The 92 Energy Ltd (ASX: 92E) share price boomed in September thanks to the recent hype around uranium spot prices.
92 Energy listed on the ASX on 15 April after successfully raising $7 million at 20 cents per share.
The company said it is the first pure-play uranium company to list on the ASX in more than a decade after uranium prices plunged from 2007 peaks of US$136/lb to around US$30/lb in 2020.
What’s driving the 92 Energy share price?
The 92 Energy share price joins the long list of booming ASX uranium shares, most of which are rallying to multi-year highs.
This is largely thanks to skyrocketing uranium spot prices, which have jumped to 9-year highs of US$48/lb on Wednesday, according to S&P Global Platts.
It was just a month ago that uranium prices were fetching just ~US$30/lb.
The sudden jump in uranium prices has pumped life back into ASX uranium shares across the board.
The largest ASX-listed uranium player, Paladin Energy Ltd (ASX: PDN) has rallied 126% in the last month to a fresh 9-year high.
What’s so special about this uranium company?
The 92 Energy share price has returned faithful IPO investors more than 400% in just 5-months.
The company is exploring for high-grade, unconformity-type uranium in the Athabasca Basin, Canada.
This region is known for having some of the highest grade and lowest cost uranium deposits in the world, according to 92 Energy.
92 Energy owns a number of early stage uranium projects all of which are located in the Athabasca Basin. Here’s an overview of the company’s projects:
- Gemini Project, covering 264.5 km2 on the eastern margin of the Athabasca Basin
- Tower Project, an underexplored and untested prospect also running along the eastern margin
- Clover Project, located within close proximity of major uranium mines including McArthur and Cigar Lake
92 Energy investors can expect a steady stream of updates from the company as it executes its exploration strategy.
According to the company prospectus, it expects to spend approximately 2.2 million over the next year to drive its Gemini, Clover and Tower projects.