We are nearing the end of the first month of 2024 and most uranium stocks are already up at least 25% year-to-date as the prices for the commodity top AU$140 per kilogram for the first time in 16 years. 

At its core, investing in uranium mining is all about who has the biggest resource with the best grades and the companies ability to extract the uranium at the lowest cost. In this series, we will be looking at which uranium explorers, producers and developers should be at the top of your watchlist in 2024. 

Which Uranium Socks Are Worth the Investment? 

1. Deep Yellow Limited (ASX: $DYL)
2. Paladin Energy Limited (ASX: $PDN)
3. Aura Energy (ASX: $AEE)
4. Global Uranium And Enrichment (ASX: $GUE)
5. BHP Group Limited (ASX: $BHP).

The best uranium stocks are identified because of their capacity to meet anticipated demands in the industry, investor interest and the increase in price over the last year. 

Data as at Thursday, 25 January 2024. 

Deep Yellow Ltd (ASX: $DYL)

Deep Yellow Limited (ASX: $DYL) stands out in the uranium sector due to its strategic operations in Namibia's uranium-rich landscape and guided by the experienced leadership of John Borshoff. Deep Yellow’s key project, Tumas, is located in one of the most mining-friendly jurisdictions in Africa and the company is well-positioned to capitalise on the growing global demand for nuclear energy. 

Key Insights:

• CEO John Borshoff brings more than 40 years of experience in uranium mining. 
• Namibia's established uranium mining industry presents a favourable environment for Deep Yellow's operations.
• The collaboration with JOGMEC highlights industry confidence and provides financial support.
• Deep Yellow plans to develop Tumas into an operation with a mine life of more than 30 years and the capacity to produce 1 632 932 million kilograms a year of uranium oxide. 
• Significant insider ownership, notably by Sprott, reflects confidence in Deep Yellow's long-term growth potential.

Data as at Wednesday, 24 January 2024.

Technical Analysis for Deep Yellow Limited (ASX: $DYL):

ASX listed Deep Yellow has been on an upward movement since mid-2023. Despite encountering resistance, $DYL displayed a bullish recovery from its December low. Since, $DYL has breached its previous high in January 2024 and now positioned the company for long term momentum. Deep Yellow Limited shows technical strength and operational capabilities and marks it as a stock to consider for investors looking to enter the uranium market in 2024. 

Paladin Energy Ltd (ASX: $PDN)

Paladin Energy Ltd (ASX: $PDN), is possibly approaching a major achievement in its business and here is why you should consider adding $PDN to your portfolio. 

Paladin Energy has uranium mining projects across Australia, Canada, and Africa, and is showing promising signs of a significant turnaround. Following a reported loss of over 16.6m AUD for the financial year ending 30 June 2023, the company is now at a crucial juncture, with analysts forecasting a move into profitability with a projected profit of 72.9m AUD by 2024. 

This expected shift to breakeven, potentially within the next year, is based on an impressive anticipated annual growth rate of 39%. Such growth points to the company's potential in a revitalising uranium market. Additionally, Paladin's prudent financial management, evidenced by a moderate debt-to-equity ratio, suggests an interesting approach to sustaining its operations and reducing investment risks. 

These factors, combined with the company's global reach and the increasing demand for uranium, position Paladin as a potentially wise choice for investors looking at long-term opportunities in the energy sector.

Key Insights:

• Paladin is projected to reach breakeven by 2024, indicating a potential turnaround in financial performance.
• Anticipated 39% annual growth rate.
• Paladin's presence in diverse geographic locations offers multiple avenues for revenue and growth.

Data as at Wednesday, 24 January 2024.

Technical Analysis for Paladin Energy Ltd (ASX: $PDN):

Paladin Energy's chart shows an emerging uptrend since mid-August 2023, with the stock now trading above its 50, 100, and 200-day moving averages and indicating strong support. Recent movements suggest a resilient buying interest, pointing to potential growth with minimal resistance until 1.760. Investors should observe for continued bullish signs, especially considering the possibility of approaching the 2011 high of 2.408.

Aura Energy Ltd (ASX: $AEE)

ASX and AIM listed uranium and future metals explorer Aura Energy (ASX: $AEE), are on the cusp of becoming a fully-fledged producer of uranium. $AEE is focused on its Tiris Uranium Project in Mauritian, Africa - which is quickly approaching production status. 

Key Insights: 

• The company aims for more resource growth at Tiris which is one of the lowest cost uranium projects in the world. 
• Aura Energy is on the verge of uranium production with a market at 16-year highs. 
• Aiming to build a world-class uranium province in Africa. 
• The company aims for more resource growth at Tiris which is one of the lowest cost uranium projects in the world. 

Data as at Wednesday, 24 January 2024.

Technical Analysis for Aura Energy Ltd (ASX: $AEE):

Aura Energy's stock has shown a recovery narrative, bouncing back from a low of 0.160 in May to reach the 0.355 mark in October, which is close to its previous peak in February. With a bounce from the support zone at 0.220 in January 2024, Pac Partners has given the company a speculative buy rating with a target price of $0.36 AUD. 

Global Uranium and Enrichment Ltd (ASX: $GUE)

Global Uranium and Enrichment Limited (ASX: $GUE) (formerly known as Okapi Resources (ASX: $OKR)) is a uranium explorer and developer with projects across four uranium districts in the USA & Canada. This titan in the mining world has made strategic moves to secure its place in key uranium-rich districts in North America. 

With a scoping study underway, $GUE is drawing attention for its forward-thinking stake in Ubaryon's next-generation enrichment technology and its acquisitions, such as the Hansen uranium deposit. $GUE's enrichment technology uses a chemical process which can make uranium enrichment more cheaper, efficient and safer than other enrichment technologies. 

Key Insights:

• $GUE obtains permit for US uranium project, with approval allowing up to 20 new drill holes annually over the next five years. 
• Global Uranium and Enrichment Ltd has secured influential positions in North America's uranium hotspots, such as Colorado's Tallahassee Creek district and Canada's Athabasca Basin.
• The only other ASX uranium peer with enrichment technology is capped at $1BN AUD with 51% ownership of its technology. 
• Highly prospective uranium exploration ground in Canada’s largest uranium producing district. 
• Significant stakes in strategic uranium deposits like Colorado's Hansen deposit bolster GUE's resource base, priming it for growth.

Data as at Wednesday, 24 January 2024.

Technical Analysis for Global Uranium and Enrichment Ltd (ASX: $GUE)

Global Uranium and Enrichment Ltd (ASX: $GUE) displayed a distinct technical pattern, rebounding from a low of 0.085 AUD in September 2023 to a high of 0.175 AUD in January 2024. $GUE is currently trading above its key moving averages, including the 50, 100, and 200-day, at 0.1127, 0.1198, and 0.1178 respectively. 

BHP Group Ltd (ASX: $BHP)

BHP Group Ltd (ASX: $BHP) is a mining giant that commands a significant presence in the global resources sector. The company has a market capitalisation of $257 billion and according to the ASX, BHP stands as the largest constituent of the ASX 200, exerting considerable influence on the broader market.

Key Insights:

• BHP's core earnings stem from its substantial production of various resources, with iron ore playing a pivotal role. These diversified revenue streams mitigate the impact of price fluctuations in any single commodity, enhancing $BHP's stability.
• In FY23, $BHP reported robust underlying earnings, with iron ore contributing significantly. This positions the company well to maintain its dividend payments. 
• Analysts' forecasts project earnings per share (EPS) of $4.17 AUD in FY24 and $3.77 AUD in FY25, potentially leading to annual dividend yields of 6.2% in FY24 and over 6.1% in FY25, making $BHP an attractive choice for income-seeking investors.
• BHP Group’s sheer size and dominance in the ASX 200 highlight its status as a stalwart investment choice. While it may not promise extraordinary returns, BHP offers the reliability and dependability of a mining industry leader.

Data as at Wednesday, 24 January 2024.

Technical Analysis for BHP Group Ltd (ASX: $BHP)

BHP Group Ltd (ASX: $BHP) witnessed a significant market movement, initially marking a low of 44.06500 AUD on November 8, 2023. Subsequently, the stock surged to a high of 50.8400 AUD on December 28, 2023. However, in the subsequent days, profit booking from short-term traders occurred, leading to a dip to 43.55 AUD on January 18, 2024, where buying interest emerged. 

Currently, ASX listed $BHP is trading above its 100 and 200-day moving averages, positioned at 45.3915 and 46.1777 AUD, respectively. The analysis suggests potential for the stock to surpass its recent high and continue its upward trajectory to touch 50.840 AUD, with an outlook for further gains given the absence of resistance beyond that point.

Why These Uranium Stocks Deserve Your Attention

Why should investors be turning their focus to these five uranium stocks? The uranium market is currently red-hot, with prices soaring to 16-year highs in January 2024, breaking the AU$140 per kilogram barrier. 

This surge in uranium prices is driven by the global shift towards decarbonization and renewable energy sources, making nuclear power an attractive and essential component of the clean energy transition. As uranium contracting volumes reach their highest levels since 2012 and demand continues to grow, the market is heating up rapidly, creating a favourable environment for uranium mining companies to thrive and investors to take notice of this sector.

Where to Buy Uranium Stocks

Investing in uranium is possible through the purchase of shares of nuclear sector companies on the following platforms: 

• Stake: Stake official website: https://hellostake.com/au 

• Interactive Brokers: Interactive brokers official website: https://www.interactivebrokers.com/en/home.php 

• CommSec: Commsec official website: https://www.commsec.com.au/ 

• Nabtrade: Nabtrade official website: https://www.nabtrade.com.au/ 
• Bell Direct: Bell Direct official website: https://www.belldirect.com.au/smarter/