ASX Uranium stocks underperforming

Hi Scott,

Firstly, we share your frustrations, we’ve called the uranium thematically well and our Paladin (PDN) position looks awful due to poor operational execution. That said, these are two very different companies in terms of their size, their geographical footprint, the diversity of their operations and their track record. Cameco (CCJ) has multiple operations in multiple countries and is a lot more established than PDN. CCJ is 15x the size of PDN, which has one operation that is in re-start mode. They are processing stockpiles of old ore, and this has not gone to plan. This speaks to the higher risk nature of PDN vs CCJ vs a more diversified Uranium ETF.

We own both PDN and CCJ, so while we’re disappointed with PDN, we’re equally pleased with CCJ. We do believe the harsh treatment of PDN has been excessive and the stocks great value around $8 but its not for the faint hearted – we have discussed PDN a few times in the last week.

In terms of why this happens more regularly on the ASX, one of the reasons is size and maturity of our listed companies. Smaller, less diversified companies are more boom and bust in nature.

There have also been some similar stories in the gold space with the precious metal surging to new all-time highs while many stocks in the sector are struggling to rise above their 2020 highs due to operational challenges.

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Paladin Energy (PDN) v Cameco Corp. (CCJ US)

LAST UPDATED 20/11/2024 15:06

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Paladin Energy (PDN) v Cameco Corp. (CCJ US)

LAST UPDATED 20/11/2024 15:06