Clean, Renewable, Green, & Sustainable Energy Stocks Are Shining Bright In 2021
The inauguration of President Joe Biden has brought about renewed interest in renewable energy penny stocks. In Biden’s plan for a “Clean Energy Revolution*,” the administration has placed a critical focus on net-zero emissions. The goal is for an economy where this is the case no later than 2050.
Biden has planned to invest $400 billion over ten years. This is one part of a larger mobilization of public investment in clean energy and innovation. This could lead to sweeping infrastructure spending programs. Initiatives like this have helped fuel speculative momentum in countless penny stocks in the renewable & sustainable energy industries. The programs are designed to build the necessary framework to deliver on the overall climate initiative.
“I mean today [the U.S. is] two-thirds fossil fuels. And in 14 years, its going to be fossil fuel-free? I can tell you that’s a signal that all roads are going to have to go by nuclear plants, I think, if you’re ever going to get there.”
Cameco Corp. (NYSE: CCJ) CEO Tim Gitzel, Feb 2021 Earnings Call
Uranium is needed to produce nuclear power. However, the result is a renewable, sustainable energy source. At the very least, it could be considered a bridge fuel of sorts—a sustainable energy source during a transition from carbon-heavy to net-zero carbon in the future.
Energy Penny Stocks To Watch
Other supporters have further emphasized nuclear power’s importance. There’s more “political acceptance,” according to billionaire investor & Microsoft founder Bill Gates.
“Nuclear has actually been safer than any other source of [power] generation…There’s a new generation [of nuclear power] that solves the economics, which has been the big, big problem…As we solve these engineering problems and cost problems, I hope people will be open-minded to see how incredibly safe the next generation will be,” Gates said in a CNBC interview in February.
There is clear and obvious support from the government and public markets. As such, nuclear energy stocks could be some of the best penny stocks to watch. Here’s a list of a few names that’ve stoked investor interest recently.
Best Energy Penny Stocks To Watch #1: Denison Mines Corp.
Denison has been one of the more popular penny stocks to watch in the uranium space. Though shares pulled back on Tuesday, a look at the last few months paints a different picture. In fact, since election day (Nov. 6), shares of DNN stock are up over 240% to-date. The massive rally that nuclear energy stocks have seen helped lift most names in 2021, Denison included.
The company recently announced its inclusion in the S&P/TSX Composite Index this wee. This broadens the market exposure of the company and further builds upon the company’s strategy to build lasting value. CEO David Cates said that the company is “well positioned to support the clean-energy transition through the future development of our flagship Wheeler River uranium project in the Athabasca Basin region of northern Saskatchewan.”
Denison’s technical team recently achieved a significant milestone. It received independent confirmation of “Proof of Concept” to apply the In-Situ Recovery mining method at its Phoenix deposit. This allows the company to recover minerals from ore by dissolving them and pumping the solution to the surface where the minerals can be recovered. The ore, in turn, stays put, which solves many of the financially burdensome issues that would’ve otherwise been a factor.
Denison has low-cost assets under its umbrella and made recent progress at Wheeler River (see DNN press releases). With this, DNN could be one of the uranium mining stocks to watch right now.
#2: Nexgen Energy
Another nuclear energy penny stock gaining ground in 2021 is Nexgen Energy. The company owns a portfolio of prospective uranium exploration assets in the Athabasca Basin in Saskatchewan, Canada. This includes a 100% interest in Rook I, which is also the location of the Arrow Deposit. The company not only develops uranium projects but also invests in other companies.
Similar to most mining companies, cash is king, especially when it comes down to operational success. NexGen recently closed a financing round of $150 million this month. The use of proceeds has been earmarked for the expanded development of Rook I. The company’s previously delivered Feasibility Study on Rook I effectively positioned NexGen to transition into the next stage of the project.
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On top of this, one of the companies that Nexgen has a major holding in, IsoEnergy ltd. (OTC: ISENF) has also been making progress. This includes the appointment of a new CEO, Tim Gabruch. He was actually the Vice President of Commercial at Denison Mines. Gabruch also acted as Chief Commercial Officer of Uranium Participation Corporation. Additionally, he will serve as a uranium marketing advisor to NexGen Energy. This further solidifies the relationship between the two companies.
#3: Uranium Energy Corp.
This week, Uranium Energy Corp. helped lead the charge for smaller uranium stocks after its latest update. The company announced establishing a physical uranium initiative and a quarterly update for the 6 months ended January 31st. Uranium Energy reported a $65.8 million cash and equity position on its balance sheet, among key highlights. The company was able to reduce its debt from $18 million to $10 million under a credit facility.
Uranium Energy entered into agreements totaling $10.9 million to purchase 400,000 pounds of uranium concentrates at ConverDyn in Metropolis, Illinois. Management said it plans to supply the U.S. Uranium Reserve outlined in a report published by the U.S. Department of Energy. This is a 10-year $1.5 billion program to purchase U.S. origin uranium that was newly mined.
With this plan outlined, shares of UEC stock surged on Tuesday. There was a pull-back from intra-day highs of $3.67. The uranium stock has still managed to make a move of more than 290%. That’s only since election day. Will this trend continue through the remainder of March?