ASX All Ords uranium stock rockets 12% on big US news

Investors are piling into the ASX uranium producer on Tuesday. But why?

The All Ordinaries Index (ASX: XAO) is up 0.32% today, with one ASX All Ords uranium stock doing plenty of the heavy lifting.

Shares in United States-focused uranium producer Peninsula Energy Ltd (ASX: PEN) closed yesterday trading for $1.29. In earlier trade today, shares were changing hands for $1.44 apiece, up 11.6%. After some likely profit-taking, shares are currently trading for $1.375 each, up 6.59%.

As you can see on the chart above, the ASX All Ords uranium stock still has a lot of ground to make up after a horror year in 2024. But over the past month, things have taken a strong turn for the better.

Here's what's stoking investor interest today.

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ASX All Ords uranium stock soars on promising update

The Peninsula Energy share price is leaping higher after the company released a promising update on its Lance Projects, located in the US state of Wyoming.

The company restarted uranium in situ recovery (ISR) operations at Lance on 18 December 2024. Management said the Lance Project "operated smoothly and efficiently over the end of year holiday period".

Around 1,100 pounds of uranium were captured in the plant ion exchange system and have been held as in-process inventory between the start date and the end of 2024.

The miner noted that its current priorities are to continue ramping up the wellfield preconditioning and production operational flowrates to increase the rate of uranium recovery.

Also likely spurring investor interest in the ASX All Ords uranium stock, construction of Peninsula's Phase II central processing plant resin elution and uranium precipitation circuits are expected to be completed this month.

Management said:

The first of two yellowcake dryer units has been delivered to the project site and construction crews are preparing to install the dryer for operations later in the quarter. No dry yellowcake has been produced yet, with Peninsula targeting production of the first dry yellowcake product in March.

Offering another potential tailwind, Peninsula reported that the State of Wyoming Department of Environmental Quality, Land Quality Division has issued an approved Permit to Mine amendment to expand Peninsula's authorised mine permit area at Lance.

As for the balance sheet, the ASX All Ords stock had an unaudited cash balance of US$45 million as at 31 December.

Management said the "healthy balance sheet" positions Peninsula well to finalise the construction and commissioning of its Phase II plant expansion and ramp-up production from Mine Unit 3.

Mine Unit 3 is the first mine unit to be solely mined using Peninsula's low pH leaching method.

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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