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ASX-listed uranium miners have seen significant gains following reports of a power deal between U.S.-based Constellation Energy (CEG.O) and Microsoft (MSFT.O), aimed at reviving a unit of the Three Mile Island nuclear power plant. Constellation plans to invest $1.6 billion to restart the facility, which will supply electricity to Microsoft's data centers.
Among the notable beneficiaries of this news is Perth-based Boss Energy (ASX:BOE), whose shares climbed as much as 10.3%, building on an 8% increase from the previous session. This surge has pushed BOE’s stock to its highest level since late August, reflecting growing investor confidence in the company's uranium production capabilities, which are forecasted to reach 850,000 pounds in FY25.
Paladin Energy (ASX:PDN) also experienced a robust rise, with shares increasing by as much as 8.3%, adding to Monday's gains of 4.7%. Similarly, Deep Yellow (ASX:DYL) saw a 7.5% increase after advancing over 5% the previous day.
Analysts point to a near-term supply deficit in uranium coupled with insatiable demand from the AI and tech sectors as key drivers of the rally in uranium stocks. Regan Burrows, a resources analyst at Bell Potter Securities, commented on the strong growth potential for uranium, reinforcing the positive sentiment in the market.
The uptick in uranium miners has positioned Boss Energy, Paladin Energy, and Deep Yellow as the top three gainers in the ASX200 benchmark index, highlighting the sector's increasing prominence amid shifting energy demands and evolving market dynamics.
