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.