From PDN to LOT: How are ASX uranium stocks faring amidst rising demand for the fuel

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From PDN to LOT: How are ASX uranium stocks faring amidst rising demand for the fuel

 From PDN to LOT: How are ASX uranium stocks faring amidst rising demand for the fuel
Image source: © Johncarnemolla | Megapixl.com

Highlights: 

  • Benchmark S&P/ASX 200 opened marginally up on Friday, gaining just 1.30 points to 7,114 (as of 10:09 AM AEST).
  • Majority of the significant sectors from the ASX 200 index closed in red on Thursday, Energy sector being one of the better performers.
  • On Friday, energy sector opened up strong, gaining 3.24% to 10,601.8 points (as of 10:10 AM AEST).
  • This article primarily talks about five leading ASX-listed uranium stocks and their respective performances on the ASX. 

Uranium mining industry is one of the most flourished sectors in Australia as the country possesses the largest uranium reserves in the world. Australia is also considered the fourth largest exporter of uranium worldwide.

Why are uranium prices soaring high these days? 

Uranium price has been witnessing surge in its prices of late. This could be one of the impacts of the Russia-Ukraine war. Due to the war, Russia determined to cut off supplies in Europe. As a result, Australia being the largest uranium reserve owner, experienced a high demand for uranium supply in Europe. Driven by higher demand, prices of this commodity has been seeing an upwards momentum.

The price of uranium soared from AU$27 per pound in late 2017 to AU$86 per pound in March 2022. 

Another reason for the rising demand for uranium is that most countries these days are building up nuclear weapons for security. For instance, Japan is planning to reopen its nuclear reactors. At the same time, France is planning to replace its old nuclear reactors with new ones. While Belgium is preventing itself from shutting down the nuclear reactors, Poland is planning to develop new nuclear reactors. 

Driven by such heavy demand for uranium, Australian and Canadian mining companies are taking new leases in sparsely populated areas like the North-Western part of Queensland to add uranium to their inventories.  

Meanwhile, the S&P/ASX 200 Energy sector (INDEXASX:XEJ) opened 3.24% higher at 10,601.8 points on the ASX today (as of 10:10 AM AEST, 19 August 2022). 

This article primarily features five significant ASX-listed uranium stocks such as Paladin Energy, Energy Resources of Australia, Boss Energy, Berkeley Energia, and Lotus Energy; and their respective performances on the ASX.

 

Image source: © Vencavolrab | Megapixl.com

Paladin Energy Ltd (ASX:PDN) 

Shares of significant uranium explorer Paladin Energy Limited (ASX:PDN) closed Thursday’s trading session in the red zone. Paladin's share price stood at AU$0.7 per share after losing 4.109% on the ASX today. 

Over the last one year, Paladin's share price has gained 59% on the ASX. On the contrary, Paladin's year-to-date-based share price declined by 26.32% on the ASX today (as of 10:07 AM AEST).

Energy Resources of Australia Limited (ASX:ERA) 

Renowned uranium miner, Energy Resources of Australia Limited (ASX:ERA) shares, ended yesterday’s trading session on a negative note on the ASX. Energy Resources' share price stood at AU$0.24 per share after losing 2.04% on the ASX on Thursday. 

Within last one year, Energy Resources' share price has declined by 11.11% on the ASX. On the other hand, the uranium miner's YTD-based share price declined by more than 31% on the ASX today. 

Boss Energy Ltd (ASX:BOE) 

Shares of emerging uranium miner Boss Energy Ltd (ASX:BOE) closed Thursday's trading session marginally lower on the ASX. Boss' share price stood at AU$2.44 per share after losing slightly by 0.408% on the ASX. 

On Friday, the stock opened marginally higher at AU$2.450 apiece at 10:10 AM AEST.

Within a time span of a year, Boss Energy's share price has increased significantly by over 1,671% on the ASX. On YTD-basis, the share price has gained 1.22% on the ASX today (as of 10:10 AM AEST). 

Image source: © Johncarnemolla | Megapixl.com

Berkeley Energia Limited (ASX:BKY)

Uranium explorer and developing company Berkeley Energia Limited (ASX:BKY) ended Thursday’s trading session on a negative note after losing 1.47% on the ASX. Berkeley's share price stood at AU$0.335 per share by the end of Thursday's trading session. 

Berkeley's share price has appreciated almost by 12% in the last one year. Moreover, the uranium explorer's YTD-based share price also appreciated by 39.58% on the ASX (as of 18 August).

Lotus Resources Limited (ASX:LOT) 

Australian uranium explorer Lotus Resources Limited (ASX:LOT) ended Thursday’s trading session in the red zone. However, on Friday, Lotus' share price started off in green, up 2.325% at AU$0.220 per share as of 10:12 AM AEST. 

Over the last one year, Lotus' share price has appreciated significantly by over 46% on the ASX. On the contrary, Lotus' YTD-based share price declined by 31% on the ASX (as of 10:10 AM AEST, 19 August 2022). 

Uranium mining industry is one of the most flourished sectors in Australia as the country possesses the largest uranium reserves in the world. Australia is also considered the fourth largest exporter of uranium worldwide.

Why are uranium prices soaring high these days? 

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