This ASX uranium share has rocketed 157% in a month. What's the deal?

Why is this ASX uranium share on fire lately?

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Key points

  • This ASX uranium share has surged 157% in a month 
  • The company's listings on the London and Spanish stock exchanges have also soared  
  • Rising uranium prices may be impacting this ASX share 

The Berkeley Energia Ltd (ASX: BKY) share price has exploded in the past month to its highest price since July 2021.

The company's shares have skyrocketed nearly 157% since the market close on 24 February. The shares were swapping hands at 56 cents, up 21.74% at the close of trading today.

Let's take a look at what has been going on with this ASX uranium miner.

This ASX uranium share is surging

The Berkeley share price has soared amid rising uranium prices. Trading economics data reveals the uranium price has surged 34% in a month and 97% in a year. Uranium futures hit more than US$59 a pound amid concerns over Russian supplies.

Berkeley has also explained possible reasons for the share price gains. On 17 March, the company responded to a price and volume query from the ASX.

The company said it noted recent rises in the trading of its shares on the Spanish Stock Exchange. Berkeley explained Russia's invasion of Ukraine had led to high energy and uranium prices in Europe. Berkeley added:

There have been news articles in the Spanish and European press referring to nuclear power being assessed as a viable alternative to decrease Europe's dependence on Russian energy.

This has already seen the French government order its state energy company, EDF, to establish new reactors as part of plan to strengthen France's energy security and to sell more nuclear power into the European energy market, and other European governments commence reviews of their existing energy policies.

This has led to the significant strengthening of the uranium spot price.

Berkeley shares have surged nearly 186% since 24 February on the Spanish Stock Exchange. On the London Stock Exchange, the company's listing has soared nearly 175%.

In H1 FY22 results on 15 March, the explorer reported a net profit of more than $3 million.

This compared to a $32.6 million loss in the prior corresponding period. The outlook for nuclear power improved during the half. Berkeley noted China is planning at least 150 new nuclear reactors in the next 15 years.

The company also noted a US congress infrastructure bill including US$6 billion for existing zero-carbon nuclear facilities. France is also planning to build more nuclear reactors, Berkeley reported.

Berkeley share price snapshot

The Berkeley share price has fallen 10% in the past 12 months, while it is up 146% this year to date.

In the past month, Berkeley shares have soared 163%, including a 69% rise in just the past week.

Berkeley has a market capitalisation of about $252 million based on the current share price.

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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