CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

The top 5 ASX uranium stocks to watch

With concerns over climate change mounting, nuclear power could soon emerge as a widely accepted form of clean energy. Here are five of the top ASX-listed uranium stocks to watch.

Source: Bloomberg

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 best ASX-listed uranium stocks:

1. Paladin Energy

2. Boss Energy

3. Deep Yellow

4. Bannerman Energy

5. Lotus Resources

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) 

Perth-based Boss Energy is the 100% owner of the Honeymoon Uranium Project in South Australia, which has the potential to produce up to 2.4 million pounds of triuranium octoxide per annum over a Life of Mine (LOM) of plus-10 years. 

A 2021 feasibility study found that Honeymoon could enjoy ‘extremely robust margins’, particularly given that contract prices for uranium are now around the high US$30’s per pound. 

Honeymoon is already home to a fully permitted uranium mine equipped with $170 million of established infrastructure and a plant in good condition. 

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. 

5. Lotus Resources (ASX: LOT) 

The flagship asset for Perth-headquartered Lotus Resources is the Kayelekera Uranium Project in the African nation of Malawi. 

According to Lotus, Kayelekera is the world’s fourth largest uranium asset globally in terms of historical annual production, producing 11 Mlbs of triuranium octoxide equivalent over the five years from 2009 to 2014. 

The project has since been shut down and placed on care and maintenance to preserve its longevity amidst low prices in the uranium market. 

A Definitive Feasibility Study released by Lotus in August 2022 said that the project is capable of rapidly recommencing production should market conditions improve. Kayelekera retains a mining license and environmental permits, as well as a skilled team of local personnel who have worked at the asset previously. 

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

This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

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