What are uranium shares?
Uranium shares represent stocks in companies involved in the exploration, mining, or processing of uranium, a heavy metal primarily used as fuel for nuclear power. Uranium is a naturally occurring radioactive element found in soil, rocks, and water. It has a silvery-white appearance and is relatively rare. Its significant value lies in its ability to undergo nuclear fission, a process in which atoms split and release large amounts of energy, which is then harnessed to generate electricity.
Investors and traders follow uranium shares closely because of uranium’s critical role in the clean energy transition and the limited number of companies involved in its production.
What is uranium used for?
Uranium’s primary use is in nuclear reactors to produce electricity. However, it also has specialised applications, including the production of medical isotopes, powering naval vessels like submarines, and use in defense technology.
The key isotope used in nuclear power is U-235, which is the only naturally occurring fissile isotope. This means it can sustain a nuclear chain reaction. However, it makes up just 0.72% of natural uranium.