ASX uranium shares are surging across the board for a second day following a tsunami of capital inflow into the sector.

Let's take a closer look at what's going on today.

ASX uranium shares extend winning streak

Yesterday, ASX uranium shares rallied double-digits across the board from the largest, most established players like Paladin Energy Ltd (ASX: PDN) all the way through to speculative explorers like 92 Energy Ltd (ASX: 92E).

The bullish performance continues on Thursday, with the Paladin Energy share price opening 5.2% to 91.5 cents this morning.

More advanced explorers such as Boss Energy Ltd (ASX: BOE) and Deep Yellow Limited (ASX: DYL) also opened a respective 5.4% and 2.3% higher at the morning bell.

On the more speculative end of town, ASX uranium shares including Bannerman Energy Ltd (ASX: BMN), Lotus Resources Ltd (ASX: LOT), Peninsula Energy Ltd (ASX: PEN), and Alligator Energy Ltd (ASX: AGE) also jumped on open.

It looks like the ASX uranium shares have since taken a breather after rallying at the morning bell. Many have partially retreated or faded into slightly negative territory at the time of writing.

What's driving the re-rate for ASX uranium shares?

Uranium ETF jumps again on record volume

On Wednesday, the Global X Uranium exchange-traded fund (ETF) surged 11.65% on the back of its highest volume since inception. Just over 6.1 million shares traded hands, compared to its 10-day average of around 2.3 million shares.

Last night, the uranium ETF extended its gains, adding another 6.84%, closing at a fresh all-time high. This move was driven by another record volume day, with 6.3 million shares traded.

Evidently, the market is waking up to the role that uranium could play in achieving net zero emissions and supporting the energy crisis taking place across China and Europe.

The uranium ETF has a 12.1% allocation towards ASX uranium shares, with exposure to players including Paladin Energy, Boss Energy, Bannerman Energy and more.

Uranium spot prices tick higher

Another factor in the bullish performance of ASX uranium shares is the resurgence of spot prices.

Uranium spot prices surged US$6.00/lb or 14.8% to US$46.5/lb, according to Numerco.

Uranium prices have rebounded strongly after hitting US$50/lb on 17 September.

Sprott's buying spree continues

Sprott asset management and its physical uranium trust has been pointed out as a major catalyst behind the re-rate for the uranium sector.

Its uranium trust is one of few funds that invests in physical uranium, taking it off the spot market and tightening supply.

Sprott tweeted this morning that it added another 1.15 million pounds of physical uranium. That brings its total holdings to well over 30 million pounds.

The post ASX uranium shares are surging this week. Here's why appeared first on The Motley Fool Australia.

ASX uranium shares are again finding a footing on Friday after rallying to multi-year highs in mid-September.

The largest ASX-listed uranium player, Paladin Energy Ltd (ASX: PDN), opened 5.63% higher to 75 cents before its gains faded to a rise of 1.69%, or 72 cents.

Emerging producer Boss Energy Ltd (ASX: BOE) is catching bids today. It was up 4.26% to 24.5 cents in early trade before slipping back slightly to 24 cents.

Explorers including Peninsula Energy Ltd (ASX: PEN), Lotus Resources Ltd (ASX: LOT) and Vimy Resources Ltd (ASX: VMY) are also trading higher, up 4.76%, 2%, and 7.5% respectively.

Advanced uranium explorer Deep Yellow Limited (ASX: DYL) fell slightly before bouncing back to 93 cents, up 2.2%. However, recently listed 92 Energy Ltd (ASX: 92E) is down 2.13% to 69 cents.

Upbeat news for ASX uranium shares overnight

The Global X Uranium exchange-traded fund (ETF) rallied strongly overnight, up 3.9%.

The uranium ETF provides investors with access to a broad range of global companies involved in uranium mining and the production of nuclear components.

Another likely catalyst for the rise in ASX uranium shares on Friday was an announcement out of the world's largest physical uranium fund, the Sprott Physical Uranium Trust (SPUT).

The fund actively invests in physical uranium. It takes supply off the spot market and stores it in secured locations with highly reputable uranium operators.

On 17 September, the fund had accumulated 27.7 million pounds of uranium. By comparison, uranium investment firm Yellow Cake PLC reported total spot volume for 2020 of 92.2 million pounds.

This morning, Sprott's Twitter revealed the fund had exceeded the 30 million pounds mark.

Sprott's buying frenzy has been viewed as the catalyst that pushed uranium prices from US$30/lb in mid-August to 9-year highs of approximately US$50/lb by 17 September.

Uranium prices have since cooled off, trading around US$40/lb.

Morgan Stanley isn't convinced the supply-demand fundamentals have changed in a manner to justify the recent price rise.

While experts are divided on current uranium prices, there's no denying that more countries are showing interest in nuclear reactors.

The post Why ASX uranium shares are bouncing back on Friday appeared first on The Motley Fool Australia.

It looked like ASX uranium shares were making a run for the moon in September, many of which surged to multi-year highs.

Uranium prices skyrocketed at the beginning of the month, surging from US$30/lb to above US$50/lb for the first time since June 2012.

The resurgence in uranium was largely driven by Canadian investment fund, Sprott Asset Management and its Physical Uranium Trust.

Sprott had an aggressive strategy to buy physical uranium off the spot market, effectively squeezing the illiquid market.

But as Sprott's buying activity slowed and profit-taking began to take place, uranium prices eased in the latter half of the month. By month-end, uranium prices were sitting at around US$44/lb.

The Global X Uranium Exchange Traded Fund (ETF) provides a solid overview of how the broader sector performs amidst the renewed interest in the energy metal.

Last month, the uranium ETF surged 36% from US$21 to a 7-year high of US$28.7 by 15 September.

Its gains would fade in the second half, sliding 17% from highs to US$23.79 by month-end.

This was a consistent narrative for most ASX uranium shares, surging to multi-year highs before a sharp 20-30% pullback from highs.

What a month it was for ASX uranium shares

The largest ASX-listed uranium player, Paladin Energy Ltd (ASX: PDN), finished the month a modest 35% higher at 69 cents.

Its highest return for the month was just shy of 120% after surging to a 9-year high of $1.12 on 16 September.

The narrative was the same across most other ASX uranium shares, with explorers Deep Yellow Limited (ASX: DYL), Peninsula Energy Ltd (ASX: PEN) and Boss Energy Ltd (ASX: BOE) all fading in the latter half of the month.

Newly listed 92 Energy Ltd (ASX: 92E) was perhaps the only exception after finding success in its inaugural drilling program.

On 20 September, the company identified new zones of uranium mineralisation at its Gemini Project. It expects a follow up drilling program to take place to determine the extent of mineralisation.

The 92 Energy share price surged as much as 360% in September, before closing the month 206% higher at 76.5 cents.

The post How did ASX uranium shares perform in September? appeared first on The Motley Fool Australia.

The 92 Energy Ltd (ASX: 92E) share price has come out of a trading halt today to backtrack during mid-morning. This comes after the uranium exploration company provided an update on its recent equity raise.

At the time of writing, 92 Energy shares are swapping hands for 75 cents, down 1.96%

92 Energy completes placement

One catalyst for today's fall in the 92 Energy share price could be investor concerns over an impending share dilution.

According to its update, 92 Energy announced it has received firm commitments for its institutional placement to raise $7.15 million before costs. The company highlighted that it had strong support from several high-quality domestic and offshore institutional investors.

The offer will see approximately 9.93 million new ordinary shares issued at a price of 72 cents apiece. This represents a 5.9% discount to the last closing price of 76.5 cents on 23 September (before the trading halt).

92 Energy will use its existing placement capacity to create the new shares. Under listing rule 7.1, this allows up to an additional 15% of its total shares to be issued without shareholder approval.

The company will use the proceeds from the capital raise to progress its exploration activity at the Gemini Project. In particular, the funds will be allocated to the following:

• Major drill program at the Gemini Project to follow up the recent uranium discovery at the Gemini Mineralisation Zone (GMZ) in the Athabasca Basin
• Undertake exploration activities at the 92 Energy's other projects in the Athabasca Basin region
• General working capital.

Settlement of the new shares is expected to occur next Tuesday 5 October.

92 Energy managing director Siobhan Lancaster commented:

This Placement represents a significant milestone for the Company and provides important external validation for the recent discovery of uranium mineralisation at the Company's 100%-owned Gemini Project in the Athabasca Basin.

We look forward to the upcoming drilling program at Gemini which will assist us to determine the extent of the uranium mineralisation at the Gemini Mineralised Zone.

About the 92 Energy share price

Despite today's falls, 92 Energy shares have gained around 160% in the past 12 months. However, the company's share price is around 25% off its all-time high of $1.15 reached in mid-September.

Based on valuation grounds, 92 Energy presides a market capitalisation of around $29.5 million, with almost 40 million shares outstanding.

The post 92 Energy (ASX:92E) share price dips on capital raising update appeared first on The Motley Fool Australia.

ASX uranium shares have enjoyed some monstrous gains in the past month thanks to skyrocketing uranium prices.

Between 31 August and 16 September, the largest ASX-listed uranium player, Paladin Energy Ltd (ASX: PDN) surged almost 120% from 51 cents to 9-year highs of $1.120.

Prospective explorers such as Deep Yellow Limited (ASX: DYL), Peninsula Energy Ltd (ASX: PEN), 92 Energy Ltd (ASX: 92E) and Boss Energy Ltd (ASX: BOE) delivered similar triple digit gains over the same period.

But more recently, ASX uranium shares have been running out of steam, many of which have declined 20-30% from recent multi-year highs.

Why are ASX uranium shares tumbling?

The sharp re-rate across the uranium sector was fueled by Sprott's Physical Uranium Trust, a Canadian investment fund focused on aggressively buying physical uranium off the spot market.

Uranium is an illiquid commodity that does not trade on an open market like copper or oil. Buyers and sellers typically negotiate contracts privately.

By 18 September, Sprott had already amassed 28 million lbs of uranium, according to the fund's Twitter.

To add some perspective, uranium investment firm Yellow Cake PLC reported total spot volume for 2020 of 92.2 million pounds.

Broadly coinciding with Sprott's shopping spree, uranium spot prices rallied above US$50/lb on 20 September, the highest since June 2012.

Previously, many ASX uranium shares halted production and exploration activities due to weak uranium prices. The recent move to multi-year highs has encouraged many players such as Paladin Energy and Boss Energy to pick up where they left off.

Since then, prices have eased to around US$44/lb according to Trading Economics.

In addition, Sprott's buying activity appears to be slowing down, with the fund's last uranium purchase on 17 September.

With both spot prices and Sprott's uranium fund taking a breather, ASX uranium shares have followed suit.

Is the run over for uranium?

Director of Sprott, Rick Rule, told Kitco News that current uranium prices are still cheap.

He said that the fund was going to make an application to list the Uranium Trust on the New York Stock Exchange, where "the overwhelming majority of the volume that [investors] enjoy in their precious metals trusts occurs."

From a more fundamental perspective, many investors have backed ASX uranium shares as it plays into the theme of green energy.

In a separate interview with Kitco, CEO of Sprott Inc, Peter Grosskopf said, "We think uranium is entering a new bull market as the world looks for a mix of clean energy in the new green energy revolution."

"If you want a low carbon grid, you can achieve it by spending an enormous amount of money and having a highly inefficient grid, which is inherently unstable, or you include nuclear as a core part of the power base. We think uranium has been underplayed for the last 15 years." 

The post A sea of red for ASX uranium shares. Is the run over? appeared first on The Motley Fool Australia.

The 92 Energy Ltd (ASX: 92E) share price won't be going anywhere on Friday after the company requested a trading halt.

What's the trading halt for?

92 Energy shares will remain halted, pending the release of an announcement regarding a capital raising.

It will remain in a trading halt until Tuesday, 28 September or upon the release of the announcement.

The 92 Energy share price successfully made its ASX debut on 15 April after a strongly supported initial public offering at 20 cents a share.

The company has $5.8 million in cash and cash equivalents based on its June quarterly activities report.

All aboard the uranium hype train

92 Energy shares have been running hot following a sudden spike in uranium spot prices.

Uranium prices briefly jumped to US$50/lb in late September, marking a 9-year high for the energy metal.

Uranium prices have been skyrocketing off the back of purchases from an investment fund, Sprott's Physical Uranium Trust.

This has caused a sharp re-rate across ASX-listed uranium players, from established large cap players like Paladin Energy Ltd (ASX: PDN) all the way to recent IPOs like 92 Energy.

As such, the 92 Energy share price is up 173% since its first day of listing, where it closed at 28.5 cents. And up almost 400% for those that managed to participate in the IPO.

92 Energy share price jumps on uranium discovery

Shares in 92 Energy briefly touched $1.15 on Monday after the company discovered a new zone of uranium mineralisation at its 100% owned Gemini Project.

The company will now review the drill results for "insights into the geology, mineralogy and structure … to gain a comprehensive understanding of this zone as soon as possible".

A follow-up drilling program is currently planned for the Canadian winter drilling season which typically runs from January to March.

The post Why the 92 Energy (ASX:92E) share price is frozen today appeared first on The Motley Fool Australia.

The 92 Energy Ltd (ASX: 92E) share price has rocketed more than 43% in today session.

Shares in the uranium player have surged ahead after releasing a promising announcement earlier today.

Let's take a look at why investors are pushing the 92 Energy share price higher today.

92 Energy share price soars on uranium discovery

Shares in 92 Energy have soared after announcing the discovery of a new zone of uranium.

The company released an announcement earlier today, noting new zones of uranium mineralisation at its Gemini Project.

92 Energy identified the zones from chemical assays of samples from a drill hole (GEM-004).

Mineralisation of 0.12% uranium oxide was intersected at 5.5 metres, including 1 metre at 0.28% uranium oxide.

The highest-grade assay within this sub-interval returned 0.36% uranium oxide at 0.5 metres.

92 Energy managing director Siobhan Lancaster noted;

To identify 5.5m of 0.12% U3O8 on the fourth drill hole of our inaugural drilling program is an extraordinary result for 92 Energy. The success of this program is testament to our technically-driven strategy and the world-class exploration team that designed and delivered this program.

Importantly, the company's management also noted that the drill assays showed similarities to other early holes at major Athabasca Basin uranium discoveries.

92 Energy noted that follow up drilling to determine the extent of mineralisation is due to begin in the Canadian winter.

More on 92 Energy

92 Energy is an Australian uranium exploration company with its main interest in the Athabasca Basin, Saskatchewan, Canada.

The uranium player has a 100% interest in its 28 mineral claims in the Athabasca Basin, which lie in its five projects; Gemini, Tower, Clover, Powerline Creek and Cypress River.

92 Energy's Gemini project lies southeast of the McArthur River uranium mine, which is one of the largest uranium deposits in the world.

92 Energy listed on the ASX on 15 April after successfully raising $7 million at 20 cents per share.

Since its IPO, shares in the uranium player have soared more than 400%.

In addition to today's news, the 92 Energy share price has also been fuelled by surging uranium spot prices.

At the time of writing, shares in the uranium player are trading 23% higher for the day.

The 92 Energy share price was up more than 43% earlier after hitting an intra-day and record high of $1.15.

The post 92 Energy (ASX:92E) share price rockets 43% on uranium discovery appeared first on The Motley Fool Australia.

ASX uranium shares have pulled back sharply on Monday following a weak open for the S&P/ASX 200 Index (ASX: XJO).

Steep declines for the uranium sector

ASX uranium shares opened to a sea of red on Monday.

The largest ASX-listed uranium player, Paladin Energy Ltd (ASX: PDN), is currently down 14.56% to 88 cents.

Energy Resources of Australia Limited (ASX: ERA) is another large uranium player, down 6.19% to 45.5 cents.

Advanced explorers such as Boss Energy Ltd (ASX: BOE) and Deep Yellow Limited (ASX: DYL) are down double digits, sinking 15.94% and 15.69% respectively.

At the smaller end of town, explorers such as Peninsula Energy Ltd (ASX: PEN), Bannerman Energy Ltd (ASX: BMN) and Vimy Resources Ltd (ASX: VMY) are also logging consistent declines, all down around 15% or more.

92 Energy Ltd (ASX: 92E) is the only ASX uranium share to tip higher, surging 28.3% to $1.025 after announcing a uranium discovery at its Gemini Project.

What's driving ASX uranium shares lower?

ASX 200 selloff

The ASX 200 is currently down 1.55% to a 2-month low of 7,289.

From iron ore to lithium, nothing is safe with a 4.3% plunge in the S&P/ASX Materials (INDEXASX: XMJ) Index.

The weakness in both the broader market and resources sector is likely a contributing factor in the panic taking place across ASX uranium shares on Monday.

Uranium sector pulls back

The Global X Uranium ETF (NYSE: URA), which invests in a broad range of companies engaged in uranium mining and nuclear components tumbled 7.83% last Friday.

The fund's top holdings include the world's largest listed uranium company, Cameco Corporation, and the world's largest producer, Kazatomprom.

Both Cameco and Kazatomprom fell sharply last Friday, down 6.53% and 4.42% respectively.

The fund also holds a number of ASX uranium shares including Paladin Energy, Boss Energy, Bannerman Energy, Deep Yellow and Peninsula Energy.

The post Why ASX uranium shares are diving double-digits on Monday appeared first on The Motley Fool Australia.

ASX uranium shares are going nuclear after uranium spot prices jumped to 9-year highs of US$48/lb according to S&P Global Platts. A month ago, uranium was fetching for just ~US$30/lb.

ASX uranium shares going parabolic

The largest ASX-listed uranium player, Paladin Energy Ltd (ASX: PDN) has surged 115% to fresh 9-year highs in the past month.

The gains have tricked all the way down to small cap explorers such as 92 Energy Ltd (ASX: 92E) and Peninsula Energy Ltd (ASX: PEN), which have both more than doubled since August.

Even after a 60% jump in uranium prices, some analysts think that the uranium market has more legs to run.

What's driving uranium?

The recent jump in ASX uranium shares and spot prices has largely been driven by Sprott Inc's Physical Uranium Trust, listed on Canada's Toronto stock exchange.

The fund has been actively buying physical uranium off the spot market, driving demand and tightening supply.

Kitco reported that the fund has bought 24 million pounds of uranium since mid-August, representing "about 14% of global reactor consumption".

Kitco also highlighted that the "new demand in the marketplace has attracted new momentum players to the market, including retail investors from Reddit's WallStreetBets, a popular financial discussion forum."

Uranium market is "just leaving the station"

According to Kitco, some analysts have likened the uranium market as "a freight train that is just leaving the station as growing demand in a relatively tight market sparks a surge in prices."

In an interview with Kitco News, Waaren Irwin, founder of Rosseau Asset Management said "the supply and demand outlook for uranium looked fantastic before Sprott came into the market."

"The trust has come in and moved the inevitable rally forward a year or two."

Irwin said that uranium plays into the global shift towards renewables and green energy. And that uranium demand will continue to grow on the backdrop of tight supply.

The post ASX uranium shares boom to multi-year highs, bull market is just getting started: analyst appeared first on The Motley Fool Australia.

The 92 Energy Ltd (ASX: 92E) share price boomed in September thanks to the recent hype around uranium spot prices.

92 Energy listed on the ASX on 15 April after successfully raising $7 million at 20 cents per share.

The company said it is the first pure-play uranium company to list on the ASX in more than a decade after uranium prices plunged from 2007 peaks of US$136/lb to around US$30/lb in 2020.

What's driving the 92 Energy share price?

The 92 Energy share price joins the long list of booming ASX uranium shares, most of which are rallying to multi-year highs.

This is largely thanks to skyrocketing uranium spot prices, which have jumped to 9-year highs of US$48/lb on Wednesday, according to S&P Global Platts.

It was just a month ago that uranium prices were fetching just ~US$30/lb.

The sudden jump in uranium prices has pumped life back into ASX uranium shares across the board.

The largest ASX-listed uranium player, Paladin Energy Ltd (ASX: PDN) has rallied 126% in the last month to a fresh 9-year high.

Other emerging producers and explorers including Deep Yellow Limited (ASX: DYL), Peninsula Energy Ltd (ASX: PEN) and Boss Energy Ltd (ASX: BOE) have all rallied triple digits in the past month.

What's so special about this uranium company?

The 92 Energy share price has returned faithful IPO investors more than 400% in just 5-months.

The company is exploring for high-grade, unconformity-type uranium in the Athabasca Basin, Canada.

This region is known for having some of the highest grade and lowest cost uranium deposits in the world, according to 92 Energy.

92 Energy owns a number of early stage uranium projects all of which are located in the Athabasca Basin. Here's an overview of the company's projects:

• Gemini Project, covering 264.5 km2 on the eastern margin of the Athabasca Basin
• Tower Project, an underexplored and untested prospect also running along the eastern margin
• Clover Project, located within close proximity of major uranium mines including McArthur and Cigar Lake

92 Energy investors can expect a steady stream of updates from the company as it executes its exploration strategy.

According to the company prospectus, it expects to spend approximately 2.2 million over the next year to drive its Gemini, Clover and Tower projects.

The post 92 Energy (ASX:92E) share price jumps 11%, up 400% since IPO. Here's why. appeared first on The Motley Fool Australia.

Uranium stocks are going nuclear as the industry booms from surging spot prices.

According to S&P Global, uranium spot prices rose sharply to a 9-year high of US$48/lb on Wednesday.

But for Australians looking for investment exposure in the energy metal, good luck trying to find an ASX exchange-traded fund (ETF) that focuses on uranium.

Why isn't there an ASX uranium ETF?

Uranium is a far less popular commodity than the likes of resources such as iron ore, copper or gold.

As a matter of fact, the energy metal doesn't even trade on an open market. Buyers and sellers typically negotiate contracts privately.

For investors looking to gain uranium exposure on the ASX, the most realistic option is to invest in individual energy companies.

The largest ASX-listed uranium player is Paladin Energy Ltd (ASX: PDN). The $2.7 billion company operates the "globally significant" Langer Heinrich Mine in Namibia. In March, Paladin Energy successfully raised $192.5 million to clear debt and pave the way to restart its uranium operations.

Energy Resources of Australia Limited (ASX: ERA) is another major player in the ASX-listed uranium space, boasting a market capitalisation of around $1.7 billion.

Paladin Energy and Energy Resources of Australia are arguably the most established uranium companies on the ASX. However, there's a number of emerging players and explorers to also choose from.

Boss Energy Ltd (ASX: BOE) is a $700 million uranium explorer operating the Honeymoon uranium project in South Australia. The company is looking to ramp up exploration activities to drive a final investment decision for Honeymoon in the next 12 months.

Other prospective explorers include Deep Yellow Limited (ASX: DYL), Peninsula Energy Ltd (ASX: PEN) and 92 Energy Ltd (ASX: 92E).

While there isn't exactly a diversified ASX uranium ETF, there are certainly a number of companies operating at different stages of the exploration and production lifecycle to investigate.

What about international markets?

The Global X Uranium ETF is listed on the New York Stock Exchange and provides investors access to a broad range of companies involved in both uranium mining and the production of nuclear components.

Another major uranium ETF is Sprott's Physical Uranium Trust, listed on Canada's Toronto Stock Exchange. The trust is the world's largest actively managed uranium fund that provides investment exposure to physical uranium.

The post Is there a uranium ETF listed on the ASX? appeared first on The Motley Fool Australia.

ASX uranium shares are surging on Monday as spot prices boom to above US$40/lb for the first time in 8-years.

ASX uranium shares deliver double-digit gains across the board

The largest ASX-listed uranium player, Paladin Energy Ltd (ASX: PDN) is up 15% to 98 cents. Paladin owns the "globally significant" Langer Heinrich Mine in Namibia and is currently working towards restarting its operations.

Deep Yellow Limited (ASX: DYL) is another Namibian based player focused on progressing its prospective Tumas project. The Deep Yellow share price is currently 25.65% higher to an 8-year high of $1.20.

Peninsula Energy Ltd (ASX: PEN) made a strategic move to raise $15 million in May to purchase 300,000 pounds of uranium at US$31.35/lb. In addition to holding physical uranium, the company is looking to fast-track its US-based Lance Uranium project into production. At the time of writing, the Peninsula share price is up 25% to 27.5 cents.

Other ASX uranium shares include newly listed explorer 92 Energy Ltd (ASX: 92E) and large cap producer Energy Resources of Australia Limited (ASX: ERA) which are up 31% and 30% respectively.

Why is the uranium sector suddenly booming?

In the world of S&P Global, "A Canadian investment fund almost singlehandedly launched uranium spot prices into orbit with a buying spree that has put the nuclear power industry on alert."

The fund that S&P Global is referring to is Sprott Inc and its Physical Uranium Trust (SPUT).

SPUT is the world's largest actively managed uranium fund focused on providing investors with exposure to physical uranium.

According to S&P Global, the fund's thesis is quite simple, "If they were given funding, they would purchase material out of a spot market that was flooded with excess supply following the 2011 nuclear disaster at Fukushima Daiichi in Japan."

SPUT's aggressive move to buy uranium off the spot market has driven a sudden re-rate for both uranium spot prices and ASX uranium shares.

But Sprott says that this is just the beginning.

In an interview with Kitco News, Sprott director Rick Rule said:

Sprott is going to make an application to list that trust on the New York stock exchange, where the overwhelming majority of the volume that [investors] enjoy in their precious metals trusts occurs. If that happens in terms of inflows into the trust, if the material is available to buy in the spot market quote, then you ain't see nothing yet.

The post ASX uranium shares are booming double digits across the board on Monday. Here's why. appeared first on The Motley Fool Australia.

ASX shares in the uranium sector surged to multi-year highs last week thanks to a jump in spot prices.

The largest ASX-listed uranium player, Paladin Energy Ltd (ASX: PDN) surged 56% last week to an 8-year high of 78 cents.

Explorers were also quick to re-rate, with players such as Boss Energy Ltd (ASX: BOE), Deep Yellow Limited (ASX: DYL), Peninsula Energy Ltd (ASX: PEN) and Vimy Resources Ltd (ASX: VMY) surging between 32% and 45%.

The best performing uranium stock last week goes to 92 Energy Ltd (ASX: 92E), surging 104% to 51 cents. The uranium explorer successfully listed on the ASX on 15 April at a listing price of just 20 cents.

What's driving ASX shares in the uranium sector?

The Motley Fool US reported that the Sprott Physical Uranium Trust (SPUT) Exchange Traded Fund began aggressively buying uranium from the spot market.

Sprott is the world's largest actively managed uranium fund that invests in physical uranium.

The fund's updates show that it bought a significant 900,000 pounds of uranium on 21 August and another 1.1 million pounds by the end of August.

The aggressive buying activity would continue through to September, with the ETF adding another 400,000 pounds on 2 September.

The immense buying on the spot market helped drive uranium prices to a six-year high of $35/lb.

The resurgence of spot prices initiated a frenzy of buying activity for ASX shares in the uranium sector last week.

In addition, The Motley Fool US highlighted another encouraging signal from the industry:

"… the world's largest uranium producer, Kazatomprom, announced its decision to keep production flat in 2022 and 2023, and meanwhile buy uranium from the spot market to meet its sales commitments through this year at least."

"Limited production and higher buying activity in the spot market, whether by an ETF or uranium miners to meet their contracted sales, is a near-perfect recipe to drive uranium prices higher."

The post Guess which sector last week's top performing ASX shares come from appeared first on The Motley Fool Australia.

ASX uranium shares are surging across the board this week, as uranium spot prices lift to 6-year highs of US$34.25/lb.

The largest of the ASX uranium shares, Paladin Energy Ltd (ASX: PDN) has rallied 56% over the past week to an 8-year high of 78 cents.

Explorers including Deep Yellow Limited (ASX: DYL), Boss Energy Ltd (ASX: BOE), Energy Resources of Australia Limited (ASX: ERA) and Peninsula Energy Ltd (ASX: PEN) have also experienced a flurry of buying activity, surging between 20% and 40% this week.

The newest of all ASX uranium shares, 92 Energy Ltd (ASX: 92E) is another big winner, surging 104% this week to 51 cents. The uranium explorer was successfully listed on the ASX on 15 April at a listing price of 20 cents.

Uranium prices lift to 6-year highs

Uranium prices have been in a prolonged bear market after spot prices peaked at about US$135/lb in June 2007.

Between early 2016 and March 2020, it lingered below US$30/lb, rendering many producers unprofitable and discouraging new exploration projects. This explains why many ASX uranium shares are still down more than 90% from 2007 highs.

It wasn't until after the initial March COVID-19 sell-off in 2020 that uranium spot prices managed to climb above US$30/lb. This week, prices touched US$35/lb for the first time in six years.

To add some perspective, Paladin Energy recently announced plans to restart its "globally significant" Langer Heinrich mine. The company estimates that it will cost approximately US$81 million to restart operations, with life of mine production cash costs of US$27/lb. In addition to freight and logistics of US$0.95/lb and sustaining capex of US$2.90/lb.

Encouragingly, Paladin Energy believes there is an emerging "structural supply deficit with growing demand". The company's March equity raising presentation stated the "current primary uranium supply [is] unable to meet current demand".

The post ASX uranium shares are booming this week. Here's why. appeared first on The Motley Fool Australia.

The 92 Energy Ltd (ASX: 92E) share price is surging on Friday after the company provided an update for its inaugural drilling program at the Gemini Project.

92 Energy is an Australian uranium exploration company searching for high-grade uranium in the Athabasca Basin, Saskatchewan, Canada. The company successfully listed on the ASX on 15 April, closing at 28.5 cents on the day.

At the time of writing, shares in the uranium explorer are up 43.55%, trading at 45 cents. Let's take a closer look at the news out today.

92 Energy share price jumps on radioactivity intersection

92 Energy announced that its Drill Hole GEM-004 intersected a 5.3-metre interval of elevated radioactivity from 229.9 metres to 235.2 metres.

According to the company, the 5.3m interval averages 760 cps [counts per second]. It includes a 0.7m sub-interval of stronger radioactivity (>1,000 cps) from 234.3m to 235.0m that averages 1,500 cps.

"The elevated radioactivity is associated with a broad zone of moderate to strong clay, hematite and quartz alteration from 216m to 255m, all of which are commonly associated with uranium mineralisation at unconformity-related uranium deposits in the Athabasca Basin," 92 Energy said.

Looking ahead, the company has paused its summer drilling program to allow for the collection and interpretation of drilling data.

The company said it expected the geochemical assay results within approximately 4 weeks. This could serve as a near-term catalyst for the 92 Energy share price.

In addition, the company will use this time to bolster radiometric safety protocols in anticipation of additional drilling within the area.

Uranium sector is booming

The uranium sector is surging with ASX-listed players such as Paladin Energy Ltd (ASX: PDN) and Deep Yellow Limited (ASX: DYL) rallying 50% and 34% in the past week.

This is off the back of uranium prices pushing to 6-year highs US$34.25/lb, according to Cameco.

The booming sector could be another factor driving the jump in the 92 Energy share price on Friday.

The post The 92 Energy (ASX: 92E) share price is rocketing 44% today. Here's why appeared first on The Motley Fool Australia.

April has witnessed a number of initial public offerings (IPOs) hit the ground running. As such the 92 Energy Ltd (ASX: 92E) share price will be on the radar when the company makes its ASX debut today.  

Newly listed shares such as Island Pharmaceuticals Ltd (ASX: ILA), Delorean Corporation Ltd (ASX: DEL) and Iceni Gold Ltd (ASX: ICL) all opened at least 45% higher than their initial listing prices. There is clearly an investor appetite for IPOs, which 92 Energy investors will be hoping bodes well for the company's float today.  

Why the 92 Energy share price is in focus

92 Energy is scheduled to make its ASX debut at 1 pm AEST on Thursday after successfully raising $7 million at an offer price of 20 cents per share. This gives the company a market capitalisation of approximately $13.2 million. 

92 Energy is an Australian uranium exploration company searching for high-grade uranium in the Athabasca Basin, Saskatchewan, Canada. 

The company recently acquired significant databases of uranium exploration opportunities based in both Saskatchewan and Eastern Europe.

This led to the 100% purchase of Thunderbird Metals Pty Ltd, which holds information regarding uranium exploration opportunities in Saskatchewan, and European Resources Pty Ltd, which holds information for Eastern European opportunities.  

Relying on the information acquired from Thunderbird, the company entered into an agreement with IsoEnergy Ltd, holding a 100% legal and beneficial interest in a number of uranium mineral claims adjacent to IsoEnergy. 

Current projects

92 Energy currently has three projects that have the potential for unconformity-type uranium mineralisation, which the Athabasca Basin is renowned for. The basin is estimated to have produced around a quarter of the world's uranium from 2016 to 2018. 

The Gemini Project is an early-stage uranium project located on the eastern margin of the Athabasca Basin, Saskatchewan, Canada. This project consists of six granted claims of which the company has 100% legal and beneficial interest in five. 

The company notes that most uranium exploration programs worldwide took place in the 1980s, but because of an oversupplied uranium market and low prices, there has been little activity in the area since. 

92 Energy believes there are considerable untested prospective areas with the potential to host unconformity-type uranium mineralisation. The use of modern geophysical methods and processing techniques will provide greater definition for the targeting of future drill holes.

The Tower Project is an early-stage uranium project also located on the eastern margin of the Athabasca Basin. The company considers its area to be underexplored with untested potential to host uranium mineralisation. Follow-up work is needed involving more detailed geophysics to define drilling targets. 

The Clover Project is located approximately 820 km northeast of Saskatoon. The company is looking to use the best available airborne magnetic data for mapping the basement rocks and important structures before drilling.

Could uranium demand drive the 92 Energy share price? 

Uranium fuels nuclear power generation which many believe has a critical role to play alongside renewables in a low carbon future.

Uranium prices were as high as ~US$130/lb around 2007 before diving to the mid US$20/lb mark between 2016 to 2019. This has resulted in a significant pullback in worldwide exploration and mine development. 

With that backdrop, Tim Gitzel, CEO of Cameco Corp the world's largest publicly traded uranium company, commented: 

Growing demand for nuclear power means growing demand for uranium. However, on the supply side there are some big question marks about where uranium will come from to fuel the world's growing demand for nuclear power due to years of persistently low prices that have led to planned production curtailments, lack of investment, the end of reserve life for some mines, shrinking secondary supplies, and trade policy issues, which are currently being amplified by unplanned disruptions due to the COVID-19 pandemic. These are the fundamentals that give us growing confidence the uranium market will undergo a transition similar to the conversion and enrichment markets.

The post 92 Energy (ASX:92E) shares to debut on ASX today appeared first on The Motley Fool Australia.