Insights

ASX uranium shares are booming this week. Here’s why.

ASX uranium shares are in the hot seat this week amid renewed demand for the commodity.
The post ASX uranium shares are booming this week. Here’s why. appeared first on The Motley Fool Australia. –

ASX uranium shares are surging across the board this week, as uranium spot prices lift to 6-year highs of US$34.25/lb.

The largest of the ASX uranium shares, Paladin Energy Ltd (ASX: PDN) has rallied 56% over the past week to an 8-year high of 78 cents.

Explorers including Deep Yellow Limited (ASX: DYL), Boss Energy Ltd (ASX: BOE), Energy Resources of Australia Limited (ASX: ERA) and Peninsula Energy Ltd (ASX: PEN) have also experienced a flurry of buying activity, surging between 20% and 40% this week.

The newest of all ASX uranium shares, 92 Energy Ltd (ASX: 92E) is another big winner, surging 104% this week to 51 cents. The uranium explorer was successfully listed on the ASX on 15 April at a listing price of 20 cents.

Uranium prices lift to 6-year highs

Uranium prices have been in a prolonged bear market after spot prices peaked at about US$135/lb in June 2007.

Between early 2016 and March 2020, it lingered below US$30/lb, rendering many producers unprofitable and discouraging new exploration projects. This explains why many ASX uranium shares are still down more than 90% from 2007 highs.

It wasn’t until after the initial March COVID-19 sell-off in 2020 that uranium spot prices managed to climb above US$30/lb. This week, prices touched US$35/lb for the first time in six years.

To add some perspective, Paladin Energy recently announced plans to restart its “globally significant” Langer Heinrich mine. The company estimates that it will cost approximately US$81 million to restart operations, with life of mine production cash costs of US$27/lb. In addition to freight and logistics of US$0.95/lb and sustaining capex of US$2.90/lb.

Encouragingly, Paladin Energy believes there is an emerging “structural supply deficit with growing demand”. The company’s March equity raising presentation stated the “current primary uranium supply [is] unable to meet current demand”.

The post ASX uranium shares are booming this week. Here’s why. appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

Up 50% this week, the Paladin Energy (ASX:PDN) share price is booming. Here’s why.
Which ASX shares are set to finish the week as the top movers on the ASX 300?

The 92 Energy (ASX: 92E) share price is rocketing 44% today. Here’s why
Up 29% this week, the Boss Energy (ASX:BOE) share price is soaring again
Which ASX 300 shares are the biggest winners and losers on Thursday?

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!