Uranium, Lithium, Oil: A Stock Analysis of PLS Group, American Atomics, and TotalEnergies

PLS Group: Successful Turnaround

PLS Group, formerly known as Pilbara Minerals, is one of Australia's largest lithium producers. The company experienced a steep rise during the boom years of the last decade before lithium prices plummeted. Now, however, the market appears to be closer to equilibrium again. Analysts expect lithium prices to stabilize and believe the worst is over. Demand for electric vehicles and energy storage systems is driving the market.
Even during difficult times, the PLS Group went all out, continuously increasing production. In 2025, however, it suffered a sharp 39% decline in revenue to approximately AUD 769 million. Sales prices had fallen by more than a third. Consequently, the Australian company posted a heavy loss of AUD 196 million.

But the tide has turned. In the first half of 2026, the company returned to profitability. PLS posted a net income of AUD 33 million. Revenue delivered an impressive performance, rising 47% to AUD 624 million. Analysts particularly praise management's strict cost control. Despite the tough years, the balance sheet looks strong. Liquidity stands at around AUD 1.5 billion, making the company clearly one of the sector's strongest financially. On the other hand, shareholders must accept that there will be no dividends for the time being. At PLS, the focus is currently on growth.

Management aims to transform the company from a mining firm into a global, vertically integrated chemical conglomerate. The US company Albemarle is likely serving as the model here. This year, management expects record production of 820,000 to 870,000 metric tonnes of spodumene concentrate. In the long term, the goal is to sustainably produce 1 million metric tonnes per year. As is so often the case, the stock market has already priced in this positive development. PLS's stock has multiplied in value since 2025. In recent weeks, there has been a sort of correction. Anyone looking to buy should first wait for the stock to firmly find a bottom.

American Atomics: When will the stock break out?

China is currently building and planning dozens of nuclear power plants. Other nations are also moving toward or returning to nuclear power. The US has only recently rediscovered this energy source as a result of the war in Ukraine. In the meantime, decisions have already been made to restart old reactors, such as Three Mile Island, to meet the enormous demand for AI data centers.

The Trump administration now has very ambitious plans. By 2050, capacity is to be expanded to up to 400 gigawatts. However, there are very few uranium producers in the country. Russia and Kazakhstan are key suppliers, but the US plans to stop importing material from Russia starting in 2028. This development has triggered a boom among uranium explorers in the US, although there are still only a few promising projects there. American Atomics is one of the few companies that has set to work. Management aims to become a vertically integrated company in the nuclear sector, following a "rock-to-reactor" strategy. In addition to mining, the company also plans to undertake the processing and refining of uranium.

The starting point, of course, is the deposit itself. American Atomics has secured the Big Indian project in Utah. It is located in the heart of the Lisbon Valley Mining District, a historic uranium mining area in the southeastern part of the state. At Big Indian, the company holds 217 contiguous claims. Under the terms of an agreement, American Atomics can increase its stake to up to 80%. The company can leverage historical data from the oil and gas industry, which greatly facilitates exploration. For the processing of the material, the company has already secured CVMR, an experienced and globally active corporation, as a partner. A modern uranium mill is to be built as part of a joint venture.

American Atomics shares have been trading sideways since the beginning of the year. Bold investors are buying shares below CAD 0.30 and betting on a breakout. In case of doubt, operational progress—such as drilling results or positive news from Washington—may be enough to trigger this.

TotalEnergies: Open and Closed Straits

Meanwhile, the conflict in the Persian Gulf is slowly subsiding. Negotiations are underway between Iran and the US. However, there are repeated disruptions, and so the Strait of Hormuz is sometimes closed and sometimes open again, if media reports are to be believed. The truth likely lies somewhere in the middle. Bloomberg reported at the start of the week that shipping traffic currently stands at around 30% of pre-war levels. For oil companies, however, one thing is clear: prices in most places are above pre-conflict levels. TotalEnergies is one of the world's largest oil producers. The war was already reflected in the company's first-quarter figures. The Paris-based company posted a net profit of EUR 4.96 billion, significantly higher than in the same quarter of the previous year. Consequently, the dividend was raised to EUR 0.90 per share for the quarter. Projected over the full year at the current share price, this results in a dividend yield of more than 5%. In addition, a share buyback program worth approximately EUR 1.5 billion is underway.

The question remains: will profits continue to flow in the coming months? Total is likely to report another strong profit in the second quarter, though the figures are not yet available. However, oil prices have since fallen noticeably. At the same time, inventories are running low, particularly in North America. So there are many conflicting signals in the market. What is more, who knows whether hostilities resume or not? The US president has been very "volatile" in his decisions, and not just during the conflict. In this regard, investing in TotalEnergies is only advisable for those who firmly expect oil prices to remain stable or rise.

With the PLS Group, investors are betting on Australia's largest lithium producer. The company is currently benefiting from rising demand and higher prices. American Atomics aims to close the uranium gap created by the US nuclear energy comeback. The share's prolonged sideways movement makes it an attractive buying opportunity. With TotalEnergies, investors can primarily bet on the outcome of negotiations between Iran and the US. Anyone investing here is betting on stable or even rising oil prices.