These 2 ASX uranium shares just smashed multi-year highs!

Investors just sent the ASX uranium shares soaring to new multi-year highs.

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Two leading ASX uranium shares are having a day to remember on Monday, both notching fresh multi-year highs.

In afternoon trade today, the Bannerman Energy Ltd (ASX: BMN) share price is up 2.0% to $4.44.

If the stock manages to close at this level, this will mark a new all-time high for the ASX uranium share, which has now soared a whopping 216% since this time last year.

The Paladin Energy Ltd (ASX: PDN) share price has also been on a tear. Shares in the S&P/ASX 200 Index (ASX: XJO) uranium miner are up 1.0% at the time of writing, swapping hands for $15.65 apiece.

That marks a new multi-year high for this ASX uranium share. And it sees the Paladin share price up 60% so far in 2024 and up 138% over 12 months.

Now, some price charts are still having trouble with Paladin's 10-1 reverse split, which occurred on 11 April. This may make it appear that Paladin Energy shares have gained even more than they have, as shares on the day were revalued from $1.52 to $15.20 amid the reduction in shares.

What's sending the ASX uranium shares to new highs

Bannerman and Paladin have both been enjoying a range of headwinds that have helped boost many ASX uranium shares.

Chief among those is the strong global uranium demand driving prices higher amid limited new supplies.

In 2023 the uranium price averaged around US$67 per pound. Yellow cake hit all-time highs of US$107 per pound in late January. While prices have retraced from those highs, uranium is still fetching more than US$90 per pound today.

This comes amid surging global interest in nuclear energy as a reliable, emissions-free baseload power source.

Currently, there are at least 58 new nuclear power plants under construction across 16 countries.

China leads the pack, developing 22 nuclear power plants, with India, the world's most populous country, also constructing new nuclear power stations.

And the two nations aren't alone.

ASX uranium shares got a big boost in December when 22 nations – including the United States, Japan and France – pledged to triple their nuclear power capacity by 2050.

And with the US government mulling a ban on imports of enriched Russian uranium, the medium-term outlook for the sector remains strong.

Last week saw Citi lift its 12-month price target for Paladin shares by 17% to $17.00 a share.

That represents a potential upside of almost 9% for this ASX 200 uranium share from current levels.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bernd Struben 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.

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