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The European Union voted this month to include nuclear energy in its green energy mix. MEPs voted in a majority to allow companies to designate nuclear projects as “green”. Although this measure won’t increase nuclear projects in Europe immediately, it could pave the way for it. Germany, and other countries that have abandoned nuclear power, can now cite EU policy if they wish to resume their programs.
The EU’s latest move is one of many developments that are positive for nuclear energy. The UK is the largest supplier of oil and gas. ramping up China already has large investments in nuclear energy. There is growing consensus that nuclear energy will play a key role in the future energy mix.
The natural question for investors is: “Can we get a piece of the action?” There are very few pure-play nuclear power companies. The U.S.’s Duke Energy There are some power plants in operation, but these are mixed with oil or gas operations. There are very few pure plays.
Many nuclear lovers choose to invest their money in uranium mining stocks. 99% of the world’s uranium goes toward developing nuclear power, which makes uranium more of a nuclear ‘pure play’ than a utility that is only partially nuclear. This article explores the rise in nuclear energy. I also look at one Canadian nuclear stock.
Why Nuclear is gaining in Popularity
Because other energy sources are becoming more expensive, nuclear energy is growing in popularity. Fossil fuels are going up in price, and renewable energy isn’t producing enough electricity to make up the difference. One solution is nuclear, which can produce large amounts of energy using a high-quality fuel source (uranium). Although nuclear plants can be expensive to construct, the fuel is very affordable. Nuclear energy is a renewable energy source that emits no greenhouse gases. Its popularity took a hit after the Fukishima reactor incident in Japan, but it’s making a comeback now due to the pressing need for more energy.
Consider this Canadian uranium stock
If you’re looking for stocks that give you exposure to nuclear energy, you could consider Fission Uranium Corp (TSX:FCU). It’s a company that mines for uranium in Alberta. This stock trades on the TSX at $0.60 and is a genuine penny stock.
Fission Uranium Corp. has not yet reached profitability. It is currently in the exploration phase. Its corporate structure is not yet clear. website The following financial projections are available for the full-year 2022:
- $9.57 billion in operating expenses (OPEX), the company’s day-to-day expenses
- $2.6 billion in cash flow after taxes, or cash flow after taxes are paid.
- $1.5 Billion in net present value after tax (NPV), which refers to the value of cash flows adjusted for interest rate.
- A 25% internal return rate (IRR), which means cash flows are covering capital costs by a healthy margin, is 25%
FCU is the owner of Triple R, which is estimated to contain 2.2 million tonnes uranium. FCU claims that the project is expandable to produce more uranium. FCU isn’t generating any revenue yet, and is therefore an extraordinarily risky, speculative play. I certainly won’t be investing in it, but its very existence proves that nuclear energy investments are out there, and can be bought on the TSX.