There are two massive concerns for investors and the world in general this year: energy and recession.

While energy prices rocketed last year after the Russian invasion of Ukraine, that supply-demand imbalance is expected to continue in 2023.

"We think the outlook for energy stocks is attractive because there's just not a lot of supply coming in," Schroders portfolio manager Ray David told The Motley Fool earlier this year.

"No one really wants to invest in fossil fuels or LNG or gas without the high prices to justify the returns, because everyone's quite worried about renewables and the ESG factors."

As for a recession, this will be a reality in some parts of the world, even if Australia does not quite hit the definition. 

Regardless, consumers and businesses will be suffering alike after ten months of steep interest rate rises.

'We would be buying into dips'

Gold is a commodity often spruiked as a "safe haven" for tougher economic times.

But the gold price did rocket up about 20% between November and February as recession fears struck investors.

Shaw and Partners portfolio manager James Gerrish likes the gold sector with a medium to long term horizon.

"Short term further downside wouldn't surprise," Gerrish said in a Market Matters Q&A.

"We are overweight the sector hence will not be averaging into further weakness if it eventuates but we would be buying into dips if we held no position."

The main ASX stock involved with gold production that he would buy now is Northern Star Resources Ltd (ASX: NST), especially if it falls to around the $10 mark.

The share price closed Wednesday at $10.35.

"Similarly we like Evolution Mining Ltd (ASX: EVN) ~$2.70, but following its average result we would be more likely to opt for Northern Star."

Evolution shares finished Wednesday at $2.76.

Is an old solution the new solution?

As for the energy crisis, nuclear power generation is coming back into favour in many countries as a way to instantly bolster their home-grown supply.

This has seen a revival in investor interest for uranium producers.

"A lot of moving parts are involved when it comes to the uranium price but appetite is building as other energy costs rise as the world strives to move away from fossil fuels," said Gerrish in another Market Matters Q&A.

"We are bullish uranium moving forward although when [it] starts to really gain traction is hard to forecast due to the uncertain geo-political backdrop."

Gerrish named two ASX shares that he would buy to gain exposure to uranium.

"Paladin Energy Ltd (ASX: PDN) and Boss Energy Ltd (ASX: BOE), they are both volatile stocks which we like into dips."

Gerrish's team would be tempted to buy when Paladin sneaks under the 70 cent mark and Boss dips below $2.50.

They closed Wednesday at 66.5 cents and $2.36 respectively.

The Market Matters team already owns Paladin Energy in its emerging companies portfolio.

The post Uranium and gold: What are the best ASX shares to buy for these minerals? appeared first on The Motley Fool Australia.

The fossil fuel energy shares have benefited from rocketing prices as much of the world scrambles to replace Russian supplies, restricted following Russia's invasion of Ukraine.

But what about ASX energy shares digging up a different source of power?

Yes, I'm talking about ASX uranium stocks.

How have these alternate ASX energy stocks been tracking?

Over the past 12 months, only one of the four leading uranium miners is in the green.

Here's how their share prices have moved since this time last year:

• The Paladin Energy Ltd (ASX: PDN) share price is down 20%
• Bannerman Energy Ltd (ASX: BMN) shares are down 25%
• The Deep Yellow Limited (ASX: DYL) share price has lost 24%
• Boss Energy Ltd (ASX: BOE) shares are up 3%

However, 2023 is looking more promising for these alternative ASX energy stocks. That's partly due to a 6% increase in the uranium price since 1 January, currently at US$51 per pound.

Here's how these companies have performed since the opening bell on 3 January:

• The Paladin Energy share price is up 5%
• Bannerman Energy shares are up 3%
• The Deep Yellow share price is down 3%
• Boss Energy shares are up 26%

Could uranium stocks be the next ones to rocket?

While the global demand for uranium isn't going to soar overnight, the trend is certainly pointing to long-term growth.

And investors with longer-term horizons could well help bid up ASX energy stocks focused on uranium in the lead-up to forecast increases in demand.

Even the Japanese look to be overcoming their fear of nuclear power. Those fears were stoked by the 2011 Fukushima Dai-ichi power plant disaster. The facility suffered a meltdown in the aftermath of an earthquake-driven tsunami.

That saw all of Japan's 54 reactors shut down for safety inspections.

Today, only 33 of those reactors remain in operable condition, and only 10 of those are up and running.

According to a report by Bloomberg, those 10 plants produce roughly 10% of Japan's electricity needs.

And in what could be good news for ASX energy stocks digging up uranium, a survey by Japanese publication Asahi Shimbun indicates that 51% of Japanese people now are in favour of restarting the idle reactors, with 42% opposed. That's the first time a majority has supported the move since the paper commenced polling in the wake of the meltdown.

Now, it's unlikely Japan will fire up all of its idle reactors overnight. Or even this year.

But prime minister Fumio Kishida is among those in favour of nuclear power. Atop extending the lifespan of existing plants, Japan is also looking into building next-generation reactors.

And it's not just Japan eyeing a big lift in nuclear power.

ASX energy stocks producing uranium could also see increased demand from France and Germany. Both nations are now considering extending the life spans of their own reactors, rather than shuttering them early.

The United Kingdom is going a step further, with ambitious plans to build a series of new modular reactors.

Then there's China, which has some 17 large-scale nuclear power stations under construction.

Again, this is a long-term trend.

But with Australia having the world's largest proven uranium reserves, ASX uranium shares are well-positioned to take advantage of the growing global interest in nuclear energy.

The post Could these be the next ASX energy stocks to rocket? appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are charging higher on Monday:

Boss Energy Ltd (ASX: BOE)

The Boss Energy share price is up 7% to $2.44. This morning, this uranium developer announced that it continues to make strong progress on all fronts at its Honeymoon project. Committed expenditure under the re-development program has now reached the halfway mark, totalling $55.1 million of the budgeted ~$105.4 million capital expenditure. Management notes that this major milestone means the project is running on time and on budget.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is up a further 6.5% to $4.85. Analysts at Morgans have responded to the lithium miner's quarterly update by reiterating their add rating with an improved price target of $5.40. Morgans highlights that Pilbara Minerals' production and revenue were ahead of expectations.

Sezzle Inc (ASX: SZL)

The Sezzle share price is up over 18% to 64 cents. This has been driven by the release of a trading update from the buy now pay later (BNPL) provider this morning. Sezzle revealed that in December it achieved its second consecutive month of profitability. This was underpinned by a 15.7% year-over-year boost in revenue to $19.9 million in December.

Zip Co Ltd (ASX: ZIP)

The Zip share price is up 15% to 78.5 cents. Investors have been buying Zip's shares today in response to Sezzle's aforementioned update. This appears to have sparked hopes that Zip will be able to achieve profitability as planned in the near future.

The post Why Boss Energy, Pilbara Minerals, Sezzle, and Zip shares are charging higher appeared first on The Motley Fool Australia.

Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Bell Direct market analyst Grady Wulff picks two ASX shares that are ready to cash in on major global thematics.

The ASX share for a comfortable night's sleep

The Motley Fool: If the market closed tomorrow for four years, which stock would you want to hold?

Grady Wulff: I think for us it's BHP Group Ltd (ASX: BHP), because it's diversifying into the battery metal space as we've just recently seen through its acquisition of Oz Minerals Limited (ASX: OZL) for $9.6 billion. 

This is really important to note, because to date, they're obviously one of the biggest miners in the world, but they hadn't diversified into the way forward, which is decarbonisation, greener future, greener energy — and now they've got that under their belt. 

They're really indestructible, because that's the way forward. The decarbonisation movement's not going anywhere, anytime soon. And the way that they needed to go, they've now gone, and they're going to capitalise on the greener movement. 

So I would keep them in the folio for four years, just because they're at the right place, right time and they're finally on board the electric train.

MF: Fantastic. People don't usually think of mining stocks to hold for that long, because commodity prices go up and down — but as you say, BHP's getting into the right areas?

GW: They are, absolutely.

Looking back

MF: Is there a move that you regret from the past? For example, a missed opportunity or buying a stock at the wrong timing or price.

GW: For us, I think investors will agree with me here, that not buying into Whitehaven Coal Ltd (ASX: WHC) or Boss Energy Ltd (ASX: BOE) in 2022 was the biggest regret. 

Both stocks looked really strong last year and no one could have predicted the global energy crisis, but we kind of saw it coming. So not getting into that is a massive regret. Both are up 200% and 600% year to date respectively. 

Boss Energy is a uranium producer. The price of uranium is set to double by the end of next year from $50 a pound to $100 a pound. And that's when Boss Energy comes online — the end of next year, with production expected then. So they're looking really well positioned to be capitalised from the tailwinds in the price of the commodity.

And then also Whitehaven Coal — we've seen thermal coal go through the roof up 500% year to date, which is just… And it's not turning around anytime soon. The European winter's coming, Russia has cut its coal supply to Europe. So what are they going to do? They're going to use other suppliers. 

So Whitehaven Coal and Boss Energy are definitely the ones that we regret. But in saying that, investors need to stick to their long-term plans and not invest with hindsight.

MF: Is it too late to buy into either of those?

GW: Is it too late? No, it's not too late. That's literally what I got asked the other day. 

Boss Energy, they're coming online next year, so they still have, the fact that they're already soaring is a big thing, but it's not too late, no. 

Whitehaven Coal, we have a hold on at the moment, only because in September their production was down 30% because of the open-cut mines because of La Nina weather events and flooding. So we have a hold on them at the moment, but Boss Energy is a speculative buy, so that's the one we're definitely keeping an eye on.

The post Climate and energy: Analyst tips 2 ASX shares perfectly placed for global crises appeared first on The Motley Fool Australia.

Though 2023 could present a different picture.

Soaring fossil fuel prices have sent the S&P/ASX 200 Energy Index (ASX: XEJ) up 39% year to date.

Yet most ASX uranium shares remain in the red.

For example, in 2022:

• The Paladin Energy Ltd (ASX: PDN) share price is down 7%
• Bannerman Energy Ltd (ASX: BMN) shares are down 35%
• The Deep Yellow Limited (ASX: DYL) share price has lost 27%
• And Boss Energy Ltd (ASX: BOE) shares have fallen 2%

Now, it's worth noting that all of the ASX uranium shares named above enjoyed very strong share price gains in 2021. Paladin shares, as one example, soared 267% over the full year. So a bit of a pause or retrace this year wasn't entirely unexpected.

But with nations across the world revisiting nuclear power as a reliable baseload source with negligible carbon emissions, ASX uranium shares could shine brightly again in 2023 and the years ahead.

Could this new UK plan help boost ASX uranium shares?

The United Kingdom doesn't make the list of nations with the most nuclear power plants in the pipeline. That honour goes to China, which has some 17 large-scale nuclear power stations under construction.

However, the UK is eager to extricate itself from the global energy crisis while moving away from coal and gas-fired power.

As The Times reports, Business secretary Grant Shapps is this week expected to announce the proposed creation of a new body called Great British Nuclear.

Great British Nuclear intends to develop 20 to 30 small modular nuclear reactors, built by Rolls-Royce.

The modular reactors are significantly cheaper to develop than traditional large-scale plants, with each reported to be able to power a million homes.

Australia's uranium trove

On completion, the modular reactors will need uranium to provide that power, as will the score of large-scale reactors being constructed in China and other nations the world over.

And with Australia sitting on the world's largest proven uranium reserves, ASX uranium shares could see the good times of 2021 come knocking once more.

The post Could this new UK plan help boost ASX uranium shares in 2023? appeared first on The Motley Fool Australia.

Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Maple-Brown Abbott portfolio manager Phillip Hudak names two ASX shares to buy that are under the radar of investors.

Hottest ASX shares

The Motley Fool: What are the two best stock buys right now?

Phillip Hudak: First of all, I'd say Ridley Corporation Ltd (ASX: RIC). 

Ridley has transitioned from a turnaround story with the closing of underutilised mills, lifting plant utilisation, lowering costs, and developing new products. We believe that the company looks to be transitioning to the early stages of the upgrade cycle. We believe that the company has multiple potential earnings drivers, including further supply chain rationalisation. 

Second of all is small project efficiencies, as well as the potential of market share gains coming through. The balance sheet is looking more attractive with a buyback in place for this current financial year. The company's experienced a reasonable re-rate, however, we see upside to earnings and upside to balance sheet flexibility coming through.

MF: There has been quite a re-rate in share price just over the last three months, hasn't there? What was the catalyst for that?

PH: The company actually has a strong strategic vision over FY '23 and '24 that they've actually outlaid to the market, as well as the stepping stones in relation to those earning drivers coming through there. 

Also, the balance sheet is in a lot better condition from the previous management there, and this provides the company with a lot more optionality, either via a buyback or the potential of acquisitions to further grow earnings going forward. 

I suppose from our perspective, while there are the stepping stones to see earnings growth, there are key risks, including the recent floods as well as agricultural seasonality. Although Ridley is less volatile as compared to other agricultural stocks — commodity price fluctuations and continuation of supply chain disruptions, there are signs that these are easing.

MF: Great, and your second pick?

PH: Second pick is Boss Energy Ltd (ASX: BOE). This is a uranium producer. 

Before I discuss the company, I would like to touch on the industry structure and the environment. Energy security has been a key concern that has emerged over the past six to 12 months. Particularly given the geopolitical tensions, notably between Russia and Ukraine, has increased the focus on energy security across the world. 

This has become particularly important in the uranium space, particularly given that 45% of uranium production comes from Kazakhstan and a similar level of material processing is from Russia. The shift to renewables, notably wind and power, has had some shortcomings with providing reliable base load power during the transition period.

In addition, public and political sentiment has changed regarding nuclear [power]. Some examples include nuclear being recently included in the EU taxonomy in addition to the halting of nuclear power plants closures in the US and Europe, the restart of idled nuclear power plants in Japan, and the ambitious Chinese rollout of new reactors going forward.

There is a significant shortfall of supply forecast by the World Nuclear Association, with restarts required into the middle of the 2020s. The current spot price is below the marginal cost of production and so far suppliers have been reasonably disciplined in relation to restarts and waiting for prices to recover to make a reasonable return over the cycle. 

Specifically to Boss, Boss Energy offers a low-cost restart operation in the uranium-friendly jurisdiction of South Australia. There is existing infrastructure in place and less risk in relation to cap-ex blowouts versus other mining companies out there that would be starting from scratch. The company's well positioned to take advantage of the current rising uranium market environments with offtake contracts to be signed.

There's fast-tracked production expected by the end of calendar year 2023, and expected to produce 2.45 million pounds per annum going forward. There's attractive return metrics. It's a low operating cost with an all-in sustaining cost of $25.60 per pound versus the spot price, which is roughly around that $50 mark coming through there. 

The key risk for this company, in addition to the sector, is another nuclear disaster similar to Fukushima or Chernobyl which would set the industry back a decade.

MF: I see the share price shot up about a year ago. Was that because they announced that they were going to restart the site? 

PH: Yeah, a year ago there was positive sentiment regarding the sector. You actually had the Sprott Physical Uranium Trust, which has entered the market and effectively has been buying surplus pounds in the market, which had a positive catalyst for the uranium price, as well as positive announcements from an industry perspective in relation to public and political sentiments changing regarding nuclear.

The post Feed and yellow cake: Fundie's 2 ASX shares to buy that you've not thought about appeared first on The Motley Fool Australia.

The uranium explorer's shares rose 8% to $2.53.

Why did the Boss Energy share price surge higher?

There were a couple of catalysts for the rise by the Boss Energy share price today.

The first was a major rebound by ASX shares on Thursday following a very strong night of trade on Wall Street.

This saw the S&P/ASX 200 Index (ASX: XJO) end the day with a gain of 1.45% to 6,555 points.

What else?

Also giving the Boss Energy share price a boost was a broker note out of Bell Potter.

According to the note, the broker has retained its speculative buy rating with an improved price target of $3.51.

This implies potential upside of 44% for investors over the next 12 months even after today's strong gain.

It commented:

We maintain our Speculative Buy recommendation and increase our valuation to $3.51/sh (previously $3.32/sh). We have rolled our model forward, which contributed the modest 6% increase in our valuation. We make no changes to forward earnings in this note. Uranium markets are recovering from a cyclical low with limited near-term supply capacity and further demand upside driven by decarbonisation efforts.

BOE represents an opportunity to gain exposure to a fully permitted project, currently on care and maintenance, in a tier 1 jurisdiction, with a comparatively short lead time to first production. In addition to this, we believe there is resource expansion upside in the current portfolio, with drilling currently underway.

The post Boss Energy share price jumps 8% on bullish broker note appeared first on The Motley Fool Australia.

The Boss Energy Ltd (ASX: BOE) share price is having a woeful day on the ASX.

At the time of writing, the uranium producer's shares are swapping hands at $2.68, down 7.90%.

This comes as the broader Aussie stock market is also tumbling on the back of bearish sentiment after Wall Street sank overnight.

Shares in fellow miners, Paladin Energy Ltd (ASX: PDN) and Deep Yellow Limited (ASX: DYL) are down 4.44% and 8.37%, respectively.

What's causing Boss Energy shares to fall today?

Investors are offloading the Boss Energy share price after uranium prices have continued their descent in the past few days.

Otherwise known as 'yellowcake', the heavy metal is fetching for US$50.85 per pound, a drop of 0.68% from the previous close.

At the beginning of the week, uranium was being traded around US$52.68 before the energy sector tanked.

For context, the S&P/ASX 200 Energy (ASX: XEJ) sector is the worst performer across the ASX today with a 4.11% decline.

In addition, the Global X Uranium ETF (URA) nosedived by 4.04% last night. The index fund covers a number of companies involved in uranium mining and the manufacturing of nuclear equipment.

This comes as investors have pulled out of the commodity markets in fear of the Fed Reserves' impending rate hike.

When interest rates are lifted, this puts pressure on the stock market.

Nonetheless, as reported by my Fool Colleague Brooke the current global energy crisis could have a positive impact on uranium in the medium-term.

Boss Energy share price snapshot

Despite today's losses, the Boss Energy share price is up 20% in 2022.

However, when looking over the past 12 months, the share is relatively flat.

Based on today's price, Boss Energy presides a market capitalisation of roughly $1.03 billion.

The post Why is the Boss Energy share price melting 8% lower? appeared first on The Motley Fool Australia.

ASX uranium shares are suffering at the hands of the market on Friday, with some favourites tumbling as much as 5.5%.

Their woes follow a rough overnight session for some major global uranium names and come amid a shocking session for S&P/ASX 200 Index (ASX: XJO) energy stocks.

Shares in ASX 200 uranium producer Paladin Energy Ltd (ASX: PDN) are falling 3.9% right now.

Meanwhile, those of Bannerman Energy Ltd (ASX: BMN), Deep Yellow Limited (ASX: DYL), and Boss Energy Ltd (ASX: BOE) have slumped 4.6%, 3.3%, and 5.5% respectively.

For comparison, the ASX 200 has slipped 1% right now while the S&P/ASX 200 Energy Index (ASX: XEJ) has fallen 2.6%.

Let's take a closer look at what might be going wrong for ASX uranium shares today.

What's dragging on ASX uranium shares today?

ASX uranium shares are underperforming on Friday, dumping some of the gains made over the last few weeks.

Today's fall included, the Bannerman share price has gained 46% over the last 30 days. Meanwhile, that of Paladin Energy is up 19%. Thus, their latest slump could partly represent profit taking.

It could also be a response to recent slumps recorded by major global uranium names.

The Canadian-listed Sprott Physical Uranium Trust – home of nearly US$3 billion worth of the energy commodity – fell 2.3% overnight. While that leaves it 5% lower than it closed last week's trade, it's still 15% higher than it was this time last month.

Meanwhile, the US-listed Global X Uranium ETF plunged 4% to its lowest price in nearly two weeks.

Their latest dips follow a rally, seemingly spurred by concerns of a global energy crisis.

A doubling down on nuclear energy – and, therefore, uranium – could be the next frontier for nations impacted by an energy crunch brought on by Russia's invasion of Ukraine, as my Fool colleague Bernd reports.

And with Australia housing much of the world's uranium resources, ASX shares could be in line to benefit.  

The post Why are ASX uranium shares getting smashed on Friday? appeared first on The Motley Fool Australia.

ASX uranium shares have been shooting the lights out over the past month.

With nations around the world gripped by an unprecedented energy crisis and largely intent on moving away from fossil fuels, nuclear energy is back on the agenda to provide reliable baseload power.

To name a few examples… India is planning a series of new nuclear plants. France is working to restart plants closed for maintenance with plans for 14 new plants.

Japan is reopening nuclear power stations shuttered since the Fukushima disaster in 2011. The Japanese government is also investigating developing next-generation modular reactors.

With news of nations' expanded nuclear power ambitions hitting the headlines regularly this past month, ASX uranium shares have trounced the index.

How have ASX uranium shares been performing?

Since this time last month, the All Ordinaries Index (ASX: XAO) is down 2.2%. Meanwhile, leading ASX uranium shares have all charged higher.

The Paladin Energy Ltd (ASX: PDN) share price, for example, is up 21.2% over the month.

Over that same time, Boss Energy Ltd (ASX: BOE) shares are up 16.1%, and the Deep Yellow Ltd (ASX: DYL) share price has surged 48.2%.

With those gains already in the bag, is there more growth to come?

Demand expected to ramp up

For some expert insight into the outlook for ASX uranium shares, we defer to the analysts at Macquarie Equities.

According to Macquarie analyst Jon Scholtz (courtesy of The Australian):

A ramp-up in demand is expected with recent news that Japan ordered the development of new nuclear reactors, and 17 existing reactors to be reactivated and that France stated its nuclear will be at full capacity by the winter. Germany also appears to be rethinking reactor decommissioning in light of energy security.

Scholtz said that both Boss Energy and Paladin were "fully licensed in known uranium jurisdictions and have a near-term path to market buoyed by a positive uranium outlook".

With the resurgent global interest in nuclear power, Macquarie Equities raised its price forecast for uranium by 17% for the 2024 financial year and by 21% for FY25.

With those higher prices in mind, the broker also increased its price targets for the leading ASX uranium shares.

Macquarie has a new target for the Paladin share price of $1.10. That's 15.8% above the current price of 95 cents.

The new target for the Boss Energy share price is $3.30, 14.2% above the current price of $2.89 per share.

The post ASX uranium shares have had a stellar month. Are they just getting started? appeared first on The Motley Fool Australia.

ASX uranium shares enjoyed another strong run higher on Tuesday.

Meanwhile, by close of trade, the All Ordinaries Index (ASX: XAO) had given up its earlier gains and finished the session down by 0.26%. Despite it being widely expected, the dip came following confirmation from the RBA that it has raised interest rates by 0.5%

But this didn't seem to faze these leading ASX uranium shares which concluded Tuesday's session as follows:

• Boss Energy Ltd (ASX: BOE) shares up 7.31% to $2.79
• Paladin Energy Ltd (ASX: PDN) shares up 7.78% to 90 cents
• Bannerman Energy Ltd (ASX: BMN) shares up 8.29% to $2.35
• Deep Yellow Ltd (ASX: DYL) shares up 6.8% to $1.10
• Alligator Energy Ltd (ASX: AGE) shares up 6.25% to 6.8 cents

That's some impressive performance today. But what's the outlook for ASX uranium shares moving forward?

What's the outlook for ASX uranium shares in September?

All the companies named above are also well up since this time last month.

While there are no guarantees as to how share prices will move over the rest of September, arguably the foundations are being laid to support strong and rising global demand for uranium. This should, in theory, support the miners longer term.

Just two weeks ago, Japan's government announced it will investigate the development of next-generation nuclear power plants and reopen seven currently shuttered plants.

As you might expect, ASX uranium shares rocketed higher following the announcement.

And Japan is far from the only nation looking to ramp up its nuclear power generation.

Global energy crisis spurs nuclear power ambitions

With the world facing a global energy crisis, exacerbated by Russia's invasion of Ukraine, countries around the world are extending the lives of existing reactors or rolling out plans to build new ones.

Those nations include India, Germany, Belgium, and France.

As reported by the Financial Times, France's state-controlled energy company, EDF, is moving to restart 32 of the nation's reactors that have been taken offline for maintenance. That represents more than half of France's 56 nuclear plants.

French energy minister Agnès Pannier-Runacher said, "EDF has committed to restarting all its reactors for this winter."

Reactors, of course, require uranium.

Today, Kazakhstan produces more than 40% of the global uranium. Australia lags far behind in production, though Australia has at least 25% of the world's proven uranium resources.

As more nations turn to nuclear power for their baseload generation, investors will be hoping this creates some long-term tailwinds for ASX uranium shares.

The post What's the outlook for ASX uranium shares in September? appeared first on The Motley Fool Australia.

Uranium shares Boss Energy Ltd (ASX: BOE) and Deep Yellow Ltd (ASX: DYL) were added to the ASX 300 today.

Boss shares lifted 5.9% to a high of $2.67 a share in intraday trading, finishing the day 2.38% higher at $2.58 a share.

Meantime, the Deep Yellow share price gained 3.9% at one stage, touching $1.065 before closing the day 0.49% lower at $1.02.

Let's delve into this news in a little more detail.

Quarterly rebalance

Boss and Deep Yellow are among 16 companies that have been added to the ASX 300 as part of the index's September quarterly rebalance.

Deep Yellow is developing the Tumas and Mulga Rock uranium projects. Tumas is located in Namibia, while Mulga Rock is in Western Australia.

The company says it is aiming to become a "leading, reliable, long term uranium supplier into a growing market". Deep Yellow recently completed a merger with Vimy Resources Limited.

Meanwhile, Boss Energy is developing the Honeymoon Uranium Project in South Australia. Boss is targeting production by the December quarter of 2023.

Energy matters were in focus today amid news Russia has cut gas exports to Europe via the Nord Stream 1 gas pipeline. Uranium is used as a fuel for nuclear power plants. The S&P/ASX 200 Energy Index (ASX: XEJ) also closed 3.78% higher on Monday.

Share price snapshot

The Boss Energy share price has soared 44% in the past 12 months, while Deep Yellow's has risen 12%.

For perspective, the ASX 300 Index has fallen more than 9% in the past year.

Boss Energy has a market capitalisation of $913 million, while Deep Yellow's is around $750 million.

The post 2 ASX uranium shares added to the ASX 300 today appeared first on The Motley Fool Australia.

It's a decent day for the markets overall, with the All Ordinaries Index (ASX: XAO) posting a nice rebound following yesterday's sell-off, up 0.5% as we head into the lunch hour.

ASX energy shares are doing even better, as witnessed by the 1.6% intraday gain on the S&P/ASX 200 Energy Index (ASX: XEJ).

But ASX uranium shares are leaving those gains far behind.

Here's how some of the top stocks in the sector are tracking at the time of writing:

• Boss Energy Ltd (ASX: BOE) shares are up 6.7%
• Paladin Energy Ltd (ASX: PDN) shares are up 7.8%
• Bannerman Energy Ltd (ASX: BMN) shares are up 23.1%
• Deep Yellow Limited (ASX: DYL) shares are up 14.7%
• Alligator Energy Ltd (ASX: AGE) shares are up 21.1%

What's driving investor interest in ASX uranium shares?

Investors have been considering the likely growth in demand for uranium, following decades when the radioactive energy source was out of favour.

With the world looking to rapidly slash carbon emissions – and coming to the realisation that renewables are unlikely to fully fill the void left by coal, gas and oil – nations across the globe are turning their attention back to a nuclear-powered future.

Last week, Japan's government announced its intention to ramp up the nation's nuclear power generation. Japan plans to reopen seven currently shuttered plants and is looking to develop new generation nuclear power plants. That news saw ASX uranium shares charging higher.

But it's not just Japan.

While the nuclear conversation is ongoing in Australia, Belgium and Germany are both looking at extending the lives of their nuclear plants amid a crushing energy shortage exacerbated by Russia's invasion of Ukraine.

Meanwhile, France revealed it intends to build 14 new nuclear plants later this decade. And India is also looking at expanding its nuclear power capacity. Nuclear energy is currently the fifth largest source of electricity in the world's second most populous nation.

And when it comes to driving interest in ASX uranium shares, let's not forget Elon Musk.

On Saturday the world's richest man tweeted, "Countries should be increasing nuclear power generation! It is insane from a national security standpoint & bad for the environment to shut them down."

Could this tiny development offer further tailwinds?

With plenty of tailwinds already behind them, ASX uranium shares could be getting an extra boost from the US Nuclear Regulatory Commission (NRC).

On 29 July the NRC gave the green light (with a few formalities pending) to a tiny modular nuclear reactor designed by Oregon based NuScale.

As Popular Mechanics reports, this is only the seventh reactor design to ever be approved within the US and the first modular one. The reactor is about the size of two city buses, tiny compared to conventional plants.

According to Diane Hughes, vice president of marketing and communications for NuScale:

Especially while the global community is suffering from crises like volatile energy prices and climate-driven extreme weather events, the need for carbon-free energy solutions like NuScale's small modular reactors has never been greater…

Potential customers from numerous countries have expressed interest in our technology, and we currently have 18 signed and active memorandums of understanding with customers in 11 countries interested in, and considering, a deployment of a NuScale power plant.

With that kind of growth in interest, ASX uranium shares could see a sustained, long-term boost in the demand for their product.

How have these ASX uranium shares been tracking?

We looked at today's price action above.

Here's how these top ASX uranium shares have performed over the past 12 months compared to the 7% loss posted by the All Ordinaries.

• Boss Energy Ltd (ASX: BOE) shares gained 1,365%*
• Paladin Energy Ltd (ASX: PDN) shares gained 60%
• Bannerman Energy Ltd (ASX: BMN) shares gained 48%
• Deep Yellow Limited (ASX: DYL) shares gained 47%
• Alligator Energy Ltd (ASX: AGE) shares gained 123%

(*Note, ASX uranium share Boss Energy underwent a share consolidation on 29 November. This saw the number of shares reduced by a factor of eight. The actual share price increase for Boss Energy is 85% over 12 months.)

The post Could this tiny development add even more fuel to ASX uranium shares? appeared first on The Motley Fool Australia.

ASX uranium shares are "down materially and have completely decoupled with the other energy groups for no really good reason at all", according to energy, mining, and commodities expert Ben Cleary.

Cleary is the portfolio manager of listed investment company (LIC) Tribeca Global Natural Resources Ltd (ASX: TGF).

In an interview with Livewire, Cleary said he was "very bullish" on uranium shares. 

What's happening with ASX uranium shares?

Cleary said uranium shares have lost value recently but are well-positioned for a big future. This is especially because several governments have recently approved the commodity for energy generation.

Cleary said:

Uranium correlates very well with other energy commodities, whether it's gas or coal or oil — as it should do because it's obviously competing as an alternative energy source. 

However, year to date, uranium equities are down materially and have completely decoupled with the other energy groups for no really good reason at all.

In fact, they've been correlating more with cryptocurrencies and digital assets, for whatever reason.

Cleary expects to see this trend rapidly reverse course in the next few months. As a result, he reckons most ASX shares in the uranium space have a 30% to 50% upside from here.

He added:

The European Union has just approved uranium as an approved energy source. The American government are very supportive of nuclear generation. So is China. 

So uranium has a really strong governmental backing as a baseload energy source given it produces lower carbon emissions versus other fossil fuels going forward.

Uranium shares have declined in 2022 due to rising concerns about recession, as well as China's strict COVID-19 policy.

Which ASX uranium share is a buy?

Cleary's pick of the bunch is Boss Energy Ltd (ASX: BOE).

Boss Energy is one of the larger ASX shares in the uranium sector with a market capitalisation of $853.24 million. It holds interests in the Honeymoon uranium project in South Australia. It also holds interests in nickel-copper exploration projects in Scandinavia as well as gold interests in Burkina Faso.

The Boss Energy share price is up 1,300% over the past 12 months (yep, you read that right). But in the year to date (ytd), it has declined by 2%.

Here is a summary of the performance of the other big players in the uranium space:

• The Paladin Energy Ltd (ASX: PDN) share price is up 44% over 12 months and down 21% ytd
• The Energy Resources of Australia Limited (ASX: ERA) share price is down 4% over 12 months and down 29% ytd
• The Silex Systems Ltd (ASX: SLX) share price is up 243% over 12 months and up 143% ytd
• The Bannerman Energy Ltd (ASX: BMN) share price is up 33% over 12 months and down 27% ytd
• The Deep Yellow Limited (ASX: DYL) share price is up 10% over 12 months and down 18% ytd

The post The ASX shares with 30% to 50% upside: fundie appeared first on The Motley Fool Australia.

As we recently covered here, many uranium shares outperformed the market during the 2022 financial year. This includes Boss Energy Ltd (ASX: BOE) and Paladin Energy Ltd (ASX: PDN), which recorded strong gains over the period despite broad sector weakness in April.

But that was then. What about the future? Let's take a look and see what may lie ahead for ASX uranium shares in FY 2023.

What is the outlook for ASX uranium shares?

The team at Bell Potter has been looking at the uranium sector and believes that weakness since April has created "selective opportunities."

It commented:

ASX Uranium equities are on average down 44%, vs the ASX300 Resources Index of 19%. The sell-off, in our opinion, has been indiscriminate in the case of BOE and PDN and completely irrespective of 1) broader uranium market fundamentals and 2) company specific situations. The April sell-off has created an interesting opportunity to build/establish positions in either of these two companies.

Valuations for BOE and PDN 40% off from April highs – BOE and PDN are now trading at ~40% discounts to their April high, on a Market Value/ Resource pound metric. In addition to this, we believe there is further upside for both businesses as per our stated valuations.

However, the broker does acknowledge that "shorts continue to build," with both companies experiencing rising short interest despite the selloff.

Nevertheless, Bell Potter has reiterated its speculative buy ratings on both companies. It has a $3.32 price target on Boss Energy's shares and a $1.06 price target on Paladin Energy's shares.

Overall, the broker remains positive on uranium due to its belief that reach net zero ambitions would be difficult with nuclear power.

The post Will ASX uranium shares be market-beaters in FY23? appeared first on The Motley Fool Australia.

What happened with uranium prices in FY22?

Uranium prices tracked higher over the first nine months, reaching more than US$64 per pound in mid-April, according to data from Trading Economics. Since then, prices have fallen back to US$48 per pound, though that's still well above the US$30 per pound on 30 June 2021.

Global interest in the metal, used in nuclear reactors to generate electricity, was rekindled in 2021 amid increased focus on slashing carbon emissions. Whilst nuclear energy entails having to deal with the radioactive waste post electricity production, it essentially produces no greenhouse gases.

Soaring energy prices in 2022, spurred higher by Russia's invasion of Ukraine, has also seen more political interest in using uranium to provide baseload power.

So, how did all this impact ASX uranium shares?

ASX uranium shares broadly beat the benchmark

All up, it was a mixed bag for investors of ASX uranium shares in FY22, though most beat the benchmark index.

Here's how some of the top producers and explorers stacked up against the All Ordinaries Index (ASX: XAO) over the 12 month period.

• All Ordinaries Index(ASX: XAO) lost 11.1%
• Paladin Energy Ltd (ASX: PDN) closed FY21 trading for 52 cents and finished FY22 at 58 cents, a gain of 11.5%
• Deep Yellow Limited (ASX: DYL) kicked off FY221 at 72 cents and finished at 60 cents, a loss of 16.7%
• Bannerman Energy Ltd (ASX: BMN) opened and closed the 2022 financial year at 17 cents per share, for a change of 0.0%
• Boss Energy Ltd (ASX: BOE) finished FY21 at 18 cents and closed FY22 at $1.77, a gain of 22%

Looking over that list you'll see that three of the four ASX uranium shares handily outperformed the All Ordinaries in FY22.

You may also be questioning our maths.

If the Boss Energy share price went from 18 cents to $1.77, surely that's a gain of 833%, not 22%?

The discrepancy there is in the share consolidation that Boss Energy carried out back in November. That saw every eight Boss Energy shares consolidated into one 'new' share. With that in mind, the FY22 closing price for this ASX uranium share in relatable terms to its FY21 closing price needs to be divided by eight.

So instead of $1.77, we get 22 cents.

Still, an impressive 22% year-on-year gain for Boss Energy.

The post The ups and downs for ASX uranium shares in the 2022 financial year appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

Boss Energy Ltd (ASX: BOE)

The Boss Energy share price is up 3% to $2.52. This uranium developer's shares were given a boost this morning from a broker note out of Macquarie. According to the note, the broker has retained its outperform rating and $3.20 price target on Boss Energy's shares. This follows news that the US is seeking to wean itself off Russian uranium.

Crown Resorts Ltd (ASX: CWN)

The Crown share price is up 2% to $13.02. Investors have been buying the casino and resorts operator's shares following the release of an update on Blackstone's takeover bid. According to the release, the bid has received approval from the Victorian Gambling and Casino Control Commission and New South Wales Independent Gaming and Liquor Authority. This brings the $8.9 billion takeover a step closer to completion.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is up 2% to $12.83. This morning the fund manager announced the return of co-founder Hamish Douglass in a new consultancy role. From October, Mr Douglass will provide investment insights, including geopolitical and macroeconomic views.

Shaver Shop Group Ltd (ASX: SSG)

The Shaver Shop share price is up 4% to $1.06. The catalyst for this was the release of a trading update from the retailer. That update reveals that the grooming and beauty products retailer's sales are up 5.7% so far in the second half and 3.9% financial year to date. A key driver of this growth has been its online business, which reported year to date sales growth of 27.5%.

The post Why Boss Energy, Crown, Magellan, and Shaver Shop shares are rising appeared first on The Motley Fool Australia.

ASX uranium shares are surging today following in the footsteps of US markets overnight.

Shares soaring include Paladin Energy Ltd (ASX: PDN), Bannerman Energy Ltd (ASX: BMN), Peninsula Energy Ltd (ASX: PEN) and Boss Energy Ltd (ASX: BOE).

So let's take a look at why ASX uranium shares are storming ahead?

ASX uranium shares soar

Peninsula shares are rocketing 20%, Paladin shares are soaring nearly 13%, Bannerman Energy shares are jumping 13%, while Boss Energy shares are 11% ahead.

Uranium shares are following a similar trend to global markets overnight. The Global X Uranium Exchange Traded Fund jumped 5.98% in US markets. US uranium producer Energy Fuels Inc (NYSE: UUUU) leapt 12.94% while Canadian headquartered Uranium giant Cameco Corp (NYSE: CCJ) leapt 8%.

Investors appear to be buying up uranium shares following some positive news out of the United States.

The Biden administration is seeking Congress support for a $4.3 billion plan to buy enriched uranium from domestic producers, Bloomberg reported. A source told the publication the aim is to halt reliance on Russian imports of the nuclear fuel.

ASX listed Peninsula owns the Lance Uranium Project in the state of Wyoming, in the United States. Paladin Energy is working on the Michelin project, nearby in Canada.

In news closer to home, Opposition leader Peter Dutton has reignited the nuclear energy debate, saying he is "not afraid to have a discussion on nuclear". Uranium is used as the fuel in nuclear power plants. In an interview with ABC Radio National, Dutton added:

If we want to have legitimate emission reductions, if we want to lower electricity prices, then that's exactly the path that President Macron has embarked on in France, it's what Prime Minister Johnson is talking about in the United Kingdom…

However, Queensland Energy Minister Mick de Brenni has pushed back on the plan today. He reportedly claimed nuclear energy is "dangerous", the Canberra Times reported.

The post Why are ASX uranium shares having such a cracker run on Wednesday? appeared first on The Motley Fool Australia.

It's a rough day on the market for most ASX uranium shares despite seemingly good news for the industry. In fact, there's no clear reason behind uranium stocks' underperformance today.

The price of the nuclear-necessity seems to be on a slight upwards trend – though it's still significantly lower than it was five weeks ago. Additionally, a major South Australian uranium project was finally given the green light after being put on the back burner years ago.

Let's take a closer look at what might be weighing on ASX uranium shares.

What's weighing ASX uranium shares down?

ASX uranium shares are having a rough trot today alongside many of their peers.

In fact, the S&P/ASX 200 Materials Index (ASX: XMJ) is currently down 0.64%, with lithium miners among its worst performers. At the same time, the S&P/ASX 200 Energy Index (ASX: XEJ) has slumped 0.14%. For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.1%.

Meanwhile, the share prices of uranium producers Paladin Energy Ltd (ASX: PDN), Deep Yellow Limited (ASX: DYL), and Bannerman Energy Ltd (ASX: BMN) are down 8.18%, 5.96%, and 8.7%, respectively.

Interestingly, Boss Energy Ltd (ASX: BOE) is also 5.7% lower, despite good news out of its Honeymoon uranium project.

The company announced work at the project will restart this morning after being put on ice in 2013 amid untenable uranium prices.

Speaking of uranium prices, after a multi-year lull, the spot price of uranium started to gain traction in 2021 but, since reaching a notable high in April, the commodity's value has slumped around 20%. Though, it has gained around 4% since this time last week.

Thus, ASX uranium shares could be slipping in response to the commodity's strung-out tumble.

Additionally, the world's largest physical uranium fund, the Sprott Physical Uranium Trust, has fallen 9% over the last 30 days.

It's worth noting that, today's falls included, all mentioned ASX uranium shares except for Deep Yellow have fallen relatively in line with the trust over that time.

They've each slipped between 8% and 10% over the last month. Meanwhile, Deep Yellow's stock has dumped 19%.

The post What's going wrong for ASX uranium shares on Wednesday? appeared first on The Motley Fool Australia.

The Boss Energy Ltd (ASX: BOE) share price is having a woeful day on the ASX despite the company's latest positive announcement.

At the time of writing, the uranium producer's shares are swapping hands at $2.30, down 5.35%.

Boss Energy share price falls on Honeymoon decision

The Boss Energy share price is falling today despite the board's final investment decision (FID) regarding the Honeymoon Uranium Project.

This comes as the broader sector containing Boss and its peers is treading lower in Wednesday's trade.

Shares in fellow miners Paladin Energy Ltd (ASX: PDN) and Deep Yellow Limited (ASX: DYL) are down 9.12% and 4.64%, respectively.

According to the Boss Energy release, its board of directors approved the FID to develop Honeymoon this year.

The company will now accelerate construction, ensuring Honeymoon remains on track for first production in the quarter ending December 2023.

This will ramp up to a steady-state rate of 2.45Mlb of triuranium octoxide (U3O8), a compound of uranium, per year.

Boss Energy completed the pivotal front-end engineering design (FEED) study during the previous quarter.

It showed that Honeymoon will be an economically robust project with an internal rate of return (IRR) of 47% at a US$60/lb of U308.

The all-in sustaining cost (AISC) is forecast to be around US$25.60/lb over the life of the mine.

In March, Boss Energy secured $125 million through a capital raise to fund the development of its Honeymoon project. This includes $113 million of estimated capital development costs for re-starting Honeymoon.

What did management say?

Boss Energy managing director Duncan Craib commented on the company's progress:

This final investment decision puts Boss firmly on track to be Australia's next uranium producer.

We are fully-funded with no debt, fully-permitted and extensive infrastructure in place. Our front-end engineering studies are completed and we are ready to order key equipment and start construction immediately.

This puts us in an extremely strong negotiating position with utilities and ensures we can capitalise on the looming uranium supply deficit.

In parallel with the above achievements, the uranium price has continued to hold steady. As a result, the value of Boss Energy's 1.25 million pound stockpile of U308 is $59.38 million.

The combination of the company's successful raising and uranium stockpile means it's fully funded through to production and cash flow at Honeymoon.

The Boss Energy share price is up around 2% for the first six months of this year.

The post Boss Energy share price slides 5% despite project milestone appeared first on The Motley Fool Australia.