Hillcrest Energy Technologies. (CSE: HEAT)
From concept to commercialization, Hillcrest is investing in the development of energy solutions that will power a more sustainable and electrified future.
Commodity markets struggled in 2023, facing challenging times with most commodity prices, including copper and oil, under pressure due to rising interest rates and uncertain global economic recovery prospects, except for uranium prices which saw significant increases. The rise in uranium prices can be attributed to severe restrictions in its supply post the Russia-Ukraine conflict, as well as its crucial role in the clean energy transition.
On the Toronto Stock Exchange, two commodity stocks have risen 20% and 40% respectively year to date. Apart from strong operational and financial fundamentals, one of the key drivers behind the stock rises is the growing demand for clean energy solutions.
Cameco (TSX: CCO) stock has surged by 91% in the past year and is already up 20% year to date, driven by the ongoing increase in uranium spot prices. However, investor interest has also been piqued by the company’s initiatives to expand its business through partnerships with renewable energy companies. As nuclear power becomes the preferred source to aid in the transition to clean energy, interest on Cameco stock has significantly increased.
Cameco is the world’s largest publicly traded uranium producer. Despite nearly 500 nuclear power plants worldwide, dozens more are under construction in densely populated countries such as China and India. This indicates a continued increase in demand for uranium. For investors seeking further growth opportunities, Cameco stock is undoubtedly poised to be a strong choice, not only in 2024 but beyond.
Lundin Mining (TSX: LUN) is a Canadian copper producer, with copper accounting for nearly 63% of the company’s annual production. The significance of copper in economic activities is evident, as its excellent conductivity makes it a key component in power generation, transmission, and distribution systems for renewable energy. In fact, copper finds wide application in electrical wires, cables, busbars in solar photovoltaic systems, wind turbines, and more.
Copper is also indispensable in energy storage devices such as batteries and supercapacitors, and plays a crucial role in integrating renewable energy sources like solar and wind power into the grid. Furthermore, its high conductivity and corrosion resistance make copper an ideal choice for renewable energy applications, enabling efficient energy transfer with minimal energy loss. This fundamental role is driving Lundin’s stock price to rise by 40% this year.
The company achieved record copper production in 2023, and is aiming to achieve even higher production in 2024, making investors excited. For those optimistic about the prospects of clean energy, Lundin Mining is certainly a stock worth considering to buy.
