Paladin Energy share price leaps 10% as uranium prices surge

Uranium prices are at their highest levels since 2011.

| More on:
a group of three men in hard hats and high visibility vests stand together at a mine site while one points and the others look on with piles of dirt and mining equipment in the background.

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

Key points

  • The Paladin Energy share price has leapt almost 10% today 
  • The company's share price has soared 123% in one year 
  • Uranium prices are at an 11 year high 

The Paladin Energy Ltd (ASX: PDN) share price closed almost 10% higher today despite no news from the company.

The company’s shares finished the day at 91 cents, a 9.64% gain. For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) closed 0.98% higher today.

Let’s take a look at why this company’s share price had such a stellar day.

Uranium prices

The price of uranium has surged to the highest level since the Fukushima disaster in 2011, Trading Economics reported. The UK government has recently revealed plans to build eight nuclear reactors by 2030.

Paladin is exploring the Langer Heinrich mine in Namibia for uranium. It’s located 40km southeast of the Rossing Uranium mine.

Uranium futures hit US$63.7 a pound in global markets overnight. Over the past year, uranium prices have risen nearly 112%.

Paladin is not the only ASX uranium share to rise today. Peninsula Energy Ltd (ASX: PEN) and Bannerman Energy Ltd (ASX: BMN) gained 10.2% and 16.36% respectively.

Overnight, Bank of America also increased its price target on uranium to US$66.90 a pound in 2023. Bank of America analyst Lawson Winder said:

The price increase has been driven by concern about future disruption and a desire by market participants to lock in supplies in anticipation of that possibility.

Paladin Energy share price snapshot

The Paladin share price has soared 123% in the past year while it is up around 4% year to date.

For perspective, the ASX 200 Energy Index has gained 23% in a year.

In the past month, Paladin shares have climbed 4.6%, surging almost 14% in the past week alone.

Paladin has a market capitalisation of about $2.7 billion 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.

More on Energy Shares

a man sits on a rocket propelled office chair and flies high above a city
Energy Shares

Up 26% in a month, is the Paladin Energy share price on the comeback trail?

Will this rally stick for the ASX uranium share after a tough trading year to date?

Read more »

boy dressed as an eco warrior and holding a globe.
Energy Shares

Origin share price dips amid fresh climate pressure from shareholders

Shareholders are asking the company to put climate sensitivity analysis front and centre.

Read more »

share price ASX mining shares buy coal miner thumbs up
Energy Shares

Why are ASX coal shares having such a stellar end to the week?

It's proving a cracking end to the week for these three ASX 200 coal shares.

Read more »

share price ASX mining shares buy coal miner thumbs up
Record Highs

Why did the Whitehaven Coal share price just hit an 11-year high?

Whitehaven shares have been on fire in 2022.

Read more »

a miner wearing a hard hat smiles as he stands in front of heavy earth moving equipment on a barren mine site.
Energy Shares

Here’s why the Pure Hydrogen share price is soaring 22% today

Shares in the clean energy company are flying high on Wednesday.

Read more »

gas and oil worker on pipeline equipment
Energy Shares

ASX 200 energy shares mixed amid bearish oil price outlook

How did a bleak broker note affect energy shares today?

Read more »

A woman standing on a path flanked by big green trees is surrounded by colourful balloons tumbling from the sky.
Share Gainers

Why did the Pure Hydrogen share price pop 21% today?

Why did Pure Hydrogen shares have such an amazing day today?

Read more »

Two miners stand in front of a large black wall of coal.
Energy Shares

ASX coal shares in the spotlight amid fresh supply warnings

Could this be an opportunity for Australian coal company's.

Read more »