Why did the Paladin Energy share price tumble 13% on Monday?

This uranium share lost its steam on Monday as the crisis calms.

| More on:
Red arrow going down and symbolising a falling share price.

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 Paladin Energy Ltd (ASX: PDN) share price broke to its lowest level since August 2021 on Monday.

At the closing bell, shares in the uranium producer finished at 57 cents apiece, cascading 13% from their previous close. In turn, the Langer Heinrich mine owner has etched a path to the downside to the magnitude of 40% since the start of the year.

Yet, the astute investor would have noticed there wasn’t any news out from Paladin Energy today. So, what could have drained the mining company of its enthusiasm today?

Paladin Energy share price tailwinds settle

Over the last few weeks, uranium has come into the spotlight as Australia faced off against its own energy crisis. The collapse of gas retailers and the U-turning of customers by some electricity retailers were the indicators of a failing energy market.

During this time, the old debate over whether Australia should consider nuclear energy as an alternative energy source reignited. Around the same time, the Biden administration advocated for lawmakers to follow through with a US$4.3 billion plan to do away with its uranium imports from Russia.

Ultimately, ASX-listed uranium shares picked up steam as the market began to bake in the chances of developed countries turning to an Australian supply of energy-rich uranium. However, today, those chances appear to have evaporated somewhat.

In an address today, Energy Minister Chris Bowen hinted that the worst of the situation is behind us, stating:

This is the system working. We have some way to go on; there’s no complacency. We’re very alive to the risks that remain in the system. […] we stood at a situation where load shedding was indeed looking likely, that blackouts were possible and we’ve managed to avoid all the above and there has been no impact on the reliability for consumers […]

As such, the Paladin Energy share price was not the only uranium share to be tempered today. Other names in the space, including Boss Energy Ltd (ASX: BOE) and Deep Yellow Limited (ASX: DYL) both fell more than 7%.

Motley Fool contributor Mitchell Lawler 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 Scott Phillips.

More on Energy Shares

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 »

A happy woman smiles as she looks at a tablet in a room with green plant life around her.
Energy Shares

AGL share price down amid Fortescue Future Industries hydrogen hub news

Hydrogen news is making headlines for AGL.

Read more »

Santos share price worker in front of oil mine puts thumbs up
Energy Shares

Why is the Woodside share price having such a strong start to the week?

The Woodside share price is rebounding alongside oil prices.

Read more »

A happy woman flies with arms outstretched on her boyfriend's back on the beach at dusk.
Energy Shares

Beach Energy share price climbs on BP deal

Beach Energy shares are defying the broader market sell off on the ASX today.

Read more »

A man looks frustrated with head on hand as he fills up car at service station.
Energy Shares

Sick of high petrol prices? Then buy this ASX share: analyst

Is it painful paying $2-something at the fuel bowser? Stock investors can get some of that money back by doing…

Read more »