92 Energy (ASX:92E) share price jumps 11%, up 400% since IPO. Here's why.

The newest ASX-listed uranium stock is off to a flying start.

| More on:
rising asx share price represented by happy woman dancing excitedly

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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

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

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

What's driving the 92 Energy share price?

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

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

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

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

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

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

What's so special about this uranium company?

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

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

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

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

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

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

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

Motley Fool contributor Kerry Sun 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.

More on Record Highs

A smiling woman puts fuel into her car at a petrol pump.
Energy Shares

How has this ASX 200 energy stock just hit another new record high?

This energy stock can't stop clocking new highs.

Read more »

ETF spelt out with a rising green arrow.
ETFs

4 top ASX exchange-traded funds smashing record highs on Wednesday

If you own any of these popular ETFs, congratulations!

Read more »

a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.
Record Highs

ASX 200 soars to another new all-time high on Friday!

Exuberant investors just sent the ASX 200 to another new all-time high.

Read more »

A beautiful ocean vista is shown with a woman whose back is to the camera holding her arms up in triumph as she stands at the top of a rock feeling thrilled that ASX 200 shares are reaching multi-year high prices today
Share Market News

The ASX 200 just hit another new record high on Monday

The ASX 200 just breached Friday’s record to set a new all-time high today.

Read more »

A man wearing a red jacket and mountain hiking clothes stands at the top of a mountain peak and looks out over countless mountain ranges.
Technology Shares

The Nasdaq just hit a fresh all-time high. What could it mean for Aussie investors?

With the Nasdaq at fresh highs, ASX tech shares are reaping the benefits.

Read more »

ETF written in gold with dollar signs on coin.
ETFs

4 hot ASX ETFs smashing all-time highs on Thursday

ETFs are on fire this Thursday.

Read more »

Yellow rising arrow on a brick wall with a man on a ladder.
Record Highs

How did the Brickworks share price just hit an all-time high?

This stock is building up investor excitement.

Read more »

rising asx share price represented by drone flying in the air
Technology Shares

How has the DroneShield share price gained 90% in a month?

DroneShield shares are once again at a new record high today.

Read more »