Five of the Top Uranium Stocks to Buy and Hold with Recent Russian Import Ban

May 7, 2024
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Atomic Minerals Corporation

TSXV: ATOM | OTC: ATMMF

By Ty Hoffer, Contributing Columnist

Over the last few days, Congress passed the Russian uranium import ban, which now unlocks about $2.7 billion to expand U.S. nuclear fuel production. All of which is a strong catalyst for uranium stocks, such as Atomic Minerals Corporation (TSXV: ATOM) (OTC: ATMMF), Uranium Energy Corp. (NYSE: UEC), Energy Fuels Inc. (NYSE: UUUU) (TSX: EFR), Cameco Corp. (NYSE: CCJ) (TSX: CCO), and Denison Mines Corp. (TSX: DML) (NYSE: DNN).

“The broader package also includes a ban on federal licenses for reactor fuel imported from or produced by entities controlled by Russia while adding China and China-controlled entities to the import blacklist,” according to UtilityDive.com. In addition, according to MarketWatch.com, “A ban on U.S. imports of Russian uranium is set to shake up the market for nuclear power, and lift prices back above $100 a pound for the nuclear fuel which has been tight on supplies.”

Look at Atomic Minerals Corporation (TSXV: ATOM) (OTC: ATMMF)

Atomic Minerals Corporation announced the results of a detailed analysis of stratigraphic and gamma ray logs from the historical oil well log data at the Dolores Anticline Project in SW Colorado.

This initiative underlines the Company’s commitment to integrating advanced geophysical techniques to refine its exploration strategies and enhance the geological understanding of its central uranium prospects.

“Utilizing historical gamma ray logs for a refined geological analysis at the Dolores Anticline enables us to pinpoint geological formations and evaluate their uranium potential with precision,” remarked Clive H. Massey, President & CEO of Atomic Minerals. “This advanced technology bolsters our efforts in uranium exploration and optimizes our strategy for assessing our broad portfolio. We are particularly grateful for the support from the communities in Monticello and San Juan County, which is crucial as we advance our projects.”

Clive H. Massey, President & CEO of Atomic Minerals

Gamma Ray Logs in Geophysical Evaluation

Atomic Minerals analyzed the stratigraphic logs or stratigraphic estimates in conjunction with the gamma ray logs from historic oil and gas holes drilled throughout the Dolores Anticline to zero in on the favorable Moss Back member of the Chinle formation. The Moss Back hosts the bulk of the Triassic uranium mineralization within the salt anticlines throughout the Paradox Basin within the Colorado Plateau, America’s premier uranium mining district. The Chinle formation has produced 120 million pounds of U3O8 to date.

A total of 93 Colorado oil and gas hole locations were found in the database and were analyzed: 21 holes were permitted but never drilled, 31 holes either did not have a gamma log or were cased through the Chinle, 1 was collared below the base of the Chinle and 1 was lost before intersecting the Chinle. Of the remaining 39 holes, 19 recorded anomalous gamma ray values associated with the suspected base of the Chinle formation, a success rate of almost 50%.

A review of the plan map of the western arcuate belt of the Lisbon Valley Anticline, the type location for the Chinle uranium deposits, shows the uranium occurred in distinct deposits along the 17 km long belt, some clustered and others widespread, most notedly with barren gaps within the deposit clusters.

Uranium Projects in SE Utah / SW Colorado A Rich Mining Heritage

Southeastern Utah / Southwesten Colorado hosts a number of prominent uranium districts for both Morrison and/or Chinle uranium deposits, with the majority of the Chinle deposits intimately associated with the salt anticlines. With a long history of uranium exploration, development and production and fully permitted uranium mill, this area of the Colorado Plateau is poised to take advantage of the current uranium boom and the recently announced tarrif on Russian uranium imports.

Community and Operational Insights in Moab and Monticello

Exploration activities at the SW US Projects are feasible throughout the year, albeit with some interruptions due to potential seasonal muddy conditions during the rainy season. The town of Moab, situated near the 10 Mile project and the town of Monticello near the Harts Point and Dolores Projects, provide a comprehensive array of essential services and infrastructure, from healthcare and education to retail and lodging. This supportive community backdrop ensures a steady supply of skilled labor and sufficient resources, such as power and water, to sustain continuous mining operations.

Dolores Anticline

As a result of the Dolores database thorough analysis, the Company is now laying out drill hole locations, guided by the oil and gas drilling, to allow commencement of the permitting process for summer drilling.

The Dolores claim group (SC claims) lies in San Miguel County, Colorado, on the northern end of the Dolores anticline and proximal to the southern end of the Uravan mineral belt. The Uravan (a contraction of uranium-vanadium) mineral belt produced 75.5 million pounds of uranium oxide and 331.8 million pounds of vanadium from the Salt Wash member of the Jurassic Morrison formation during the years between 1947 and 1979, from more than 1,200 mines.

While these mining claims are located on the southern end of the Uravan, they were located in an area considered to be very favourable for the concentration of uranium mineralization in the Moss Back member of the Triassic-age Chinle formation and the Permian Cutler formation, as well as the Salt Wash member of the Morrison formation. Atomic Minerals’ geological consultants have confirmed the presence of uranium mineralization in several prospects in the Dolores River Canyon, where the favourable Moss Back member has been exposed and appears to have a wide extent, which guided the location of the SC claim block.

In the late 1970s, widely spaced exploration drilling for uranium by the Hunt Oil Company and Newmont Mining Company confirmed the presence of the highly favourable Moss Back member of the Chinle formation on this anticlinal structure. Gamma ray logs of a number of these holes reported spikes within the Moss Back.

Other related developments from around the markets include:

Uranium Energy Corp. applauds the vote by the United States Senate for passing H.R. 1042, a bill to ban Russian uranium imports into the United States, by unanimous consent. The House of Representatives passed the bill in December of 2023. Senator Barrasso of Wyoming stated: “I have fought for years to end America’s reliance on Russian nuclear fuel. Our efforts have finally paid off with passage of our bill to ban these imports once and for all. Wyoming has the uranium to replace Russian imports, and we’re ready to use it. Our bipartisan legislation will help defund Russia’s war machine, revive American uranium production, and jumpstart investments in America’s nuclear fuel supply chain. This is a tremendous victory. I’m grateful to members of both parties for helping get this over the finish line.”

Energy Fuels Inc.reported its financial results for the quarter ended March 31, 2024. It recorded net income of over $3 million: During the three months ended March 31, 2024, the Company earned net income of $3.64 million, or $0.02 per common share, including operating income of $2.02 million. It also recorded a robust balance sheet with over $220 million of liquidity and no debt: As of March 31, 2024, the Company had $222.54 million of working capital including $54.78 million of cash and cash equivalents, $140.80 million of marketable securities (uranium stocks and interest-bearing securities), $28.25 million of inventory, and no debt. In addition, the company sold 300,000 pounds of uranium concentrates at a weighted average price of $84.38 per pound for $25.31 million, which resulted in a gross profit of $14.26 million and an average gross margin of 56%.

Cameco Corp. reported its consolidated financial and operating results for the first quarter ended March 31, 2024, in accordance with International Financial Reporting Standards (IFRS). “In the first quarter operational performance was strong across our uranium, fuel services and Westinghouse segments. Financial results are in line with the 2024 outlook we provided, which has not changed, and are as expected, reflecting normal quarterly variability and the required purchase accounting and other non-operational acquisition-related costs for Westinghouse,” said Tim Gitzel, Cameco’s president and CEO.

Denison Mines Corp.reported earnings per share from continuing operations of $0.11 for the year ended December 31, 2023, representing a 450% increase from the 2022 EPS of $0.02, driven by the recognition of a significantly larger gain on the Company’s physical uranium holdings offset by operating expenses primarily related to the Company’s advancement of its flagship Wheeler River Project. David Cates, President and CEO of Denison commented, “The sheer magnitude of Denison’s numerous operational accomplishments in 2023 reflects an extraordinarily productive time for our Company. With the completion of the Phoenix Feasibility Study in June, we have cemented Phoenix’s position as a globally leading uranium development project, showcasing Denison’s industry leadership in the de-risking and application of the In-Situ Recovery mining method in the Athabasca Basin.”

Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for Atomic Minerals Corporation by Atomic Minerals Corporation. We own ZERO shares of Atomic Minerals Corporation. Please click here for disclaimer.

Contact:
Ty Hoffer
Winning Media
281.804.7972
[email protected]

Disclosure: James Hyland is a director and shareholder of Atomic Minerals Corp., a company mentioned in this article.

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MiningIR hosts a variety of articles from a range of sources. Our content, while interesting, should not be considered as formal financial advice. Always seek professional guidance and consult a range of sources before investing.
James Hyland, MiningIR
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