The top 5 ASX uranium stocks to watch

ASX-listed uranium stocks could emerge as solid investment picks if nuclear power becomes a publicly acceptable alternative to the fossil fuels that drive climate change. 

Nuclear energy has long received a bad rap due to concerns about its potentially disastrous impact on the environment, as well as the ability for its raw materials to be used in weapons of mass destruction. 

Public acceptance of nuclear energy could be on track to change, however, particularly amidst mounting concern over the adverse impacts of climate change. 

Advocates of nuclear power point to it as a safe and effective form of clean energy when properly deployed using the latest modern technologies. Nuclear power has the advantage of being available under all weather conditions, unlike solar or wind power, whose inconsistent reliability requires large-scale storage solutions. 

In the United States, nuclear energy is currently the largest source of clean power and accounts for more than half of the country’s emissions-free electricity. It generates almost 800 million kilowatt hours of electricity each year, cutting down on over 470 million metric tons of carbon emissions. 

Should nuclear power emerge as a publicly acceptable form of clean energy, this will provide a major boost to uranium stocks involved in the production and processing of the sector’s critical raw materials. 

Australian investors seeking to capitalise upon the potential rise of nuclear power can do so via a number of uranium stocks listed on the ASX. 

Here is a list of five of the top ASX-listed uranium stocks to watch as of October 2023:

1. Paladin Energy (ASX: PDN)

2. Boss Energy (ASX: BOE)

3. Deep Yellow (ASX: DYL)

4. Bannerman Energy (ASX: BMN)

5. Lotus Resources (ASX: LOT)

1. Paladin Energy (ASX:PDN) 

Perth-headquartered Paladin Energy holds a 75% stake in Namibia's Langer Heinrich uranium mine, which is considered to be a globally significant source of uranium. The asset has already produced over 40 million pounds of the uranium compound triuranium octoxide over the past decade and is on track to produce more than 76 million pounds in future. 

Paladin put operations at Langer Heinrich on care and maintenance in May 2018, during a period of low prices for uranium. The company says it is now ready to resume production within the right uranium pricing environment. 

2. Boss Energy (ASX: BOE)

BOE's flagship project is Honeymoon in South Australia, which it acquired in December 2015. The company has already obtained licenses for the production, storage and export of uranium at Honeymoon.

According to BOE's driling results released in August of this year, Honeymoon's Gould's Dam deposit is host to around 25 million pounds of U3O8.

3. Deep Yellow (ASX:DYL)

Uranium explorer Deep Yellow has accumulated a diverse portfolio of projects as part of its dual-pillar strategy to establish a multi-mine company with production of more than 10+Mlb per annum. 

This portfolio encompasses exploration, early-stage and advanced-stage uranium projects across a range of geographic areas, including Omahola and Tumas in Namibia, Mulga Rock in Western Australia and Alligator in the Northern Territory. 

Deep Yellow claims to be the only ASX-listed company with two advanced projects in development – Tumas and Mulga Rock. 

4. Bannerman Energy (ASX: BMN)

Bannerman’s flagship asset is the Etango Project in the Erongo Region of Namibia, whose tenements possess a globally large-scale uranium resource. 

According to Bannerman, the Etango Uranium Project possesses 207 Mlbs of contained triuranium octoxide, making it one of the world’s largest untapped uranium resources. 

In August 2021, Bannerman completed a Pre-Feasibility Study on Etango-8 confirming that the project is strongly amenable to development in both technical and economic terms. 

In August 2022 BMN submitted an application for its mining license in Namibia, and expects to make a positive final investment decision by the first half of next year. Construction on the Etango-8 project is expected to be complete within a three year period.

5. Lotus Resources (ASX: LOT)

Perth-headquartered Lotus holds an 85% stake in the Kayelekera uranium mine in Malawi, which it acquired from Paladin Energy in 2020. The Malawi government holds the remaining 15% stake in the project.

Kayelekera has been under care and maintenance for nearly a decade due to a protracted slump in uranium prices. In August 2022, however, LOT released a restart definitive feasibility study which found that Kayelekera could commence production in 2024 or 2025 as a low-cost operation.

If production recommences on schedule, Kayelekera will have a mine life of 10 years, during which it is expected to produce 19.3 million pounds of uranium.

In July, LOT announced plans to merge with A-Cap (ASX: ACB), another Australian uranium miner with projects in Africa.

How to buy or invest in uranium stocks on the ASX

You can gain exposure to ASX-listed uranium stocks via two ways: either through share trading or derivatives trading. Share trading means that you take direct ownership of the stock, meaning you could potentially profit if the share price increases in value or if the company decides to pay a dividend.

By comparison to owning shares outright, derivatives trading – such as CFD trading – allows you to speculate on the price movement of a company’s shares without actually taking ownership of them. CFD trading may prove attractive to some investors for a number of reasons, including the flexibility to trade stocks long and short, the ease with which it allows to hedge, as well as the ability to gain greater exposure to an asset through leverage.

Follow the simple steps below to start investing or trading uranium stocks:

Investing in uranium stocks

• Create or log in to your share trading account and go to our trading platform

• Search for the company you wish to invest in

• Select ‘buy’ in the deal ticket to open your investment position

• Choose the number of shares you want to buy

• Confirm your purchase and monitor your investment

Trading uranium shares

• Create or log in to your trading account and go to our trading platform

• Decide whether CFD trading is right for you

• Search for the company you wish to trade

• Choose your position size and select ‘buy’

• Confirm your trade and monitor your position