The share market's three biggest ASX uranium stocks are among the fastest risers on Tuesday following a dramatic surge yesterday.
The Deep Yellow Ltd (ASX: DYL) share price soared 21.24% yesterday to close at $1.57.
Today, Deep Yellow shares are up 4.14% to $1.64 apiece and hit a 52-week high of $1.67 earlier.
The Boss Energy Ltd (ASX: BOE) share price rocketed 17.66% to close at $4.33 yesterday.
On Tuesday, Boss Energy shares are up 3.58% to $4.49 apiece and hit a 52-week high of $4.56 earlier.
The Paladin Energy Ltd (ASX: PDN) share price rose 15.56% to close at $7.28 yesterday.
On Tuesday, the market's largest ASX 200 uranium stock is up 3.16% to $7.51.
In earlier trading, Paladin shares reached an intraday high of $7.76, up 6.6%.
Meantime, the S&P/ASX 200 Index (ASX: XJO) is up 0.11% to 8,557.8 points.
The three ASX uranium stocks are currently among the seven fastest risers of the day.
Image source: Getty Images
What's driving ASX uranium stocks higher this week?
The uranium commodity price leapt 9.25% to a six-month high of US$76.20 per pound yesterday.
The uranium price spike followed news that Canadian investment fund Sprott will acquire US$100 million in physical uranium.
Sprott is a global asset manager focused on precious metals and critical materials investments.
The investment fund manager announced that its Sprott Physical Uranium Trust had entered into an agreement with Canaccord Genuity Corp to buy 5,800,000 units of the trust for US$17.25 apiece, representing total gross proceeds of US$100,050,000.
Sprott said it would use the net proceeds to buy physical uranium in the form of uranium oxide in concentrates and uranium hexaflouride.
The purchase comes amid the US moving to expedite nuclear power adoption for domestic purposes.
Last year, the US allocated up to $2.7 billion in funding to support uranium supply and enrichment capacity.
Last month, US President Trump signed four executive orders aimed at reinvigorating America's nuclear energy industry.
The orders included accelerating licensing approvals for nuclear reactors that had been tested for safety with the Departments of Energy or Defence.
In a statement, the Department of Energy explained:
The orders lay out a plan to modernize nuclear regulation, streamline nuclear reactor testing, deploy nuclear reactors for national security, and reinvigorate the nuclear industrial base.
Trading Economics analysts said the orders would likely bring forward the adoption of nuclear power, thereby lifting demand for uranium.
The analysts said:
The move signaled that the new administration was supportive of the sector and paved the way for tech companies to use nuclear power to sustain power-hungry data centers.
In turn, lack of clarity on future levies on uranium imports from Canada and Kazakhstan maintained the stress on the limited domestic capacity.
