ASX uranium shares are exploding today on the back of decade-high uranium prices and industry optimism.
Among the stocks leaping higher today are Boss Energy Ltd (ASX: BOE), Paladin Energy Ltd (ASX: PDN), Deep Yellow Limited (ASX: DYL), and Vimy Resources Ltd (ASX: VMY).
So why are ASX uranium shares doing so well today?
Uranium price outlook positive
The Boss Energy share price is surging 8% today, Paladin is exploding 14%, Deep Yellow is gaining 7%, and Vimy Resources is soaring nearly 12%.
Uranium prices gained 1.69% in overseas markets overnight, trading economics data reveals. The price of the metal extended its surge above $53 per pound, the highest price since November 2011.
One company boss believes the metal could top $US100 a pound. At the time of writing, uranium is $54.05 per pound.
Vimy CEO Steven Michael told the Financial Review that geopolitical tension and climate change could see the price edge ahead.
Michael said:
There is a real positive sentiment towards not just uranium, but uranium supply from non-Eastern European countries.
Western Europe is going to have to change its reliance on Russian gas, and they’d not want to go back to coal so nuclear plays a really strategic role in that.
Meanwhile, US President Joe Biden is considering sanctions on Russian uranium supplier, Rosatom Corp, Republic World reports. The White House is reportedly in discussions with the nuclear power industry on the impact of such a ban.
Russia supplies about 10% of global uranium. In the past month, the uranium price has surged by nearly 25%. Over the past year, it has rocketed 95%.
Paladin has advanced the most out of the ASX uranium shares mentioned here. Yesterday, Bell Potter increased the price target on Paladin shares to 96 cents. Currently, the Paladin share price is 88 cents.
ASX uranium share prices
Boss shares have rocketed 1,800% in the past year, while Paladin has soared 114%. The Deep Yellow share price has seen gains of 59%, and Vimy Resources shares have surged 118% in a year.
By comparison, the S&P/ASX 200 Index (ASX: XJO) has returned about 6.5% in the past year.
The post Why are ASX uranium shares having such a stellar day? appeared first on The Motley Fool Australia.
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More reading
- Why Block, Myer, Paladin Energy, and Qantas shares are storming higher
- Here are the top 10 ASX shares today
- Here are the 3 most heavily traded ASX 200 shares this Wednesday
- What a Boss! Why the Boss Energy (ASX:BOE) share price is soaring 13% today
- Paladin Energy (ASX:PDN) share price jumps 9% on broker upgrade
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.
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