It has been another great day to have some ASX uranium shares in your portfolio.
The market may be falling again today, but that hasn't stopped this side of the market from hurtling higher.
Which ASX uranium shares are rising?
Let's take a look at the state of play in the uranium industry today:
- The Alligator Energy Ltd(ASX: AGE) share price is up 6% to 5.4 cents.
- The Bannerman Energy Ltd(ASX: BMN) share price is up 9% to $2.70.
- The Boss Energy Ltd(ASX: BOE) share price is up 4.5% to $4.71.
- The Deep Yellow Limited(ASX: DYL) share price is up 7% to $1.14.
- The Paladin Energy Ltd(ASX: PDN) share price is up 3% to $1.02.
Why are they powering higher?
Investors have been scrambling to buy ASX uranium shares today after the price of the chemical element rose to its highest level in a decade.
According to CommSec, uranium futures ended the week at US$65.50 a pound, which is a level not seen since the 2011 Fukushima disaster.
The even better news for uranium miners and developers is that prices are expected to climb upwards of US$75 to US$80 a pound by the end of December and then continue rising for at least another decade.
That's the view of SP Angel mining analyst John Meyer, who told Reuters:
The market has been slowly building higher prices as mining costs rise and nuclear generators look to build stocks to guard against increasingly risky supply-side issues. We see prices rising year-on-year for next 10-20 years or till the world finds another source for large scale un-interruptible base load power with a low carbon footprint.
One local politician who believes nuclear is the way forward is the Leader of the Opposition, Peter Dutton. According to his website, when asked if nuclear power is an alternative to the expensive cost of energy, Dutton responded:
I just think if you look at a region like Ontario, they have 60 per cent of nuclear power there – the new age, nuclear power. It firms up renewables and they're paying half the electricity bills that Victorians are, or that Australians are. If Canada can do it, if France can do it, if the United States can do it, if the United Kingdom and elsewhere can do it, why can't Australia? I don't understand Mr Bowen's obsession against nuclear, when Bill Gates and others are fully in favour of it, and its zero emissions.
All in all, the outlook for ASX uranium shares is glowing brighter than a nuclear reactor.