Why the Peninsula Energy (ASX:PEN) share price is rocketing 20% today

The uranium sector is on its way to the moon on Wednesday.
The post Why the Peninsula Energy (ASX:PEN) share price is rocketing 20% today appeared first on The Motley Fool Australia. –

The Peninsula Energy Ltd (ASX: PEN) share price is having a bumper day, surging 19.57% to 27.5 cents.

Peninsula Energy owns the Lance Uranium Projects in Wyoming, in the United States. The company is currently transitioning its production method from alkaline to an industry-leading low pH in-situ recovery process.

According to Peninsula Energy, companies that utilise this process populate the lowest quartile of cash costs for global uranium producers.

Peninsula Energy share price jumps on uranium boom

The broader ASX-listed uranium sector is surging on Wednesday following a strong overnight move from international uranium peers.

The largest ASX-listed uranium player, Paladin Energy Ltd (ASX: PDN), is currently up 23.47% to 90.8 cents.

The broad-based buying has trickled all the way down to the speculative end of town. Names such as 92 Energy Ltd (ASX: 92E) and Alligator Energy Ltd (ASX: AGE) are jumping 11% and 18%, respectively.

The strength across the uranium sector was reflected through the strong overnight performance of the Global X Uranium ETF. The Global X ETF jumped 11.92% on the back of its highest ever volume since inception.

In addition, uranium spot prices have rallied by around US$2.75/lb or 7.3% to US$40.5/lb overnight, according to Numerco.

How does this impact Peninsula?

Peninsula Energy made the decision to raise $15 million in May to fund its purchase of 300,000 pounds of uranium at US$31.35 per pound.

Management believed this acquisition of physical uranium was “strategically aligned with the planned preparations for the Company’s flagship Lance Project transition to low pH ISR operations.”

As well, it was a potential “source of funding for the restart of operations at Lance following a final investment decision.”

With uranium prices holding above US$40/lb, this means that Peninsula is sitting on a tidy $2.75 million profit for its physical uranium investment.

Peninsula Energy share price in 2021

The Peninsula Energy share price has boomed in 2021. Peninsula Energy shares are up more than 120% year to date thanks to the resurgence of uranium spot prices.

Peninsula marked a 2.5-year high of 35 cents on 15 September.

The post Why the Peninsula Energy (ASX:PEN) share price is rocketing 20% today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Peninsula Energy right now?

Before you consider Peninsula Energy, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Peninsula Energy wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Why ASX uranium shares are bouncing back on Friday

How did ASX uranium shares perform in September?

Why the Peninsula Energy (ASX:PEN) share price tumbled 25% from multi-year highs
A sea of red for ASX uranium shares. Is the run over?

Are ASX uranium shares fully valued?

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!