Uranium stocks

Hi Derek,

The uranium space has struggled over the last 6-9 months but we believe its offering compelling value, it’s just a case of when the market agrees!

1. Paladin (PDN): We have covered PDN extensively over recent months but the primary reason we have it as number one is the markets dramatic overreaction to it production downgrade in November: The market wiped $800m off the market cap of Paladin – and yet the worst-case scenario was a lot more benign.  They now have operations in both Namibia and Canada through their acquisition of Fission, which, was a complex transaction, but is now done. If Uranium prices go up over time, PDN will follow in an exaggerated way.
2. Boss Energy (BOE): Operates the Honeymoon project in South Australia, and having restarted operations in 2024, they are ramping up to full production of 2.4Mlb in FY27. However, their processing plant is still in construction and having witnessed poor execution from PDN and PEN in recent times, investors are understandably very cautious. We believe BOE is now offering excellent risk/reward below $3 but patience might be required.
3. Cameco (CCJ US): Big, diversified operator that reported on Thursday – we covered the result here.  The only issue for CCJ in the near term is they over-committed on sales and is expecting to make the difference up on the spot market and other purchases. The contract book is gradually improving in terms of achieved pricing, although Cameco is only expecting to achieve a price of US$61/lb in 2025 if the spot price averages US$80/lb. We believe the $US45-50 area is a great entry to the stock.

All in all, we think Uranium has a great future, but it’s a volatile space, and having a collection of positions makes sense to us.

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Boss Energy Ltd (BOE)

LAST UPDATED 21/02/2025 17:09

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Boss Energy Ltd (BOE)

LAST UPDATED 21/02/2025 17:09