australia combined produce 51% of the world’s uranium from uranium mines. Notice that China is far down on the list at position #10. The growing demand from China for uranium in order to power their nuclear plants will provide growth opportunities for Australian and Canadian uranium miners. Don’t forget about the US as well. Clocking in at position #8, the United States must take similar actions as did the Chinese to support their growing nuclear demand.
Top 5 Largest Uranium Miners by Market Capitalization
Must trade on a US Stock Exchange. I plan to calculate the market caps in terms of US dollars for foreign traded stocks in my next uranium post. Must actively operate in uranium production/mining industry.
1. BHP Billiton LTD (BHP) - $135 billion
2. Rio Tinto plc (RTP) - $72 billion
3. Cameco Corp. (CCJ) - $13 billion
4. USEC Inc. (USU) - $1.26 billion
5. Fronteer Development Group Inc. (FRG) - $800 million
There are two ways to go about uranium investing: either invest in pure uranium miners or diversified industrial miners. Small cap uranium stocks may offer a larger upside, but your risk is much greater. Diversified miners can take advantage of economies of scale, plus they own more capital, helping to preserve and operate existing uranium mines. A safer investment would be in a diversified industrial metals and materials miner that’s highly levered towards uranium.
Will uranium stocks outperform in 2007?