That's because the team at Bell Potter believes this ASX penny stock could rocket significantly higher over the next 12 months if everything goes to plan.

Which ASX uranium stock?

The stock that Bell Potter is tipping as a speculative buy is Alligator Energy Ltd (ASX: AGE).

It is an exploration and development company with a focus on the Samphire uranium project, which is southeast of Whyalla in South Australia.

Bell Potter notes that the ASX uranium stock conducted a scoping study in 2023 confirming amenability for in-situ-recovery (ISR) mining similar to that utilised by Boss Energy Ltd (ASX: BOE) at Honeymoon. Samphire has a targeted initial project of ~1.2Mlbspa U3O8 production over a 12-year mine life.

Bell Potter recently visited the Samphire uranium project and was pleased with what it saw. It said:

We attended a site visit to the Samphire Uranium project, southeast of Whyalla,which is in the process of conducting a Field Recovery Trial (FRT). The FRT aims to de-risk technical aspects of Samphire and provide data into the upcoming Bankable Feasibility study (BFS). The FRT is being conducted across two wellfields (A & B), with differing grade and permeability characteristics to provide a representative sample of expected operations.

The broker highlights that there is now a pathway to approvals and ultimately production. It adds:

The data collected in the FRT will be utilised in the upcoming BFS (1HCY27), alongside additional drilling being conducted at Samphire, aimed at increasing resource confidence and expanding the Mineral Resource Estimate. AGE obtained a Retention Lease (RL) to conduct the FRT, which laid out a pathway towards an eventual Mining lease (ML) application.

The team believes this process helped to build on community and stakeholder engagement, identify the key environmental risks and commence collection of environmental baseline studies. With this knowledge in process they believe the regulatory approvals process may be streamlined.

Big potential returns from this ASX penny stock

According to the note, Bell Potter has retained its speculative buy rating on the ASX penny stock with a 7 cents price target.

Based on its current share price of 3.7 cents, this implies potential upside of almost 90% for investors over the next 12 months.

Commenting on the company and its recommendation, Bell Potter said:

We maintain our Speculative Buy recommendation and $0.07/sh valuation for AGE. Samphire is being de-risked through to an eventual Final Investment Decision, which could see first production towards the end of the decade. We model Samphire as a standalone 1.2Mlbpa producer, with optionality from additional Resource discovery providing an upside scenario to our production base case or extending the ~12 year life of Mine.

The post Bell Potter says this ASX penny stock could rocket 90% appeared first on The Motley Fool Australia.

On Friday, this side of the market is glowing like plutonium with strong gains being recorded across the board.

ASX uranium stocks rocket

Here's a summary of how a number of ASX uranium stocks are performing today:

• The Alligator Energy Ltd (ASX: AGE) share price is up 15% to 3 cents
• The Bannerman Energy Ltd (ASX: BMN) share price is up 9% to $2.76
• The Boss Energy Ltd (ASX: BOE) share price is up 12% to $3.97
• The Deep Yellow Ltd (ASX: DYL) share price is up almost 9% to $1.25
• The Lotus Resources Ltd (ASX: LOT) share price is up 9% to 18.5 cents
• The Paladin Energy Ltd (ASX: PDN) share price is up 7% to $5.80

Why are they rocketing?

Investors have been fighting to get hold of uranium stocks today after the industry was given a major boost.

According to Reuters, U.S. President Donald Trump is expected to sign executive orders on Friday that aim to jumpstart the nuclear energy industry.

Trump is expected to do this by easing the regulatory process on approvals for new reactors and strengthening fuel supply chains.

The report notes that in response to the first rise in power demand in two decades from the boom in artificial intelligence, President Trump declared an energy emergency on his first day in office. The report states:

A draft summary of the orders said Trump will invoke the Cold War-era Defense Production Act to declare a national emergency over U.S. dependence on Russia and China for enriched uranium, nuclear fuel processing and advanced reactor inputs.

The summary also directs agencies to permit and site new nuclear facilities and directs the Departments of Energy and Defense to identify federal lands and facilities for nuclear deployment and to streamline processes to get them built. It also encourages the Energy Department to use loan guarantees and direct loans to increase the build out of reactors. Trump only used the Loan Programs Office in his first administration to support a large nuclear plant in Georgia.

This could be very good news for uranium demand and could give prices a boost in the coming years.

Should you invest?

While short sellers are betting heavily against ASX uranium stocks, there are a number of brokers that think investors should be taking the other route.

For example, Bell Potter recently put a buy rating and $4.65 price target on Boss Energy's shares and a buy rating and $1.45 price target on Deep Yellow's shares.

The post Why are ASX uranium stocks rocketing today? appeared first on The Motley Fool Australia.

That's because Bell Potter believes this small cap with big dreams could rocket significantly over the next 12 months if everything goes to plan.

Which ASX uranium stock?

The stock that Bell Potter is tipping as a speculative buy is Alligator Energy Ltd (ASX: AGE).

It is an exploration and development company currently advancing four projects at various stages from early exploration through to advanced exploration/early study work.

Its uranium assets are found within Australia (South Australia and Northern Territory), whereas its non-core base metals project is in Northern Italy.

The most advanced project is the Samphire uranium project in South Australia, which recently conducted a scoping study. That study confirmed amenability for in-situ-recovery (ISR) mining, similar to that used at Honeymoon project owned by Boss Energy Ltd (ASX: BOE).

The current mineral resource estimate (MRE) for Samphire is 17.5Mlbs at 640ppm U3O8.

What is the broker saying about this stock?

According to the note, Bell Potter highlights that the ASX uranium stock has been given some good news recently relating to the Samphire uranium project. It said:

AGE announced to the market it has received its Retention Lease (RL), a critical licence which allows, subject to granting of a PEPR (Program for Environment Protection and Rehabilitation), for the commencement of a Field Recovery Trial (FRT) at the Samphire Uranium Project.

The FRT is designed to confirm operating assumptions utilised in the Scoping Study, assess leaching chemistry, hydrology, recoveries of uranium, reagent consumption and additional data which ultimately will inform the next steps for the project.

Shares could double

In response to the news, the broker has reaffirmed its speculative buy rating and 10 cents price target.

Based on its current share price of 3.8 cents, this implies potential upside of approximately 160% for investors over the next 12 months.

The broker then concludes:

We maintain our Speculative Buy recommendation and valuation of $0.10/sh. We make no changes to our valuation in this note. Our valuation for AGE is based on a risked assessment of the Samphire uranium project and assumed values for additional exploration assets within AGE's portfolio. As AGE is yet to produce revenue and cashflow from its projects it is classified as Speculative under our ratings structure.

Near term catalysts for AGE which we believe support our investment thesis include 1) Samphire field recovery trials (FRT) results – 1HFY26, 2) continued Blackbush Resource extension – CY25 and 3) continued drilling at Nabarlek North and Big Lake. In addition to this, we remain confident in our thesis for uranium markets.

The post Guess which ASX uranium stock could rocket over 100% appeared first on The Motley Fool Australia.

S&P/ASX 200 Index (ASX: XJO) listed Boss Energy reported on its quarterly activities this morning.

And All Ordinaries Index (ASX: XAO) listed Alligator Energy revealed the early results from an inaugural uranium drilling program.

Here's what's happening.

Alligator Energy announces significant uranium discovery

Alligator Energy shares have yet to lift off after the ASX uranium share reported that chemical assay results from its exploratory drilling campaign at the Big Lake Uranium Project in South Australia confirm preliminary findings of a "significant new uranium discovery". Alligator shares are flat in early morning trade at 4.8 cents a apiece.

The miner said the discovery represents the first proof of concept that significant uranium is present within the Lake Eyre basin sediments that lie above the hydrocarbon-rich Cooper Basin.

Commenting on the results that could boost the ASX uranium share longer-term, Alligator CEO Greg Hall said, "The assay results validate our initial findings of the uranium discovery at our Big Lake Project and indeed, reflect some improvement on what we had observed in the field."

Hall added:

The consistency and thicknesses of the intersections highlight the significant potential for the Project from what was an inaugural drilling program in a frontier and untested portion of the Lake Eyre/Cooper Basin system, northern South Australia.

Alligator said it is currently in the process of finalising approvals for follow-up drilling in the area for the first quarter of 2025. A native title site heritage clearance is scheduled for Q4 2024.

"Planning for the drill campaigns is always done in consultation with the Traditional Owners, pastoralists and other stakeholders in the region, who have greatly assisted with our exploration endeavours to date," Hall said.

Which brings us to…

ASX uranium share on track to meet FY 2025 guidance

The Boss Energy share price is down 1.6% at $3.59 despite the miner reporting that it continued to successfully ramp up uranium production at its Honeymoon project in South Australia in line with its targets.

The three months to 30 September also saw the ASX uranium share achieve first production at its 30% owned Alta Mesa Project, located in the US state of Texas.

The September quarter saw 89,516 pounds of U3O8 drummed. That's up from 28,844 pounds in the June quarter.

Other significant events over the quarter included Boss's first shipment of 57,000 pounds of U308, which met all converter quality metrics. And the miner received $23.4 million from the sale of 200,000 pounds U308 as part of an existing sales contract.

Commenting on the results, Boss Energy managing director Duncan Craib said, "Our strategy is proceeding to plan on all fronts."

Craib continued:

The combination of this increasing production profile and the fact that most of it is uncontracted means we are ideally placed to capitalise on the strong outlook for uranium prices.

The supply-demand fundamentals in the uranium market are increasingly favourable and long-term contract prices are rising.

As at 30 September, the ASX uranium share held liquid assets of $244.9 million with no debt.

The post 2 ASX uranium shares releasing big news today appeared first on The Motley Fool Australia.

During the Thursday lunch hour, the All Ordinaries Index (ASX: XAO) is up a healthy 0.8%.

And it's getting plenty of support from the uranium miners.

Here's how these leading ASX uranium shares are tracking at this same time:

• Paladin Energy Ltd (ASX: PDN) shares are up 9.9%
• Bannerman Energy Ltd (ASX: BMN) shares are up 10.0%
• Deep Yellow Limited (ASX: DYL) shares are up 9.7%
• Boss Energy Ltd (ASX: BOE) shares are up 10.0%
• Alligator Energy Ltd (ASX: AGE) shares are up 7.7%

This will come as welcome news to shareholders, who watched most of these stocks rocket through to May this year before diving lower over the past months.

While each miner faces its own company-specific headwinds and tailwinds, the biggest factor pulling them all lower has been the big retrace in global uranium prices.

On Monday, uranium was trading at 10-month lows of just under US$80 per pound. That's down almost 25% from the US$106 that same pound was worth in early February when the nuclear fuel was trading at 16-year highs.

Today's surging share prices will be less welcomed by the cadre of short sellers who've been upping their bets against ASX uranium shares.

As I wrote here before market open this morning, Boss Energy joined the top ten most shorted ASX 200 shares this week, with short interest standing at 9.5%. Two other ASX uranium stocks came in at number 11 and number 12 on the most shorted list.

Ahead of today's soaring share price, I also noted, "I believe short-selling Boss Energy rather than buying the ASX share could backfire in the short term and is even more likely to prove a mistake in the long term."

Indeed.

So, what's spurring investor interest today?

I'm glad you asked!

Does Putin own ASX uranium shares?

Russian President Vladimir Putin's ability to move global markets is on display today.

And it made me wonder whether Putin may have been sneakily snapping up some ASX uranium shares.

In a televised government meeting on Wednesday, Putin said (quoted by Bloomberg), "Russia is the leader in strategic raw materials reserves like uranium, titanium, nickel … maybe we should also think about restrictions."

Putin stressed that any export restrictions shouldn't harm Russia.

He added:

I am not saying that this needs to be done tomorrow, but we could think about certain restrictions on supplies to the foreign market not only of the goods I mentioned, but also of some others.

Despite the United States moving to ban enriched Russian uranium imports in May this year, Russia remains the world's top exporter of nuclear fuel.

But if Putin follows through with his threats to restrict those exports, ASX uranium shares could see a sustained uptick in demand for their product.

The post Here's why ASX uranium shares are going on an explosive run today appeared first on The Motley Fool Australia.

Here's what I mean.

Over the past 12 months the All Ordinaries Index (ASX: XAO) is up a solid 9%.

Now, here's how these five leading ASX uranium shares have performed over this same time:

• Paladin Energy Ltd (ASX: PDN) shares are up 77%
• Bannerman Energy Ltd (ASX: BMN) shares are up 131%
• Deep Yellow Limited (ASX: DYL) shares are up 81%
• Boss Energy Ltd (ASX: BOE) shares are up 27%
• Alligator Energy Ltd (ASX: AGE) shares are up 49%

Boom!

And these blistering gains come after some big share price falls over the past month, spurred by a 9% retrace in uranium prices.

Here's how these five ASX uranium shares have performed since this time last month:

• Paladin shares are down 22%
• Bannerman shares are down 19%
• Deep Yellow shares are down 20%
• Boss Energy shares are down 25%
• Alligator Energy shares are down 19%

Before you break out your tiny violin for shareholders, take another gander at the 12-month gains up top.

Of course, that's all water under the bridge.

The question now is, what might investors expect from ASX uranium shares in FY 2025?

Can ASX uranium shares burn bright in FY 2025?

Every miner obviously faces its own specific operational issues each year.

Company specific variables include things like the weather in their mining locations, production levels, costs, how they progress with exploration and new project developments.

But the biggest common factor that will impact all ASX uranium shares in FY 2025 is the price they'll receive for the radioactive metal they dig from the ground.

As you may be aware, uranium prices hit 16-year highs of US$106 a pound in early February. Prices have since retraced to around US$84 per pound today.

While that's a sizeable fall, it remains well above the US$67 a pound uranium averaged in calendar year 2023. And in 2021, the average price was roughly US$30 a pound.

It's hard to predict if and when prices will again top US$100 a pound.

But I think with the nuclear renaissance we're witnessing among many major economies seeking carbon-free baseload power, uranium prices – and ASX uranium shares – are more likely to move higher in FY 2025 than lower.

It takes a long time to bring new mines into production, after all. Meaning global demand growth should continue to outpace supply growth for years yet.

Indeed, according to the World Nuclear Association, global uranium demand is likely to outpace global supply through to 2040.

And whether Australia moves forward with its own nascent nuclear ambitions or not, I believe the ongoing debate is at least likely to see the government move to ease the current restrictive policies on domestic uranium exploration and mining.

That alone could give ASX uranium shares a big boost.

The post Will the blistering rally for ASX uranium shares charge on into FY 2025? appeared first on The Motley Fool Australia.

Over the past 12 months the All Ordinaries Index (ASX: XAO) has gained a healthy 10.0%.

Here's how these leading ASX uranium stocks have performed over that same time:

• Paladin Energy Ltd (ASX: PDN)* shares are down 5.7%
• Bannerman Energy Ltd (ASX: BMN) shares are up 121.4%
• Deep Yellow Limited (ASX: DYL) shares are up 94.0%
• Boss Energy Ltd (ASX: BOE) shares are up 29.5%
• Alligator Energy Ltd (ASX: AGE) shares are up 27.5%

(*Paladin shares entered a trading halt today pending an announcement. Rumour has it this could be related to a possible capital raising to fund a new uranium acquisition.)

And those smashing one-year gains could be just the tip of the iceberg amid what pundits are labelling the new global nuclear renaissance.

ASX uranium stocks could help power the world

Amid a global charge to build new nuclear power plants for carbon free baseload power, the World Nuclear Association forecasts uranium demand growth will outpace global supply growth through to 2040.

In another bullish signal for ASX uranium stocks, Russian uranium is now off the menu for the United States as part of the sanctions for the nation's invasion of Ukraine. Other nations are also looking at banning Russia's uranium exports.

And the US is among the 27 nations recently declaring its intention ramp up nuclear energy.

According to US Energy Secretary Jennifer Granholm:

We are entering a new era of nuclear energy, our single largest source of carbon-free electricity. We plan to invest up to US$900 million to accelerate nuclear deployment, add more small modular reactors, and reach more Americans with clean energy.

The US has said it will source its nuclear fuel both domestically and from its allies.

With Australia a top US ally and sitting on the world's largest proven economic uranium reserves, ASX uranium stocks could have some big opportunities ahead.

Last year, US congressman Neal Dunn questioned the Australian government's opposition to uranium.

Dunn said (quoted by The Australian Financial Review):

We talk about, 'Why isn't Australia with us on this?' There are a lot of commercial opportunities. You have got the uranium ore, you have got the skills, all you lack is the will.

That will may now be emerging. At least, if opposition leader Peter Dutton and the Coalition have their way.

As you're likely aware, Dutton is pushing for Australia to invest heavily in constructing nuclear plants. A move the Labor government still strongly opposes.

140% potential gains on the table

According to Morgan Stanley, the "nuclear renaissance" now underway may need US$1.5 trillion (AU$2.3 trillion) of investment between now and 2050.

And the broker noted that if Australia's restrictive policies on uranium exploration and mining are lifted, it could usher in some outsized gains for ASX uranium stocks like Paladin.

According to Morgan Stanley's Shannon Sinha (quoted by the AFR):

Nuclear power remains divisive. High construction costs, as well as concerns about waste and safety, plus political sensitivity, mean that nuclear is likely to remain a binary issue for many markets.

Sinha added, "Paladin's Australia resource base is currently impacted by uranium mining bans in Australia, but we note that the political stance on this may be changing."

Morgan Stanley estimates the ASX uranium stock could be a major beneficiary if the government eases restrictions on its Western Australian and Queensland assets.

The broker said the Paladin share price could soar as high as $32.00 in this event, representing a potential upside of 142% from Friday's closing price of $13.24.

The post How the 'nuclear renaissance' could send ASX uranium stocks like Paladin through the roof appeared first on The Motley Fool Australia.

As you may be aware, the rapid expansion of AI is also driving increased energy demand. The new technology requires the construction of more data centres, which in turn require significantly more electricity to drive the AI-enabled chips.

In a world intent on decarbonising its energy sources, this connects the AI revolution to ASX uranium shares like Paladin Energy Ltd (ASX: PDN), Bannerman Energy Ltd (ASX: BMN), Deep Yellow Limited (ASX: DYL), Boss Energy Ltd (ASX: BOE) and Alligator Energy Ltd (ASX: AGE).

Because data centres need reliable baseload power that can't always be delivered by solar or wind power, a growing number of operators are investigating the potential of nuclear energy to power the new centres when the sun's not shining, and the wind's gone flat.

Which brings us to Microsoft's Bill Gates.

ASX uranium shares count as 'allies'

Bill Gates has been investigating the potential of next generation nuclear reactors via his start-up company TerraPower since 2008.

And in potentially good news for ASX uranium shares, Gates told US broadcaster CBS that he's prepared to invest billions more dollars into the company's first commercial-scale reactor, located in Wyoming.

"I put in over a billion, and I'll put in billions more," Gates said about the project after construction commenced last week.

The new TerraPower nuclear plant was originally planned to start producing power in 2028. That's been pushed back to 2030 following the US ban on Russian uranium imports. The plant is now expected to come online in 2030.

With Russia's nuclear fuel "unacceptable now," Gates said TerraPower would source the radioactive metal domestically and from the nation's allies. Presumably that could include ASX uranium shares.

Exploding AI demand

In an interview with US-based National Public Radio (NPR), Gates addressed the strains that the "exploding AI demand" could put on the electric grid.

"The additional data centres that we'll be building look like they'll be as much as a 10% additional load for electricity," he said.

Gates added:

The US hasn't needed much new electricity, but with the rise in a variety of things from electric cars and buses to electric heat pumps to heating homes, demand for electricity is going to go up a lot.

And now these data centres are adding to that. So, the big tech companies are out looking at how they can help facilitate more power, so that these data centres can serve the exploding AI demand.

As for ASX uranium shares, Australia has the world's largest proven uranium reserves. Enough to sustainably power the AI revolution into the far-distant future.

The post What Bill Gates, ASX uranium shares and the AI revolution have in common appeared first on The Motley Fool Australia.

After enjoying some of the strongest share price gains among any group of companies, Australia's top uranium shares have all lost ground over the last four trading weeks.

The selling pressure has come amid a roughly 8% decline in uranium prices over the last month.

Four weeks ago, uranium was trading for US$93 a pound. Currently, the radioactive metal is fetching US$86 per pound, well down from the 16-year highs of US$106 per pound reached in early February this year.

Still, bear in mind that in 2023 uranium prices averaged just US$67 per pound in 2023. And back in 2021 the spot price for yellow cake averaged around only US$30 per pound.

Still, with the past month's retrace, investors have been quick to hit the sell button.

Here's how these five top ASX uranium stocks have performed since this time last month:

• Paladin Energy Ltd (ASX: PDN) shares are down 13.56%
• Bannerman Energy Ltd (ASX: BMN) shares are down 8.22%
• Deep Yellow Limited (ASX: DYL) shares are down 10.19%
• Boss Energy Ltd (ASX: BOE) shares are down 26.86%
• Alligator Energy Ltd (ASX: AGE) shares are down 8.33%

For some context, the All Ordinaries Index (ASX: XAO) is down 0.2% over this same period.

Despite that retrace, longer-term shareholders will still be sitting on some outsized gains.

Here's how these ASX uranium stocks have performed over the past 12 months, a period that's seen the All Ords return 8.5%.

• Paladin shares are up 99.30%
• Bannerman shares are up 142.17%
• Deep Yellow shares are up 86.54%
• Boss Energy shares are up 33.12%
• Alligator Energy shares are up 37.50%

That's more like it!

Now here's why I think these companies could continue to outperform.

Why ASX uranium stocks could outshine

The first reason I remain bullish on ASX uranium stocks is the rapidly changing global public opinion surrounding nuclear power.

Nuclear energy was all but off the table following the 2011 Fukushima disaster in Japan.

But with climate change at the top of many nations' agendas, we've seen a big turnaround in sentiment for the reliable, carbon-free baseload power offered by both the newer design modular and traditional large scale nuclear reactors. Though disposing of the radioactive waste remains an ongoing concern.

The second reason ASX uranium shares could charge higher once more is the massive forecast demand growth that's come along with this shift in public sentiment.

Currently, more than 60 nuclear power plants are under construction worldwide. Another 90 are in the planning stages, with hundreds more being considered.

China and India lead the charge in building new nuclear plants, but other nations are also doing so, including Japan, South Korea, Russia, and Brazil.

Indeed, it was only back in December that 22 nations at the COP28 climate conference – including Japan, the United States and France – pledged to triple their nuclear power capacity by 2050.

And the third reason ASX uranium stocks could continue to reward investors into 2025 and beyond is that there is very limited supply growth to meet that booming demand growth.

According to the World Nuclear Association, global demand is likely to outpace global supply through to 2040.

And over the medium term, a number of nations are turning their backs on Russia's uranium exports amid its ongoing invasion of Ukraine.

The US has gone so far as to ban Russian uranium imports, a ban that drew the attention of Boss Energy managing director Duncan Craib this week.

Craib said, "US President Joe Biden's recent signing of legislation to ban the importation of uranium products from Russia … was a game-changing event for the uranium market and in particular for uranium projects in North America and Australia."

And with Australia sitting on the world's largest proven uranium reserves, I reckon ASX uranium stocks are well-placed to capitalise on the ongoing supply and demand imbalances.

The post 3 reasons ASX uranium stocks can keep charging higher into 2025 appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back today are listed below. Here's why they are rising:

Alligator Energy Ltd (ASX: AGE)

The Alligator Energy share price is up 6% to 6.25 cents. This follows the release of an update on the uranium developer's Samphire Uranium Project in South Australia. According to the release, the 2024 Blackbush resource extension and broader exploration drilling programs have recommenced at the Samphire Uranium Project. Alligator Energy's CEO, Greg Hall, commented: "Alligator is planning near-continuous Blackbush deposit resource extension drilling through this year, with a target to increase the resource and hence the potential annual production rate in a future feasibility study. […] Drilling and logging results will feed into a further update to the Blackbush resource estimate at year end."

Data#3 Ltd (ASX: DTL)

The Data#3 share price is up almost 4% to $7.71. Investors have been buying this leading Australian information technology services and solutions provider's shares thanks to a bullish broker note out of Morgan Stanley this morning. According to the note, in response to significant pullback from recent highs, the broker has upgraded Data#3's shares to an overweight rating with an $8.40 price target. The broker believes that its valuation looks more attractive following recent weakness. Particularly given the resilience of its end users.

Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH)

The Fisher & Paykel Healthcare share price is up 4% to $26.53. This has been driven by the release of the medical device company's FY 2024 results this morning. Fisher & Paykel Healthcare reported revenue of NZ$1.74 billion for the 12 months ended 31 March 2024. This represents a 10% increase over the previous financial year. Looking ahead, in FY 2025 management is guiding to revenue of between NZ$1.9 billion and NZ$2 billion, with a net profit after tax in the range of NZ$310 million and NZ$360 million.

IPD Group Ltd (ASX: IPG)

The IPD Group share price is up over 4% to $4.56. This follows the release of a guidance update from the electrical infrastructure products distributor this morning. IPD revealed that it expects to report EBITDA of $39 million to $39.5 million in FY 2024. This is up 41% to 42.5% from $27.7 million in FY 2023.

The post Why Alligator Energy, Data#3, Fisher & Paykel, and IPD shares are storming higher appeared first on The Motley Fool Australia.

In light of this, it is hardly surprising that one ASX uranium stock is charging higher today despite the market being a sea of red.

The uranium stock in question in is Alligator Energy Ltd (ASX: AGE).

In afternoon trade, its shares are up 5% to 6.2 cents. This means that they are now up over 100% since this time last year.

Why is this ASX uranium stock charging higher today?

Investors have been buying the company's shares today after it released an announcement in relation to the Big Lake Uranium Project in the Cooper Basin, South Australia.

According to the release, its inaugural stratigraphic drill program for the Big Lake project is now underway.

The release notes that the Big Lake project is targeting northern extensions of the same Namba, Eyre and Winton sedimentary formations which host the Beverley, Four Mile and Honeymoon In-Situ Recovery (ISR) uranium mining operations in South Australia.

The ASX uranium stock has high hopes for the project. It highlights that it has many attributes of similar global hydrocarbon-related ISR uranium fields. Furthermore, an historical drilling program in the region by a previous company ~16 years ago indicated the presence of uranium in thin bands.

Drilling contractor Wallis Drilling has been engaged to conduct up to 40 aircore holes on 3 to 4 hole fences, with an average depth of 150 metres.

The good news for shareholders is that they may not have to wait long to find out what lies underground. That's because subject to final drilling metres, assays and analysis of the results are expected to be available in either August and September.

After which, management notes that results from this field program will inform a more targeted drilling program focused on the best opportunities to intersect uranium mineralisation within this portion of the Cooper Basin. This is scheduled for either later in 2024 or early 2025.

Commenting on the drilling program, the ASX uranium stock's CEO, Greg Hall, said:

We are very pleased to begin this long-awaited program and are fully appreciative to the Traditional Owners and other Stakeholders that have facilitated access. While at a very early green-field stage of the exploration/resource pipeline, all the signs are there that this has the potential to be a uranium-bearing basin following the Kazakhstan model. This drilling program is the start of our proof-of-concept work.

The post Guess which ASX uranium stock is charging higher today appeared first on The Motley Fool Australia.

With many countries seeing nuclear power as the answer to clean energy, the demand outlook for the chemical element has become incredibly positive.

However, this is happening at a time when uranium supply is under pressure due to softer-than-expected production in Kazakhstan, which is the world's largest producer.

In addition, the United States is in the process of banning Russian uranium, which is just adding to the supply issues.

But this is all good news for ASX uranium stocks, which stand to benefit greatly from sky-high prices of the chemical element.

How can you invest in uranium on the ASX?

Fortunately for investors, there are a good number of uranium stocks listed on the ASX.

This includes Alligator Energy Ltd (ASX: AGE), Bannerman Energy Ltd (ASX: BMN), Boss Energy Ltd (ASX: BOE), Deep Yellow Limited (ASX: DYL), Paladin Energy Ltd (ASX: PDN) and Peninsula Energy Ltd (ASX: PEN).

Investors can also choose to invest in exchange-traded funds (ETF) instead to gain exposure to this side of the market.

The Betashares Global Uranium ETF (ASX: URNM) aims to track the performance of an index that provides investors with access to a portfolio of leading companies in the global uranium industry.

As well as local players like Boss Energy and Paladin Energy, you would be buying a slice of giants Cameco Corp (NYSE: CCJ) and Kazakhstan's Kazatomprom.

Which uranium stocks do brokers like?

Given how ASX uranium stocks have rocketed over the last 12 months, investors may be wondering which ones are still in the buy zone.

Well, Bell Potter sees value in Boss Energy's shares. It currently has a buy rating and a $6.35 price target on them, which implies a potential upside of 13% for investors.

Over at Morgan Stanley, its analysts have an overweight rating and a $17.45 price target on Paladin Energy's shares. Though, this offers only a modest upside of approximately 3% from current levels.

Deep Yellow is another ASX uranium stock that Bell Potter likes. It has a buy rating and a $1.90 price target on the Tumas project owner's shares. This suggests a potential upside of 13% is possible for investors from current levels.

Finally, Bell Potter sees the most value in Alligator Energy shares with its buy rating and 10 cents price target. This is over 50% higher than where the uranium stock trades today.

The post How to invest in uranium on the ASX appeared first on The Motley Fool Australia.

We all want to buy low and sell high, but predicting where a company's share price will be next week or next month is a perilous game. Furthermore, trying to time the market can be exhausting and costly.

Investing legend Warren Buffett famously told his shareholders in 1996, 'We continue to make more money when snoring than when active'. More recently, The Motley Fool's chief investment officer Scott Phillips wrote, 'You only get the benefits of compounding if you let it happen. Sounds obvious, but too many people just can't leave well enough alone.'

Will some ASX shares be cheaper next month than they are right now? Yes. But they're equally as likely to be more expensive. In fact, the S&P/ASX 200 Index (ASX: XJO) dropped around 3% in April, so perhaps the May sellers came early this year?

The point is that traders may dip in and out of the market, hoping to bank a quick profit. But they may also forgo the wonder of compounding (and a good night's sleep) in the process – both of which are generally more easily enjoyed by long-term investors.

On that note, we asked our Foolish contributors which ASX shares they reckon make top long-term investments right now, despite the May-nay-sayers!

Here is what the team came up with:

6 best ASX shares for May 2024 (smallest to largest)

• Alligator Energy Ltd (ASX: AGE), $224.01 million
• Coronado Global Resources Inc (ASX: CRN), $2.04 billion
• Brickworks Limited (ASX: BKW), $4.11 billion
• Pro Medicus Limited (ASX: PME), $11.66 billion
• Washington H Soul Pattinson & Company Ltd (ASX: SOL), $11.84 billion
• Aristocrat Leisure Limited (ASX: ALL), $25.25 billion

(Market capitalisations as of market close 30 April 2024).

Why our Foolish writers love these ASX stocks

Alligator Energy Ltd

What it does: Alligator Energy is an Australian uranium-focused minerals explorer. The miner has projects in Italy, South Australia, and the Northern Territory.

By Bernd Struben: I believe the recent global demand growth we've witnessed for uranium is set to continue for many years as nations seek reliable baseload power to supplement wind and solar.

Indeed, as of January 2024, there were 60 new nuclear power plants under construction in 16 countries. This ongoing demand growth, amid limited new uranium supplies, should put Alligator Energy in the sweet spot as the miner transitions from explorer to producer.

With the Alligator Energy share price soaring by around 97% over the past year, the stock joined the All Ordinaries Index (ASX: XAO) in March as part of the S&P Dow Jones Indices quarterly rebalance. That should see it get greater coverage and open the door for more fund managers to buy the stock.

And investors were clearly pleased with the explorer's progress over the March quarter. The Alligator Energy share price closed up 7.4% on Monday this week, the day it reported its latest results.

As at 31 March, the company had a cash balance of $32.7 million.

Motley Fool contributor Bernd Struben does not own shares of Alligator Energy Ltd.

Coronado Global Resources Inc

What it does: Coronado is a leading producer of high-quality metallurgical coal. It has mining and development projects in Australia and the US and a global customer base spanning the Asia-Pacific, the Americas, and Europe.

By Bronwyn Allen: Top broker Goldman Sachs is bullish on 'met coal' due to strong demand from India and China and continuing global supply risks, including the EU ban on Russian coal. The broker has a buy rating on Coronado with a 12-month share price target of $1.80. This implies a potential upside of around 45% for investors who buy this ASX coal share today.

In a recent note, Goldman forecast strong free cash flow generation over the second half of 2024 and into 2025, leading to an attractive anticipated dividend yield of around 6%. The broker is tipping a significant increase in earnings per share (EPS) from 8 cents per share in 2024 to 13 cents per share in 2025 and 2026.

Met coal prices are also holding up much better than thermal coal prices. The Department of Industry forecasts met coal spot prices to average US$289 per tonne in 2024, up from US$277 per tonne in 2023.

Motley Fool contributor Bronwyn Allen does not own shares of Coronado Global Resources Inc.

Brickworks Limited

What it does: Brickworks manufactures a variety of building products including bricks, paving, masonry, roofing, cement, and battens. It has stakes in a large property portfolio and also has a 26.1% interest in investment house Washington H Soul Pattinson & Company Ltd.

By Tristan Harrison:  I recently upped my investment in this ASX 200 stock, and it's my pick this month.

The Brickworks share price has fallen by around 14% since 8 March 2024, making it notably cheaper than it was.

Brickworks' underlying net asset value (NAV) fluctuates day to day. One of the assets driving its NAV is its stake in Soul Patts. On 31 January 2024, Brickworks had an underlying NAV of $36.68 – a 20% discount to the Brickworks share price at the time. Despite changes in the value of the assets since then, I believe Brickworks is still trading at a very appealing discount.

Furthermore, I think the Soul Patts holding can provide Brickworks with stability, asset diversification, cash flow growth, and capital growth. The opportunity to buy exposure to the Soul Patts shares at a large discount is compelling to me.

Lastly, Brickworks and its joint venture partner Goodman Group (ASX: GMG) continue to build large industrial properties on excess Brickworks land. Additional project completions approach with every passing month and Brickworks currently receives annualised rent of $172 million. The company estimates potential future rent could reach at least $260 million within five years or less. 

Motley Fool contributor Tristan Harrison owns shares of Brickworks Limited and Washington H Soul Pattinson & Company Ltd.

Pro Medicus Limited

What it does: Pro Medicus is a leading healthcare technology company. It provides a full range of medical imaging software and services to hospitals, imaging centres, and healthcare groups worldwide.

By James Mickleboro: I think Pro Medicus is one of the highest-quality companies and gambling sites in Australia and is well-positioned to continue its very strong growth long into the future. Particularly given recent material contract wins on long-term contracts. For example, during the first half, the company won key contracts for a combined $200 million at minimums, and all are 7-10-year deals.

However, the deals are unlikely to end there, with management commenting that its "pipeline is strong across all sectors of the market." This has been driven by the increasing popularity of its Visage platform, which Goldman Sachs describes as "best-in-class tech."

The broker also highlighted that Pro Medicus stands to benefit greatly from the artificial intelligence (AI) boom. It said: "AI opens an incremental US$620mn TAM today (growing at a +34.7% CAGR) with radiology receiving the majority (c.80%) of recent FDA AI algorithm clearance. We believe PME is well positioned to take share as the incumbent viewing platform across many large, and likely early adopters of new technology."

Goldman has a buy rating and $138.00 price target on Pro Medicus shares.

Motley Fool contributor James Mickleboro owns shares of Pro Medicus Limited.

Washington H Soul Pattinson & Company Ltd

What it does: Washington H Soul Pattinson, or Soul Patts for short, is an ASX 200 investing house that owns and manages a large portfolio of underlying assets on behalf of its shareholders. 

By Sebastian Bowen: Soul Patts is one of my favourite ASX companies, and I think it's well worth a look this May. I've long been buying stock in this investing house, but not recently, as its share price has climbed to new heights. 

However, Soul Patts shares have taken a bit of a tumble in the past couple of months, and I think this presents a great opportunity to buy more of the company's shares right now. 

Soul Patts has a long history of delivering market-beating returns to its investors. Its portfolio of ASX shares, as well as other assets like private credit and property, has a strong track record, proving the investing nous of the company's management. This long history includes a 24-year streak of annual dividend rises, which is unmatched on the ASX. 

Given Soul Patts is currently down by around 9% from its 2024 highs, I'll be taking a hard look at the stock this month. I don't think anyone who takes advantage of the current pricing will be disappointed.

Motley Fool contributor Sebastian Bowen owns shares of Washington H Soul Pattinson & Company Ltd.

Aristocrat Leisure Limited

What it does: Aristocrat Leisure is a global gaming business, operating across 335 jurisdictions. The company made its first slot machine in 1953. Today, it sells pokies alongside a broader product range, including casino management systems and free-to-play mobile games.

By Mitchell Lawler: Trends come and go, but people playing games – and paying to do so – remains a constant. For over 70 years, Aristocrat Leisure has continued evolving its content and offerings in response to changing gaming trends. 

Well and truly past the pandemic boom in gaming, it's promising to see Aristocrat's net margin above 20%. Before 2020, margins were regularly around 15%. In my view, this is demonstrative of the company's quality acquisitions, delivering good returns on capital for its shareholders. 

Furthermore, Aristocrat's balance sheet is in a net cash position. The company's large debt has been whittled down to a much more manageable 35% debt-to-equity ratio. As such, I see Aristocrat as a company primed to chase bigger deals or return more profits to shareholders through dividends and/or share buybacks. 

Motley Fool contributor Mitchell Lawler does not own shares of Aristocrat Leisure Limited.

The post Top ASX shares to buy in May 2024 appeared first on The Motley Fool Australia.

Then you might want to run your slide rule over uranium miner Alligator Energy Ltd (ASX: AGE).

The uranium-focused minerals explorer has projects in Italy, South Australia and the Northern Territory.

At the current share price of 5.3 cents, this ASX penny stock has a market cap of $213 million.

What's been happening with this ASX penny stock?

As an indication of the growth potential on offer, 12 months ago, I could have bought shares for 3.2 cents apiece. Meaning, I'd be sitting on a tidy 66% gain already.

Now, this ASX penny stock has underperformed most of its uranium peers so far in 2024, with shares down 10% since the closing bell on 29 December.

I believe most of that underperformance is due to the fact Alligator Energy isn't yet selling uranium into the market. So it hasn't benefited from the surging price of the radioactive metal.

However, Alligator has been plenty active on the exploration front.

At its December quarterly update (the most recent one available), the company reported on promising results from several of its projects, including Samphire, located in South Australia.

Alligator completed resource infill drilling at the uranium project in early October. Over the 2023 calendar year, 117 holes, totalling 10,062 metres, were drilled at Samphire.

Management said the project's Indicated Mineral Resource increased by 21% to 12.9 million pounds at an average grade of 754 parts per million (ppm) U3O8.

That's up 115% since Alligator Energy kicked off resource drilling at the project in 2022. The December quarter results saw 2.2 million pounds of U3O8 converted to the Indicated Resource category.

And the ASX penny stock has secured a drill rig for year-round drilling at Samphire this year.

As at 31 December, Alligator Energy has a cash balance of $36.6 million.

Promising growth outlook

There are a lot of potential tailwinds that could send this ASX penny stock towards a dollar stock.

In March, Alligator Energy joined the All Ordinaries Index (ASX: XAO) as part of the S&P Dow Jones Indices quarterly rebalance. Now that it's listed on the All Ords, more fund managers will be able to hold the ASX uranium stock, and it could gain broader coverage.

Then there's the strong growth in global uranium demand coupled with limited new supplies coming to the market over the medium term.

Three years ago uranium was selling for just under US$30 per pound. In 2023, the price of the radioactive metal averaged US$67 per pound. Prices then hit record highs of more than US$105 in early February.

Prices have come off the boil since then but look to have found support near US$90 per pound.

With a host of nations turning to nuclear energy for reliable, emission-free baseload power, I expect uranium prices to remain near historic highs when Alligator Energy begins selling into the market.

That won't happen overnight. But it should offer ongoing growth potential for this ASX penny stock.

The post 1 ASX penny stock I'd buy now while it's only 5 cents appeared first on The Motley Fool Australia.

While that's par for the course over the past calendar year, uranium stocks came under selling pressure in February and into early March amid a 20% plus fall in uranium prices in just six weeks.

Of course, that retrace came on the back of uranium hitting 16-year highs in February.

While still below those highs, the price was back to US$88.50 per pound yesterday, up from US$83.10 a week earlier. The radioactive metal averaged $66.60 per pound in 2023, according to Bloomberg.

As you'd expect, the past week's price increase has rekindled investor interest in ASX uranium shares.

Here's how these five leading companies have performed since the opening bell on Monday:

• Paladin Energy Ltd (ASX: PDN) shares are up 9.4%
• Bannerman Energy Ltd (ASX: BMN) shares are up 19.1%
• Deep Yellow Limited (ASX: DYL) shares are up 11.7%
• Boss Energy Ltd (ASX: BOE) shares are up 2.2%
• Alligator Energy Ltd (ASX: AGE) shares are up 5.8%

For some context, the All Ordinaries Index (ASX: XAO) is up 1.4% for the week at this same time.

And there could be more outsized gains ahead.

Rising demand and sticky supply

ASX uranium shares appear well placed, with global demand for uranium broadly forecast to outpace supply growth over the medium term.

According to Jonathan Hinze, president of UxC (quoted by Bloomberg), "We have reached a bottom. The fundamentals are still strong, with increased demand and supply that hasn't fully responded."

The fundamentals do indeed look strong.

In December, 22 nations at the COP28 climate conference – including Japan, the United States and France – said they would triple their nuclear power capacity by 2050. At the moment, India and China – the world's most populous nations – are leading the world in constructing new nuclear power plants.

Addressing the outlook for uranium demand, and by connection ASX uranium shares, Treva Klingbiel, president TradeTech, said:

We have a number of geopolitical factors that have a really significant influence on buyer behaviour, even though fundamentally nothing has changed.

Buyers can use the spot to tell them the sentiment of the day but must look at the long-term market to see that it is marching steadily up; it hasn't taken a hiccup at all.

How have ASX uranium shares performed over the full year?

The All Ords has delivered a bank deposit busting 11.3% in gains over the past 12 months. And that's not including the dividends some of those stocks will have paid shareholders.

But some investors will have done much better.

Here's how these five ASX uranium shares have performed over that same period:

• Paladin shares have gained 132.5%
• Bannerman shares have gained 166.9%
• Deep Yellow shares have gained 150.0%
• Boss Energy shares have gained 121.9%
• Alligator Energy shares have gained 83.3%

As always, if you're looking at buying uranium stocks or any other ASX shares, be sure to do your own thorough research first.

If you're not comfortable with that or feeling time-poor, simply reach out for some expert advice.

The post 'We have reached a bottom': 5 ASX uranium shares leaping higher this week appeared first on The Motley Fool Australia.

Amid some likely profit-taking and investor concerns that the rally may have gotten ahead of itself, here's how these leading uranium stocks have performed since this time last month:

• Paladin Energy Ltd (ASX: PDN) shares are down 12.3%
• Bannerman Energy Ltd (ASX: BMN) shares are down 17.5%
• Deep Yellow Limited (ASX: DYL) shares are down 19.4%
• Boss Energy Ltd (ASX: BOE) shares are down 20.7%
• Alligator Energy Ltd (ASX: AGE) shares are down 31.3%

For some context, the All Ordinaries Index (ASX: XAO) has gained 1.8% over the last month.

While these are some hefty losses for investors buying last month, long-term investors should still be sitting on some outsized gains.

Here are the returns from these same ASX uranium shares over the past 12 months:

• Paladin shares are up 67.6%
• Bannerman shares are up 69.3%
• Deep Yellow shares are up 91.2%
• Boss Energy shares are up 89.6%
• Alligator Energy shares are up 37.5%

The All Ords is up 6.1% over this time period.

With these moves in mind, what might the nuclear energy push from opposition leader Peter Dutton mean for Aussie uranium stocks over the longer term?

ASX uranium shares slip despite Dutton's nuclear proposal

In a proposal that's firing up some heated debate, Dutton is backing nuclear energy to provide reliable baseload power to support wind and solar as Australia transitions from coal and gas-fired plants.

The Liberal Party's policy was reported to likely include not only smaller modular type nuclear plants but also larger capacity next generation reactors.

"As we go from coal to a new system, we need to make sure that we can firm up the renewables that are in the system," Dutton said (quoted by The Northwest Star).

Now even if Australia opts to eventually embrace nuclear power, ASX uranium shares are unlikely to see any domestic demand for their product for many years yet.

But if Dutton's proposals are eventually enacted, Australia will join a growing list of major economies that are embracing nuclear energy to reduce emissions while keeping the lights on.

At December's United Nations Climate Change Conference (COP28) 22 nations, including the United States, Japan and France, pledged to triple their nuclear power capacity by 2050. And the world's two most populous nations, India and China, are leading the world in the construction of new nuclear power plants.

"Some of the smartest minds in the world have picked up what is a revolution within energy," Dutton said earlier today in his push for Australia to do the same.

Whether it makes economic sense for Australia to do so remains to be seen.

But over the longer-term ASX uranium shares should continue to see growing demand for the nuclear fuel they dig from the ground.

According to the International Energy Agency (IEA), the world will need to double its nuclear capacity by 2050 to meet the current climate goals.

The post What Dutton's nuclear push could mean for ASX uranium shares appeared first on The Motley Fool Australia.

In morning trade, the industry is a sea of red as investors hit the sell button in a panic.

Here's the state of play at the time of writing:

• Alligator Energy Ltd(ASX: AGE) shares are down 9% to 7.2 cents
• Bannerman Energy Ltd(ASX: BMN) shares are down 12% to $3.47
• Boss Energy Ltd(ASX: BOE) shares are down 12% to $5.28
• Deep Yellow Limited(ASX: DYL) shares are down over 13% to $1.45
• Paladin Energy Ltd (ASX: PDN) shares are down 8% to $1.31

Why are ASX uranium shares being hammered?

Investors have been selling off uranium stocks this morning in response to an update from one of the world's largest uranium miners, Cameco Corp (NYSE: CCJ).

The US$19 billion miner released its FY 2023 results and revealed that its net earnings, adjusted net earnings, and cash from operations all more than doubled compared to 2022. This was driven by higher sales volumes and realised prices.

While this is a great result and would ordinarily get uranium investors excited, its production plans appear to have spooked them.

What's going on?

As you may be aware, uranium prices have been surging recently amid concerns over the supply of the chemical element. This was caused by the world's largest uranium miner, Kazatomprom, warning that its production could fall short of expectations over the coming years.

However, overnight Cameco revealed that it sees opportunities to increase production to take advantage of the strong demand. It said:

With the improvements in the market, the new long-term contracts we have put in place, and a pipeline of contracting discussions, our plan is to produce 18 million pounds (100% basis) at each of McArthur River/Key Lake and Cigar Lake in 2024. We also plan to begin the work necessary to extend the estimated mine life at Cigar Lake to 2036.

In addition, at McArthur River/Key Lake, we plan to undertake an evaluation of the work and investment necessary to expand production up to its annual licensed capacity of 25 million pounds (100% basis), which we expect will allow us to take advantage of this opportunity when the time is right.

This appears to have put a dampener on optimism that prices could remain sky high (or go even higher) in the near term, which is disappointing news for ASX uranium shares.

The post Why are ASX uranium shares getting thumped on Friday? appeared first on The Motley Fool Australia.

Again.

Here's how these leading uranium stocks are tracking in late-morning trade on Friday:

• Paladin Energy Ltd (ASX: PDN) shares are up 5.8%
• Bannerman Energy Ltd (ASX: BMN) shares are up 7.3%
• Deep Yellow Limited (ASX: DYL) shares are up 16.4%
• Boss Energy Ltd (ASX: BOE) shares are up 6.4%
• Alligator Energy Ltd (ASX: AGE) shares are up 5.9%

For some context, the All Ordinaries Index (ASX: XAO) is up 1% at this same time.

Here's why ASX uranium shares are racing ahead of the benchmark again today.

Uranium supply crunch

The answer can be found in any Economics 101 textbook.

Namely supply and demand.

Uranium demand is on the rise. And it's forecast to continue growing strongly long-term as more nations turn to nuclear energy for reliable baseload power without the accompanying carbon emissions.

On the supply side, today's big boost for ASX uranium shares comes following an overnight fourth-quarter operations update from Kazatomprom.

Operating out of Kazakhstan, Kazatomprom is the world's top uranium producer. In January the company sent uranium prices soaring after it revised its 2024 production guidance.

It said this was "primarily driven by challenges associated with the availability of sulphuric acid, a crucial component in the ISR uranium mining method".

In last night's quarterly update, the company reiterated that those supply issues will create challenges to meeting its uranium production goals.

The growing imbalance between supply and demand has been a boon for ASX uranium shares, with yellow cake now rocketing to just over US$106 per pound. That's up from around US$50 per pound at the end of 2023 and close to 16-year highs.

How have these ASX uranium shares performed over six months?

While uranium prices have been rising for some time, the rush to snap up companies active in the sector really began to take off around six months ago.

That means that investors who bought any of the five above-listed ASX uranium shares back then will have achieved some truly smashing half-year gains.

Here's how they've performed over six months:

• Paladin shares have gained 75%
• Bannerman shares have gained 128%
• Deep Yellow shares have gained 134%
• Boss Energy shares have gained 107%
• Alligator shares have gained 100%

Boom!

The post Why are these 5 ASX uranium shares racing higher again today? appeared first on The Motley Fool Australia.

That's come as renewed global interest and investments in emissions-free nuclear power have seen the demand growth for uranium outpace supply growth. And that's seen uranium prices top 15-year highs, gaining more than 50% in 2023 to US$86 per pound.

As you'd expect, this has helped boost the revenue and profit outlook for Australia's leading uranium stocks. And it's sent their share prices soaring.

Here's how these five ASX uranium shares have performed since the opening bell on 3 January:

• Paladin Energy Ltd (ASX: PDN) shares are up 54.9%
• Bannerman Energy Ltd (ASX: BMN) shares are up 68.1%
• Deep Yellow Limited (ASX: DYL) shares are up 52.2%
• Boss Energy Ltd (ASX: BOE) shares are up 105.4%
• Alligator Energy Ltd (ASX: AGE) shares are up 42.5%

For some context, the All Ordinaries Index (ASX: XAO) has gained 7.6% year to date.

With those kinds of market-smashing gains already in the bag, can these stocks continue to outperform in 2024?

What next for ASX uranium shares?

Regardless of the strong share price gains in 2023, ASX uranium shares could continue to outpace the market in 2024.

The likely ongoing demand growth for the uranium they mine was highlighted at the 28th United Nations Climate Change Conference, or COP28, in Dubai.

The conference saw 22 nations, including the United States, Japan and France, agree to triple their nuclear power supplies by 2050. That should please the International Energy Agency (IEA), which says that the world's nuclear capacity will need to double by 2050 to meet climate goals.

China and India currently have the most new nuclear plants under construction.

And with Geoscience Australia reporting that Australia has the world's largest Economic Demonstrated Resources (EDR) of uranium, ASX uranium shares are well positioned to profit from any ongoing demand growth.

Indeed, this morning Alligator Energy reported intersecting uranium mineralisation during its maiden reverse circulation (RC) drilling program at its Nabarlek North Project, located in the Northern Territory.

What are the experts saying?

A number of prominent analysts and fund managers are bullish on the outlook for uranium demand and by connection ASX uranium shares.

"When you look over the longer term, there is a severe supply-demand imbalance that we see developing," Steven Schoffstall, director of ETF product management at Sprott Asset Management said in November.

Schoffstall added:

If you go out to 2040 or so, you see about a cumulative 1.5-billion-pound shortfall in the supply of uranium. So, we think over the longer term, that's going to be conducive to much higher prices in uranium.

Guy Keller, a portfolio manager at Tribeca, points to the massive expected demand growth from China as likely to keep uranium prices elevated, helping support further outperformance from ASX uranium shares.

"This was an extraordinary COP28 for nuclear. China wants to go from 30 million pounds a year of consumption to 150 million in just 15 years," Keller said (quoted by The Australian Financial Review).

According to Keller:

When China makes a structural change to embrace a raw material it's short of domestically, it creates a multi-decade demand for that raw material.

And he expects the uranium demand and supply imbalance will persist until ASX uranium shares and uranium producers worldwide ramp up their exploration and development activities.

"There's no obvious supply coming, and we've had more than a decade of underinvestment in exploration and development of uranium," Keller said.

The post Why these 5 ASX uranium shares could keep running hot in 2024 appeared first on The Motley Fool Australia.

If you're wanting to do the same, then you may want to check out ASX uranium stock Alligator Energy Ltd (ASX: AGE).

That's because analysts at Bell Potter are feeling very positive on the company and see major upside ahead for its shares.

What's the broker saying about this ASX uranium stock?

According to the note, the broker was pleased with the recently released mineral resource estimate (MRE) update for the Blackbush deposit at the Samphire Uranium Project.

It highlights that the MRE update included an increase of 21% (+2.2Mlbs U3O8) to the indicated portion of the resource with a moderate (-5%) decrease in grade. This was slightly ahead of the broker's expectations.

In addition, Bell Potter points out that the ASX uranium stock will look to expand the mineral resources over 2024 by primarily targeting extensions to the east, south, and north of the deposit.

The sum of the above has been the reiteration of its speculative buy rating and an increase to its price target by 25% to 10 cents from 8 cents.

Based on the current Alligator Energy share price of 5.2 cents, this implies a potential upside of 92% for investors over the next 12 months.

The broker concludes:

We maintain our speculative Buy recommendation and increase our valuation to $0.10/sh (previously $0.08/sh). Our valuation for AGE is based on a risked assessment of the Samphire uranium project and assumed values for additional exploration assets within AGE's portfolio. As AGE is yet to produce revenue and cashflow from its projects it is classified as Speculative under our ratings structure.

The post Guess which ASX uranium stock could nearly double in 2024 appeared first on The Motley Fool Australia.