Uranium Shares Going Nuclear

After a strong run in the US markets, ASX uranium shares followed suit posting significant gains for the day.

This came after Joe Biden announced he is seeking support on a $4.3 billion plan to buy uranium from producers in order to ween off its reliance on Russian exports.

Aussie companies that are benefiting from this include Paladin Energy Ltd, Bannerman Energy Ltd, Boss Energy Ltd and Peninsula Energy Ltd (ASX: PEN).

Peninsula shares surged 20%, Paladin shares soared almost 14%, Bannerman Energy shares rose almost 10% and Boss Energy ended the day up almost 12%.

Uranium shares are followed the trend seen in global markets overnight. The Global X Uranium Exchange Traded Fund jumped 5.98% in US markets. US uranium producer Energy Fuels Inc leapt 12.94% and Canadian headquartered Uranium giant Cameco Corp leapt 8%.

Investors appear to be buying up uranium shares following some positive news out of the United States. The Biden administration is seeking Congress support for a $4.3 billion plan to buy enriched uranium from domestic producers, Bloomberg reported. A source told the publication the aim is to halt reliance on Russian imports of the nuclear fuel.

ASX listed Peninsula owns the Lance Uranium Project in the state of Wyoming, in the United States. Paladin Energy is working on the Michelin project, nearby in Canada.

Domesitcally, Opposition leader Peter Dutton has reignited the nuclear energy debate, saying he is “not afraid to have a discussion on nuclear”. Uranium is used as the fuel in nuclear power plants. In an interview with ABC Radio National, Dutton stated:

“If we want to have legitimate emission reductions, if we want to lower electricity prices, then that’s exactly the path that President Macron has embarked on in France, it’s what Prime Minister Johnson is talking about in the United Kingdom…”