Uranium has thrived in recent years, gaining traction in 2020 and 2021 while most of the world was at a standstill due to COVID-19. Prices for the energy fuel have continued to climb since then, sparking optimism for the future.
Uranium reached its highest level in nearly two decades when values surpassed the US$100 level in February. Since then, prices have contracted, but remain historically high. As of mid-June, values were holding in the US$85.50 range.
Market cap: AU$4.04 billion; share price: AU$13.70
Based out of Western Australia, Paladin Energy’s goal is to be a reliable supplier of clean energy for the future. Its main focus is uranium mining, and it currently has one active mine: Langer Heinrich in Namibia, of which it owns 75 percent. The company also has an exploration portfolio that spans both Canada and Australia.
Market cap: AU$1.68 billion; share price: AU$4.19
Boss Energy is ramping up production at both its Honeymoon and Alta Mesa uranium assets.
Located in South Australia, the Honeymoon mine is licenced and permitted for the production, storage and export of uranium. With a strategically designed processing plant, the property has a small footprint and upholds the Heritage and Native Title mining agreements on the land. Since it acquired Honeymoon in December 2015, Boss Energy has developed the project’s JORC resource from 16.6 million pounds to 71.6 million pounds.
With both Honeymoon and Alta Mesa ramping up, the company aims to produce 3 million pounds of uranium annually.
Market cap: AU$1.38 billion; share price: AU$1.48
Deep Yellow is committed to developing a high-output, cost-effective, tier-one uranium company. Its portfolio consists of six assets over two countries, Namibia and Australia. Its Namibian projects are the Tumas and Omahola projects, as well as the Nova and Yellow Dune joint ventures. In Australia, the company has its Mulga Rock and Alligator River projects.
Market cap: AU$668.39 million; share price: AU$0.36
Lotus Resources’ flagship asset is the Kayelekera uranium mine in Malawi, which it acquired from Paladin Energy in 2020. Lotus currently has 85 percent ownership of the project, and the remaining 15 percent is owned by the Malawi government. The mine has been on care and maintenance since 2014 due to a prolonged lull in uranium prices.
Market cap: AU$577.73 million; share price: AU$3.86
Bannerman Energy is a uranium development company headquartered in Perth. Its primary focus is its Etango uranium project in Namibia, for which it has developed a base-case development plan using an 8 million tonne per year throughput rate; the company has dubbed this Etango-8. Etango is located on one of the world’s largest untapped uranium resources within Namibia’s established uranium-mining district, and the Etango-8 mine life would be 15 years.
There are currently two uranium-focused exchange-traded funds (ETFs) listed on the ASX.
Securities Disclosure: Melissa Pistilli and Georgia Williams hold no direct investment interest in any company mentioned in this article.
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