Paladin (PDN), Deep Yellow surge higher but lag US uranium peers
Uranium stocks surged higher overnight on the news that Cameco had secured a major contract with the US government to build new nuclear reactors. The $US80bn partnership signalled a new wave of renewed confidence in the nuclear sector – we never doubted it! Shares in CCJ powered more than +20% higher on the news, taking their advance to +108% year-to-date. Conversely Deep Yellow (DYL) has advanced +53% and Paladin (PDN) +20% underperforming over the same timeframe.
- We remain firm believers in the uranium miners, but ASX names may continue to lag.
This ongoing overseas adoption must be starting to worry the huge, short position across the local sector, with over 12% of PDN held short and 22.6% of Boss Energy (BOE). We don’t expect any support for the uranium sector from the Australian Government, but overseas companies might be starting to look at the assets of ASX-listed companies whose uranium mines will benefit from increased AI led demand for power and uranium.
