Peninsula Energy (ASX:PEN) share price rockets 20% to 2-year high

After being in a prolonged bear market, uranium spot prices have soared in the past month.

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The Peninsula Energy Ltd (ASX: PEN) share price has bolted out of the gates in today’s session.

Shares in the uranium miner have stormed 20.45%, reaching 26.5 cents in late morning trade.  

Let’s take a look at what’s fuelling the Peninsula Energy share price.  

Uranium price spurs on share prices

Peninsula Energy has not released any price-sensitive news to explain today’s bullish price action.

However, shares in the uranium miner have propelled higher thanks to a single catalyst.

After being in a prolonged bear market, uranium spot prices have soared in the past month.

According to Cameco, uranium prices have soared to 6-year highs.

Strength in the underlying commodity has helped fuel the Peninsula Energy share price today and in the past few weeks.

The major catalyst behind the soaring uranium spot price has been the aggressive buying of the world’s largest uranium fund, Sprott Physical Uranium Trust.

More on Peninsula Energy

Apart from the soaring uranium price, Peninsula Energy has also provided updates on its flagship Lance Uranium Projects in Wyoming, USA.

The company has continued MU1A low-pH field demonstrations at the project for more than a year.

Peninsula Energy has noted that field operations continue to run consistently with target flow and solution chemistry achieved.

In addition, the company purchased 300,000 pounds of uranium at a price of US$31.35 per pound following a $15 million capital raise earlier this year.

Snapshot of the Peninsula share price

Peninsula Energy’s 100% owned Lance Projects is the only US-based uranium project using a low pH, in-situ recovery (ISR).

To ‘decarbonise’ the country’s power sector, the US Department of Energy has allocated US$75 million towards the establishment of a national strategic uranium reserve.

As a result, Peninsula Energy is in a position to potentially benefit from various initiatives of the US government.

Peninsula Energy currently has a number of long-term sales contracts in place, extending to 2030.

The Peninsula Energy share price bolted out of the blocks in 2021, hitting 18 cents in mid-February.

Since then, the company’s share price has struggled to gain traction until recently.

Since the start of September, the Peninsula Energy share price has soared more than 60%.

At the time of writing, shares in Peninsula Energy are trading at 26.5 cents, a price that hasn’t been seen since July 2019.

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Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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