The Peninsula Energy Ltd (ASX: PEN) share price exploded today following positive news for the global uranium market.

Peninsula shares spent all day in the green, surging to close 20% higher at 21 cents apiece. In contrast, the S&P/ASX 200 Index (ASX: XJO) index lifted just 0.36% today.

So why did the Peninsula Energy share price have such a good day?

Biden administration target uranium production

It appears investors were interested in buying up Peninsula shares following news out of the United States overnight.

According to a Bloomberg report, US Government energy officials are meeting with congress staff to discuss a uranium deal.

President Joe Biden's administration is reportedly seeking support for a $4.3 billion plan to buy uranium from domestic producers. Peninsula Energy is a mineral explorer focused on the Lance Uranium Project in the US state of Wyoming. 

The company is intent on expanding its project in the US. On 16 May, Peninsula Energy announced it had boosted its North American board presence with the appointment of Brian Booth as a non-executive director.

Commenting on the company's plans for the Lance Uranium Project in the US, chairman John Harrison said:

We are very happy to secure the experience and services of Brian as a non-executive director as we embark on a critical six-month period for the company.

Brian brings extensive North American mining and capital markets experience and an impressive history of successfully guiding and leading companies through the mining lifecycle.

I much look forward to working with Brian as we work towards transitioning Lance into production.

Peninsula plans to make a final investment decision on the Lance project in the 2022 calendar year.

Peninsula Energy share price snapshot

The Peninsula share price flew higher than its ASX uranium peers today. The Paladin Energy Ltd (ASX: PDN) jumped almost 13% at the close, Boss Energy Ltd (ASX: BOE) surged 12%, while Bannerman Energy Ltd (ASX: BMN) leaped 9.5%.

The Peninsula Energy share price has soared 27% in the past 12 months, lifting 5% year-to-date.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has shed 2% in the past year.

Peninsula Energy has a market capitalisation of about $209 million based on the current share price.

The post Peninsula Energy share price soars 20% amid US news on uranium market appeared first on The Motley Fool Australia.

ASX 200 energy shares are having a stellar day on the market today.

The S&P/ASX 200 Energy Index (ASX: XEJ) is currently up 4% to 11,117 points. For perspective, the S&P/ASX 200 Index (ASX: XJO) is 0.4% in the green today.

Let's take a look at what's impacting ASX 200 energy shares today.

ASX 200 energy shares rise

ASX 200 energy shares ahead today include uranium shares Deep Yellow Limited (ASX: DYL), up 9.72% and Paladin Energy Ltd (ASX: PDN), rising 13.12%. Bannerman Energy Ltd (ASX: BMN) shares are jumping 16.67%, while Peninsula Energy Ltd (ASX: PEN) shares are rocketing 20%.

Uranium shares are rising after news emerged the Biden administration in the United States is seeking support from Congress on a $4.3 billion uranium plan. The idea is to buy enriched uranium from US producers to reduce the reliance on Russian imports, Bloomberg reports. The publication noted the US only has one commercial enrichment facility in New Mexico.

ASX listed Peninsula Energy has uranium operations in the United States, while Paladin has a project in nearby Canada.

US uranium producer Energy Fuels Inc (NYSE: UUUU) shares also rocketed nearly 12% on the New York Stock Exchange overnight.

Oil and gas producers are also having a positive day on the ASX today. Santos Ltd (ASX: STO) shares have jumped 3.48%, Woodside Energy Group Ltd (ASX: WDS) shares are leaping 5%, while Beach Energy Ltd (ASX: BPT) shares are up 1.77%.

Goldman Sachs is forecasting Brent crude oil prices will average $140 per barrel between July and September, CNN Business reported.

Benchmark crude oil leapt 1.3% overnight due to tight supplies, as my Foolish colleague James reported this morning.

Oil prices have since retreated slightly, with Brent crude now up 0.21% to US$120.82 per barrel.

Natural gas prices have also jumped 0.74% to US$9.36 MMBtu (metric million British thermal unit).

Share price snapshot

The ASX 200 energy index share price has jumped 29.9% in the past year, while it has leapt 40.7% in the year to date.

For perspective, the benchmark ASX 200 has shed more than 2% in a year.

The post Why are ASX 200 energy shares jumping today? 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.

ASX uranium shares are soaring today amid a positive outlook for the uranium price.

Among ASX uranium shares surging today are Peninsula Energy Ltd (ASX: PEN) and Bannerman Energy Ltd (ASX: BMN). Close on their tails are Deep Yellow Limited (ASX: DYL), Boss Energy Ltd (ASX: BOE) and Paladin Energy Ltd (ASX: PDN).

So why are ASX uranium shares surging?

Uranium price lifts ASX uranium shares

Peninsula shares are surging 14% today, while Bannerman shares are rocketing 16%. Meanwhile, the Deep Yellow share price is rising 9%, Boss Energy is jumping 8%, and Paladin is up 7%, at the time of writing.

ASX uranium shares are lifting amid a rise in the price of the metal. Uranium is used in nuclear power plants.

Bank of America raised the price target of uranium all the way up to 2027, the Australian Financial Review reported.

An analyst at the bank lifted price predictions by 13.5% to US$60.70 a pound in 2022. Meanwhile, the price could hit US$66.90 a pound in 2023, a 38% increase. In 2027, the analyst tips the price to be US$50.

The Ukraine and Russia war is not disrupting shipments but sparking future concerns, the analyst noted. Bank of America analyst Lawson Winder commented on the uranium outlook:

To the best of our understanding, the war has not yet contributed to a direct disruption of shipments of Russia uranium products to the rest of the world.

Rather, the price increase has been driven by concern about future disruption and a desire by market participants to lock in supplies in anticipation of that possibility.

Uranium futures jumped 0.32% to US$63.70 pounds in global markets overnight. This was the highest level since the Fukushima disaster of 2011, Trading Economics reported. The uranium price has surged nearly 112% in a year. In recent days, news out of the United Kingdom may have lifted the price of uranium. The UK is planning to build eight new nuclear reactors by 2030.

The post Why have ASX uranium shares bolted out of the gate today? appeared first on The Motley Fool Australia.

ASX uranium shares are launching higher in Friday's session following a similar surge in the energy commodity's price overnight.

The S&P/ASX Energy Index (ASX: XEJ) is Friday's best performing sector. That's likely also helping push the share prices of ASX uranium producers higher.  

Let's take a closer look at what's going on with the energy commodity producers on Friday.

ASX uranium shares take off on Friday

ASX uranium shares are in the green today amid reports the commodity's price has hit a new multi-year high.

At the time of writing, the Paladin Energy Ltd (ASX: PDN) share price is leading the S&P/ASX 200 Index (ASX: XJO), gaining 10.62%.

Meanwhile, the share prices of Deep Yellow Limited (ASX: DYL), Boss Energy Ltd (ASX: BOE), Peninsula Energy Ltd (ASX: PEN), and Bannerman Energy Ltd (ASX: BMN) are all taking off.

They've gained 9.7%, 9.4%, 14.89%, and 15.74% respectively.

For context, the ASX 200 is currently up 0.5%, as is the All Ordinaries Index (ASX: XAO). The ASX energy sector is also recording a 1.1% gain right now.

The Boss Energy share price is likely also rising on news of the early completion of the company's share purchase plan.

The capital raise – which aimed to raise up to $5 million by issuing new shares for $2.15 apiece – received applications totalling $17.6 million. As a result, the company has scaled back the offer.

What's going on with uranium prices?

ASX uranium shares are gaining amid news the price of uranium reached its highest point in more than a decade overnight.

Uranium futures reached US$61.60 per pound in Thursday's session overseas, according to data from Trading Economics.

It comes as the United States Congress passed legislation to remove Russia's preferential trade status and to ban Russian oil and gas imports, according to reporting by the New York Times.

It's yet another move to financially punish the former-soviet nation for its invasion of Ukraine.

While the legislation still needs the approval of US President Joe Biden, the publication said it was expected to be instigated.

The United States relies on nuclear energy for a significant chunk of its electricity. It also imports much of its uranium from Russia and its allies.

Thus, a potentially changed trade relationship – and resulting tariffs – could impact the supply of the nuclear fuel, boosting its value.

Additionally, the United Kingdom recently announced it's planning to build up to eight nuclear reactors as part of its energy security strategy.

The plan will help the nation phase out its use of Russian oil and coal this year. It's also aiming to ditch Russian gas as soon as possible.

The post Why are ASX uranium shares having such a stellar end to the week? appeared first on The Motley Fool Australia.

A message from our CIO, Scott Phillips:

"G'day Fools. If you're like us, you're dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So we'll do our best to continue to serve you, while also hoping for a swift and peaceful end to war in Ukraine."

———— 

The S&P/ASX 200 Index (ASX: XJO) is suffering a red session on Friday amid an intensification of the situation in Ukraine. However, ASX uranium shares are showing up as some of the hardest-hit companies of all on the Australian share market.

At present, many uranium producers and explorers are trading 10% to 20% lower. This follows reports that one of Ukraine's nuclear power stations — the largest in Europe — is on fire as a consequence of Russian attacks.

The shocking shelling of the Zaporizhzhia nuclear power plant (NPP) marks eight days since the beginning of Russia's invasion of Ukraine.

What is going on with ASX uranium shares today?

It was only a few short months ago when we were reminiscing on the outstanding performances across ASX uranium shares in 2021.

At that time, uranium was beginning to step back into the spotlight as an answer to our climate changes woes. Though, with years of unattractive prices for the commodity, investments in creating new a new supply had been dampened.

However, with expectations of nuclear energy becoming a piece in the green transition puzzle, investors were willing to take a punt on ASX uranium shares.

That was until the latest development in the Ukraine-Russia conflict. Unfortunately, with fears of the Zaporizhzhia NPP evolving into another Chernobyl-like disaster, it seems people have been reminded of what soured nuclear energy's momentum all those years ago.

While the power plant boasts better safety infrastructure than Chernobyl, the consequences of a fault could also be larger. According to Ukrainian foreign minister Dmytro Kuleba, "If it blows up, it will be 10 times larger than Chernobyl.", he said in a Tweet calling for a ceasefire.

Companies copping the brunt of bad news

Currently, ASX uranium shares are being sold off hard. Here's how some of these companies are tracking:

• Boss Energy Ltd (ASX: BOE) down 13.7%
• Paladin Energy Ltd (ASX: PDN) down 12.2%
• Deep Yellow Limited (ASX: DYL) down 14.9%
• Peninsula Energy Ltd (ASX: PEN) down 14%

Finally, the situation in Zaporizhzhia NPP is still evolving as more information transpires. The latest updates suggest firefighters have been unable to combat the fire due to the ongoing conflict.

The post ASX uranium shares plummet amid Ukraine power station attack appeared first on The Motley Fool Australia.

Without a doubt, 2021 has been a triumphant year for ASX-listed uranium shares. To illustrate, many companies with exposure to the silvery-grey metal have surged 100% or more in value this year.

The heightened concerns of climate change have nudged governments to take their emission targets more seriously. In turn, countries are beginning to see nuclear energy as a key piece in the net-zero carbon emissions puzzle.

At the same time, uranium supply has been uncertain following years of low prices. This has made many operations uneconomical in the past. However, as the supply and demand dynamics have come into effect, the price of uranium has rallied in response to higher demand.

While it can be useful to understand the past, investors of ASX uranium shares are likely now looking at what next year could bring for their investments.

Mixed outlook for ASX uranium shares

Unfortunately, no one has a crystal ball informing them of a certain future. As such, experts and market commentators have mixed thoughts on what 2022 could bring for the uranium price — which is inextricably linked to the performance of ASX uranium shares.

In a recent interview, Standard Uranium president and CEO, Jon Bey shared a bullish outlook for uranium in the year ahead. Despite pulling back from its new nine-year high, set in September, Bey believes uranium could be in for a multi-year price increase.

There's demand coming from all over the world. China has just announced 150 nuclear reactors to be built in the next 15 years. And that's only one region. The U.S. has 95 nuclear reactors in operation. We now have bi-partisan support from both sides of government wanting nuclear reactors to stay operational longer, which is going to drive more demand.

Jon Bey, Standard Uranium

Meanwhile, commodity strategists at Morgan Stanley are taking the opposite stance. Although they share the belief there's further potential upside in the uranium price, the strategists are unconvinced the rally can be sustained in 2022. This paints a less positive outlook for ASX-listed uranium shares.

Furthermore, the team believes the underlying supply and demand for uranium remains relatively unchanged in the last few months. Morgan Stanley's analysts hold a price forecast of US$49 per pound by 2024. For context, uranium futures are currently trading around US$45.85 per pound.

Hard act to follow

It certainly will be challenging for ASX-listed uranium shares to continue to deliver the magnitude of returns they did in 2021. As a quick recap, here are some of the more astonishing performances from uranium companies so far this year:

• Paladin Energy Ltd (ASX: PDN) up 217% year-to-date (YTD)
• Bannerman Energy Ltd (ASX: BMN) up 220% YTD
• Lotus Resources Ltd (ASX: LOT) up 161% YTD
• Deep Yellow Limited (ASX: DYL) up 92% YTD, and
• Peninsula Energy Ltd (ASX: PEN) up 79% YTD

Investors of any of the above companies have enjoyed staggering returns. However, the new year will undoubtedly come with its own set of surprises. Ultimately, the price-performance will likely be dictated by supply and demand next year.

The post Here's what the year ahead might look like for ASX uranium shares appeared first on The Motley Fool Australia.

Shares in uranium mining company Peninsula Energy Ltd (ASX: PEN) are climbing in afternoon trade and are currently 4.9% higher at 26 cents each.

Peninsula Energy shares are on the move after the company released its quarterly activities and earnings report.

We pull apart the central points of Peninsula's performance for the period ending 30 September 2021.

Peninsula Energy share price up as uranium market value lifts

The company outlined several investment highlights for the quarter, including:

• Available cash of US$7.4 million at 30 September 2021
• Sale of 200,000 pounds of U3O8 at US$50.35 per pound, up from US$49.57 quarter on quarter
• Generated a net cash margin of US$3.5 million in October 2021, in line with previous quarter
• 310,000 pounds of uranium in converter accounts at 30 September 2021
• Market value of uranium in converter accounts US$13.1 million (US$42.20 per pound U3O8), a 32% increase from the quarter prior.

What happened this quarter for Peninsula Energy?

Peninsula took steps to address inefficiencies following variability in the well production results at the Lance Project in Wyoming.

It first prepared a hydrogeologic model to "simulate solution flow paths" and capture where the inefficiencies were occurring. It installed two additional wells within "potentially unaddressed zones of the pattern area" at the site.

There was a positive outcome as the "two new injection wells drove the composite recovery grade higher soon after activation". Peninsula also evaluated "additional pattern configurations with shorter expected overall response times".

Separately, Peninsula sold 200,000 pounds of uranium under long-term contracts. The realised average cash price was US$50.35 per pound, up from US$49.67 in the previous three months.

The release notes that deliveries were completed using uranium purchased in the market. This generated a net cash margin of $3.5 million which is equal to the past quarter.

By the end of the quarter, Peninsula had "uranium concentrate sale agreements with major utilities for up to 5.05 million pounds of uranium".

These agreements stipulate an average price of US$51-$53 per pound. There is a firm commitment to 3.7 million pounds, with an optional extra 1.35 million pounds available to customers.

What's next for Peninsula Energy?

Based on its secured long-term uranium sale agreements, Peninsula forecasts a secured net cash margin of US$7 million to US$8 million for the remainder of CY21.

Uranium sales are expected to generate a net cash margin of US$8 million to US$9 million in CY22. This is a 12-14% bump.

The forecast net cash margin is based on the difference between the fixed purchase price and the likely sales price.

Coming into December this year, Peninsula has "scheduled open committed sales of 50,000 pounds of uranium pursuant to long-term contracts". It intends to source this from its existing portfolio of binding purchase agreements.

Peninsula Energy share price snapshot

The Peninsula Energy share price has soared by 114% this year to date. This extends its 12-month returns to 328%.

Peninsula's gains are far greater than those of the S&P/ASX 200 index (ASX: XJO), which is up 24% in 12 months.

The post Why the Peninsula Energy (ASX:PEN) share price is lifting 4% today appeared first on The Motley Fool Australia.

The Peninsula Energy Ltd (ASX: PEN) share price had a strong Tuesday, further adding to its weekly gain.

At market close, the energy producer's shares are up 5.46% to 29 cents apiece. This means that over the past week, its shares have now zipped more than 25% higher.

What's driving Peninsula shares higher?

Investors have been buying up Peninsula shares along with its peers, as the uranium sector is up. A strong uptick in oil and gas prices has led nuclear energy to be a possible solution as a secure, emission-free power source.

France, which uses 70% of its electricity from nuclear energy, recently announced plans to build small nuclear reactors by 2030. The government sees nuclear power as a key to reducing global carbon emissions and be used for export to neighbours.

In addition, Japan is seeking to restart its nuclear power plants to achieve its net-zero goal of eliminating greenhouse gases. During this year, the country rebooted the first nuclear reactor since the Fukushima disaster.

In September, the International Atomic Energy Agency upgraded its projection for nuclear energy. The organisation now expects global nuclear-generating capacity to double by 2050.

As a result, the spot price for uranium has soared through the roof to reach US$48.10 a pound this month. This brings it in striking distance to break its 9-year high of US$50.80 achieved last month.

Peninsula owns the Lance Uranium Projects in Wyoming, in the United States. The company is currently transitioning its production method from alkaline to an industry-leading low pH in-situ recovery process.

This comes as the United States Government has ramped up efforts in restoring its competitive advantage in nuclear energy.

Under the American Nuclear Infrastructure Act (ANIA), the US Department of Energy will be restricted to only buy uranium recovered from facilities licensed by the Nuclear Regulatory Commission. This in turn not only strengthens the domestic uranium market but also preserves the US' nuclear fuel supply chain.

While only a handful of companies will be able to supply material into the uranium reserve, Peninsula's wholly-owned US subsidiary, Strata Energy is one of them.

Peninsula share price snapshot

It's been an outstanding 12 months for Peninsula investors, with its shares accelerating over 350%. In 2021, the company's share price has been just as impressive, jumping 160% across the period.

On valuation grounds, Peninsula commands a market capitalisation of roughly $296.3 million, with approximately 996 million shares on its books.

The post Why did the Peninsula (ASX:PEN) share price leap 5% on Tuesday? appeared first on The Motley Fool Australia.

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.

The Peninsula Energy Ltd (ASX: PEN) share price is having a bumper day, surging 19.57% to 27.5 cents.

Peninsula Energy owns the Lance Uranium Projects in Wyoming, in the United States. The company is currently transitioning its production method from alkaline to an industry-leading low pH in-situ recovery process.

According to Peninsula Energy, companies that utilise this process populate the lowest quartile of cash costs for global uranium producers.

Peninsula Energy share price jumps on uranium boom

The broader ASX-listed uranium sector is surging on Wednesday following a strong overnight move from international uranium peers.

The largest ASX-listed uranium player, Paladin Energy Ltd (ASX: PDN), is currently up 23.47% to 90.8 cents.

The broad-based buying has trickled all the way down to the speculative end of town. Names such as 92 Energy Ltd (ASX: 92E) and Alligator Energy Ltd (ASX: AGE) are jumping 11% and 18%, respectively.

The strength across the uranium sector was reflected through the strong overnight performance of the Global X Uranium ETF. The Global X ETF jumped 11.92% on the back of its highest ever volume since inception.

In addition, uranium spot prices have rallied by around US$2.75/lb or 7.3% to US$40.5/lb overnight, according to Numerco.

How does this impact Peninsula?

Peninsula Energy made the decision to raise $15 million in May to fund its purchase of 300,000 pounds of uranium at US$31.35 per pound.

Management believed this acquisition of physical uranium was "strategically aligned with the planned preparations for the Company's flagship Lance Project transition to low pH ISR operations."

As well, it was a potential "source of funding for the restart of operations at Lance following a final investment decision."

With uranium prices holding above US$40/lb, this means that Peninsula is sitting on a tidy $2.75 million profit for its physical uranium investment.

Peninsula Energy share price in 2021

The Peninsula Energy share price has boomed in 2021. Peninsula Energy shares are up more than 120% year to date thanks to the resurgence of uranium spot prices.

Peninsula marked a 2.5-year high of 35 cents on 15 September.

The post Why the Peninsula Energy (ASX:PEN) share price is rocketing 20% today 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 Peninsula Energy Ltd (ASX: PEN) share price might have hit a near-term top after rallying to a 3-year high of 35 cents on 17 September.

Shares in the uranium explorer have since tumbled 25% to 25 cents.

Why the Peninsula Energy share price is sliding

Uranium prices ease from 9-year highs

Uranium prices skyrocketed in a short period of time, rallying from around US$30/lb in mid-August to above US$50/lb by late September.

During this time, the Peninsula Energy share price surged 180% from 12 cents to 35 cents.

Back in late May, the company initiated a $15 million capital raising to settle its purchase of 300,000 pounds of uranium at a price of US$31.35/lb.

The company believed that acquiring uranium inventory "during a period when there is a focused and continued drive by the United States Government to support and revitalise the domestic uranium industry, is a low-risk strategy that has the potential to deliver considerable upside value for shareholders."

The recent jump in uranium prices to US$50/lb meant that Peninsula Energy would've been sitting on a hefty US$5.5 million profit from its physical uranium acquisition.

The jump in uranium prices has been driven by a Canadian investment fund, Sprott Asset Management and its Physical Uranium Trust.

The uranium fund has an aggressive strategy to purchase physical uranium off the spot market and store it in secured locations.

The fund was regularly purchasing physical uranium up until 17 September, broadly in-line with when uranium prices plateaued.

Uranium prices have since struggled to hold above US$50/lb, sliding to US$44.3/lb according to Trading Economics.

Broader selloff among ASX-listed uranium players

The Peninsula Energy share price isn't alone in its recent selloff.

The pullback for uranium prices has triggered broad-based selling across all ASX-listed uranium players.

The largest of them all, Paladin Energy Ltd (ASX: PDN) has tumbled 11% in the past week and down 26% from its recent high of $1.12.

Prospective explorers such as Deep Yellow Limited (ASX: DYL) and Boss Energy Ltd (ASX: BOE) have also experienced similar falls.

The post Why the Peninsula Energy (ASX:PEN) share price tumbled 25% from multi-year highs 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.

ASX uranium shares have taken the spotlight after uranium prices skyrocketed more than 60% in the past month to over US$50/lb.

Uranium shares were quick to rerate, many of which have doubled in the past month.

The largest ASX-listed uranium player Paladin Energy Ltd (ASX: PDN) is up 95% in the past month, even after sliding 16% on Monday.

Prospective explorers have also boomed, with names such as Boss Energy Ltd (ASX: BOE), Deep Yellow Limited (ASX: DYL) and Peninsula Energy Ltd (ASX: PEN) up between 70% and 115% since mid-August.

As both ASX uranium shares and the underlying commodity surge in such a short span of time, experts are questioning whether or not this new price rally is sustainable.

Uranium boom "hard to maintain" says Morgan Stanley

Uranium prices are running hot largely thanks to Sprott's Physical Uranium Trust.

The fund has been aggressively buying physical uranium off the spot market, sparking a renewed interest in the energy metal and tightening the market.

ASX uranium shares are looking to capitalise on the recent jump in prices, with Paladin Energy eyeing a restart of its "globally significant" Langer Heinrich project and Boss Energy looking to fast track its Honeywell project.

Last Friday, Sprott's Twitter said that it added more than 10 million pounds of physical uranium since 17 August. Now amassing more than 28 million pounds.

Unfortunately, Morgan Stanley questions whether or not Sprott's uranium shopping spree can continue into 2022.

According to Business Insider, the broker said:

It needs to be seen how long the current rate of investment demand can be maintained, but some bulls argue that we won't see the price dipping if fund buying slows, as improved market liquidity has aided price discovery and revealed the 'true' spot price.

Morgan Stanley flags that commodities such as coal and natural gas prices have rallied due to "actual market tightness" whereas uranium's underlying "supply-demand fundamentals haven't meaningfully changed over the last few months to warrant this price surge."

"Only when these utility inventories are worked off materially, the real need for a higher price to incentivise the return of idled supply will become more pressing, we think" Morgan Stanley added.

What does this mean for ASX uranium shares?

The current run-up in uranium prices doesn't necessarily spell big profits for ASX uranium shares.

In the case of Paladin Energy, the company requires US$81 million of pre-production capital expenditure to restart its uranium operations.

Once things get going, life of mine production cash costs come in at US$27/lb in addition to freight and logistics of US$0.95/lb and sustaining capex of US$2.90/lb.

Business Insider said that commodity strategists remain bullish on uranium in the medium-to-long term with a price forecast of US$49/lb by 2024.

If true, this means that the current uranium bull market might need to take a small breather.

The post Are ASX uranium shares fully valued? 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.

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.