Will These Energy Penny Stocks Climb Next Month?
There are a few factors at play that are affecting energy penny stocks right now. The first and most obvious is the reopening of the Suez Canal. A massive tanker ship was lodged in one of the world's busiest shipping ports for roughly a week before being freed on March 29th. While it was stuck, no ships could pass through the canal. This led to increased oil and gas prices and worries about the supply of certain goods around the world in the interim.
While this may not be the only factor affecting energy penny stocks, it is high on the list during the last week of March. With most of the public still at home due to the pandemic, the demand for goods and raw material transport is extremely high. Aside from this, often, the summer is when resources begin to be consumed at a higher rate.
This could be due to increased travel, the resumption of industrial projects, and more. If you're looking for penny stocks to buy right now in this space, understand that volatility has been a big risk factor. What's more, aside from traditional oil and gas, green and renewable energy stocks have been a big focus for traders. Thanks to the Biden administration's spending plan, everything from solar & wind to nuclear & even LNG is getting some attention. We also can't forget the push for more electric vehicles either.
Energy Penny Stocks to Watch
So when it comes to energy penny stocks, the watch shouldn't be limited to only fossil fuels at this point. Here's a list of 3 that have taken a focus on alternatives.
- American Battery Metals Corp. (OTC: ABML)
- American Resources Corp. (NASDAQ: AREC)
- Denison Mines Corp. (NYSE: DNN)
Lithium Ion Batteries Give Penny Stocks A Boost: American Battery Metals Corp. (OTC: ABML)
As its name suggests, American Battery Metals Corp. is a producer of metals used in common battery applications. This includes lithium-ion battery recycling as well as advanced battery metal extraction. Last week, the company announced updates regarding its lithium-ion battery recycling pilot plant facility.
American Battery completed the acquisition of around 55-acre-feet/year of water from three different sellers. This should allow the facility to have the proper water flow to operate at full capacity. It's one of many updates but an important one to consider since American Battery only broke ground on the facility earlier this year.
Back in January, American Battery Metals filed an S-3 Registration to raise up to $250 million. Fast-forward a bit and two weeks ago, this filing was declared effective, making this financing a reality. CEO Doug Cole stated that "we are in a great position as we have the capital necessary to fund our operations and to construct phase one of our lithium-ion battery recycling facility in Fernley, Nevada. Our capital needs going forward can be addressed in stages as we advance through construction phases of the facility. We will be prudent on how we use our cash and access capital in the future."
This week, the company was invited to join the Critical Materials Institute advisory board as a representative of the lithium-ion battery recycling community. This could give American Battery direct access to a network of industry leaders. So we'll have to see how the company leverages this to its advantage.
An Angle On ESG Penny Stocks: American Resources Corp. (NASDAQ: AREC)
American Resources Corp. is a supplier of high-quality resources for infrastructure purposes. Its primary principles are delivering resources in a socially responsible way for the rare earth industry. Its triple-digit gain in the past year or so has made it one of the popular penny stocks to watch.
Specifically, American Resources supplies metallurgical coal as well as pulverized coal to the global infrastructure market. One of the aspects that makes it more interesting is its passive role in the EV market. Because electric vehicles use rare earth metals as a large component, the company has gained indirect exposure to the EV marketplace.
This week American gave an update on its Perry County Resources Complex & American Carbon division. The company began shipping specialty stoker carbon to customers. It also deployed a crew to prep its McCoy Elkhorn complex and bring it back online. In particular, this could become a good asset for the company this year. American Resources said that the McCoy Elkhorn complex could produce 350,000 - 500,000 of high-quality metallurgical carbon for the domestic and international steel-making markets once online. With plans of beginning operations during Q2-Q3 this year, timing is also something to pay attention to.
Nuclear Power Penny Stocks To Watch: Denison Mines Corp. (NYSE: DNN)
Shares of DNN stock rose on Monday, March 29th, following the announcement of its 40-F filing with the SEC. While this isn't anything out of the ordinary, it should give investors a better view of where Denison Mines' business is right now. For some context, Denison is a uranium exploration and development company. The majority of its resources are in the northern Saskatchewan region of Canada.
This includes the Athabasca Basin region, where its flagship Wheeler River Uranium Project is located. In addition to this, it holds a 22.5% stake in the McClean Lake joint venture and a 66.9% interest in the Heldeth Tue and Huskie deposits, among others. These projects all help to make up Denison's large portfolio of uranium mining property.
Only a year ago, DNN stock was trading at under $0.30 per share. As of March 29th, shares are trading above $1. This month, Denison Mines announced the closing of an $86.3 million financing deal. The goal of this is for the strategic acquisition of physical uranium reserves. With the demand for alternative and renewable energy at a high, uranium has come to light. Denison's large price movement has occurred simultaneously with the bullish interest in other uranium penny stocks.
Are These Energy Penny Stocks To Buy Right Now?
These are just a handful of energy penny stocks to watch. Whether they're a "buy" or not is something I'll let you decide on. What I will say is that thanks to the Biden administration's focus on renewables, alternatives, green energy, etc., there's been new life breathed into some of these stocks that were relatively suppressed over the last half-decade. If things like new government spending marks a turning point, it might not hurt to have a few names on your watch list.
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