Why is the Paladin Energy share price jumping 13% today?

jump in asx share price represented by man jumping in the air in celebration

jump in asx share price represented by man jumping in the air in celebration

The Paladin Energy Ltd (ASX: PDN) share price has been a very strong performer on Wednesday.

In morning trade, the uranium producer’s shares are up 13% to 79.5 cents.

Why is the Paladin Energy share price shooting higher?

Investors have been bidding the Paladin Energy share price higher today despite there being no news out of the company.

However, there has been some very positive industry news which is giving uranium shares a big lift.

For example, the Boss Energy Ltd (ASX: BOE) share price is currently up 11%, the Deep Yellow Limited (ASX: DYL) share price is currently up 8%, and the Peninsula Energy Ltd (ASX: PEN) share price is up 20%.

What’s happening?

The catalyst for the rise in uranium shares on Wednesday appears to be news out of the United States.

According to Bloomberg, the Biden administration is pushing lawmakers to support a US$4.3 billion plan to wean the United States off Russian uranium imports for its nuclear reactors.

And while the Biden administration is seeking to buy enriched uranium directly from American producers as part of the plan, given Australia’s close ties with the United States, investors appear optimistic that local producers could also become part of the deal.

Particularly given that the United States only has one remaining commercial enrichment facility. This is a New Mexico plant owned by British-German-Dutch consortium, Urenco.

Not that this would matter to Peninsula Energy, as it already has the Lance Project in Wyoming, USA. It is also worth noting that Paladin Energy has the Michelin project over the border in Canada.

Overnight, the Global X Uranium ETF jumped as much as 7.4% to its highest intraday price in a month on the news.

The post Why is the Paladin Energy share price jumping 13% today? appeared first on The Motley Fool Australia.

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

Before you consider Paladin 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 Paladin Energy wasn’t one of them.

The online investing service he’s run for over 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 January 13th 2022

More reading

Motley Fool contributor James Mickleboro 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/bx2OKrN

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s