Agnico-Eagle Mines Limited (USA) (AEM), Alamos Gold Inc (AGI), Cameco Corporation (USA) (CCJ): 3 Affordable and Promising Canadian Mining Stocks

A valuable Canadian uranium stock

Cameco Corporation (USA) (NYSE:CCJ) is not a small or little known company. The only reasons I included it is because it trades at $21 at the moment. It is the world’s largest publicly traded uranium producer and is based in Saskatoon, Saskatchewan. It was the world’s third-largest uranium producer in 2011 and accounted for more than 16% of global production. Cameco has uranium-mining operations in Nebraska and Wyoming in the U.S., Ontario, Canada and also in Kazakhstan.

The need for power and alternative sources of energy is ever increasing. Countries like India and China are hugely dependent on uranium for electricity and this will keep companies like Cameco Corporation (USA) (NYSE:CCJ) in business for a very long time to come.

This is one of the reasons why Cameco Corporation (USA) (NYSE:CCJ) is a good long-term investment option. With a market cap of approximately $8.3 billion, it is a very large uranium stock. Its profitability is average and that is because of the difficulties in selling uranium to international vendors. Uranium sales are limited by nuclear treaties unlike other material sales. This makes uranium stocks a little dicey and I can’t justifiably compare it with a gold-mining or iron ore mining stock.

However, Cameco will find buyers for uranium through legal channels in Japan, China, India, South Korea and even Brazil. All of these countries experience significant energy deficits and have been on the lookout for alternative sources of energy, which includes nuclear-generated electricity. I see Japan, South Korea and China effortlessly increasing their uranium imports in the coming years. If Cameco Corporation (USA) (NYSE:CCJ) manages to grab some deals, its profitability will increase dramatically.

Which one is the best?

Cameco, Alamos Gold Inc (NYSE:AGI) and Agnico-Eagle Mines Limited (USA) (NYSE:AEM) sell for $30 or less. Of these, Alamos Gold is the cheapest. Cameco on the other hand is the most popular of these three stocks and costs only $21. Investing in a uranium stock is a good idea, especially when every country is looking for an alternative source of energy.

Jaiyant Cavale has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article 3 Affordable and Promising Canadian Mining Stocks originally appeared on Fool.com.

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