ASX uranium stocks are enjoying an incredible week of share price growth amid news that Canadian investment fund Sprott will buy $200 million of physical uranium, double the original investment announced earlier this week.
Sprott's purchase, along with regulatory changes in the US to bring more nuclear reactors online, sparked the rally in ASX uranium stocks this week.
Since Monday, Boss Energy Ltd (ASX: BOE) shares have soared 26.1% to $4.63 apiece at the time of writing.
Boss Energy shares gathered further momentum yesterday when the company announced it had met its first-year production guidance.
Earlier today, the Boss Energy share price hit a 52-week high of $4.75. The stock has since lost steam and is down 0.64% now.
Similarly, the Deep Yellow Ltd (ASX: DYL) share price has rocketed 31.3% this week to $1.70 currently.
Deep Yellow shares also reached a 52-week high of $1.76 in morning trade. They have since reversed course into the red, down 1.45%.
The Paladin Energy Ltd (ASX: PDN) share price is up 17.8% this week to $7.42 at the time of writing.
The market's largest ASX 200 uranium stock hit a four-month high of $7.56 this morning but has since slipped 2.05%.
Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is up 0.014%.
What's put a rocket under ASX uranium stocks this week?
ASX uranium stocks initially lifted on news that the Sprott Physical Uranium Trust would buy $100 million of uranium.
The plan was to fund this purchase via a capital raise with underwriter Canaccord Genuity Corp.
According to Newswire, strong investor demand has prompted Sprott to expand the capital raise and double its purchase to $200 million.
Now, Canaccord will buy 11,600,000 units of the uranium trust, up from 5,800,000, for US$17.25 apiece.
The total gross proceeds will be US$200,100,000. Canaccord plans to close the offer tomorrow.
The uranium price leapt 9.25% to a six-month high of US$76.20 per pound earlier in the week.
Trading Economics analysts said uranium acquisitions by Sprott commonly trigger rallies in the uranium price.
This is due to how thin uranium derivatives trade.
Sprott is a global asset manager focused on precious metals and critical materials investments.
The purchase comes amid the US moving to grow domestic nuclear power.
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 the local nuclear energy industry.
Trading Economics analysts say global uranium demand has also been supported by power-hungry AI data centres.
This is why news that Amazon will invest an extra $20 billion in Australian AI centres also buoyed ASX uranium stocks this week.
Meanwhile, the world's largest uranium producer, Kazakhstan's NAC Kazatomprom JSC, has advised it will achieve a mid-point production of 14 million pounds in 2025.
Trading Economics analysts said this is nearly 20% below the production guidance Kazatomprom provided in late 2023.
Lower-than-expected production from global producers of any commodity tends to strengthen commodity prices because it limits supply.
