Why are ASX uranium shares having such a cracker run on Wednesday?

We take a look at why uranium shares are soaring today.

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ASX uranium shares represented by yellow barrels of uranium

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Key points

  • ASX uranium shares are having a stellar day on the market 
  • One ASX uranium share with US operations soared 20% 
  • The Biden administration is reportedly seeking support on a $4.3 billion plan to buy uranium from producers 

ASX uranium shares are surging today following in the footsteps of US markets overnight.

Shares soaring include Paladin Energy Ltd (ASX: PDN), Bannerman Energy Ltd (ASX: BMN), Peninsula Energy Ltd (ASX: PEN) and Boss Energy Ltd (ASX: BOE).

So let’s take a look at why ASX uranium shares are storming ahead?

ASX uranium shares soar

Peninsula shares are rocketing 20%, Paladin shares are soaring nearly 13%, Bannerman Energy shares are jumping 13%, while Boss Energy shares are 11% ahead.

Uranium shares are following a similar trend to global markets overnight. The Global X Uranium Exchange Traded Fund jumped 5.98% in US markets. US uranium producer Energy Fuels Inc (NYSE: UUUU) leapt 12.94% while Canadian headquartered Uranium giant Cameco Corp (NYSE: CCJ) leapt 8%.

Investors appear to be buying up uranium shares following some positive news out of the United States.

The Biden administration is seeking Congress support for a $4.3 billion plan to buy enriched uranium from domestic producers, Bloomberg reported. A source told the publication the aim is to halt reliance on Russian imports of the nuclear fuel.

ASX listed Peninsula owns the Lance Uranium Project in the state of Wyoming, in the United States. Paladin Energy is working on the Michelin project, nearby in Canada.

In news closer to home, Opposition leader Peter Dutton has reignited the nuclear energy debate, saying he is “not afraid to have a discussion on nuclear”. Uranium is used as the fuel in nuclear power plants. In an interview with ABC Radio National, Dutton added:

If we want to have legitimate emission reductions, if we want to lower electricity prices, then that’s exactly the path that President Macron has embarked on in France, it’s what Prime Minister Johnson is talking about in the United Kingdom…

However, Queensland Energy Minister Mick de Brenni has pushed back on the plan today. He reportedly claimed nuclear energy is “dangerous”, the Canberra Times reported.

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 Scott Phillips.

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