Deep Yellow Limited (ASX: DYL) shares are catching the eye on Friday.
At the time of writing, the uranium developer's shares are up 18% to $1.76.
This latest gain means that its shares are at a 52-week high and up almost 120% over the last 12 months.
What's going on with Deep Yellow shares?
Investors have been buying Deep Yellow and other ASX uranium shares today amid concerns over the supply of the chemical element.
This follows news that the world's largest producer of uranium, Kazatomprom, has warned that its 2025 production plans are likely to be impacted by construction delays and sulphuric acid shortages. The latter is used for extracting the uranium. It said:
If the limited access to sulphuric acid continues throughout the current year and the Company does not succeed in reducing the delay in the construction schedule at the newly developed deposits in 2024, this could unfavourably influence Kazatomprom's production plans for 2025.
Given how demand is already tipped to outstrip supply, this has many believing that uranium prices are going to remain at sky high levels for some time to come.
This will be good news for Deep Yellow and other uranium players.
Is it too late to invest?
Bell Potter is a fan of the company and currently has a buy rating on its shares.
However, its price target of $1.81 is only a fraction ahead of where Deep Yellow shares trade today.
Though, it is worth noting that this recommendation was made before today's Kazatomprom news. So, it is possible that Bell Potter could boost its valuation in the coming days to reflect the development.
Stay tuned for that.
