Aussie uranium stocks run hot

Australian uranium stocks have surged this week, fuelled by a major investment announcement from Sprott and regulatory moves in the US.

Sprott Asset Management has doubled down on its commitment to uranium, increasing its planned purchase of physical uranium to $US200 million.

Sprott’s original request was to raise $US100 million, but its capital raise was oversubscribed, and the global asset manager raised the ceiling on the placement.

The increased demand comes after the US Government signed a series of executive orders to increase US nuclear capacity last month.

For ASX investors, the effect was immediate. Boss Energy has been a standout performer, with its share price surging by over 21 per cent since Monday.

The company added fuel to its rally after announcing it had met first-year production guidance, with the Honeymoon uranium operation in South Australia drumming 850,000 pounds (lbs) of triuranium octoxide for the 2024­–25 financial year (FY25).

The milestone follows Boss achieving first positive free cash flow less than 12 months after producing the first Honeymoon drum. Boss’ stock has increased by over 119 per cent since March 11.

Paladin Energy, which produces uranium from its Langer Heinrich mine in Namibia, is trading at around $7.34, up over 7 per cent for the week.

This is a significant recovery from November 2024, when the company’s share price dropped by 25 per cent within hours of an announcement that the miner was downgrading its production guidance for FY25.

Other uranium stocks that enjoyed a share price boost include Deep Yellow, up almost 20 per cent for the week, and Nexgen Energy, up almost 2 per cent for the week.