Commodities: Uranium
We have covered BOE at length through 2025 and with the stock up 78% in 2025 the hardest factor for investors is where to buy this volatile beast – we believe that “shorts” could be in real trouble here with over 18% of the stock short sold, the swords may need sharpening before the falls occur!
We have also covered PDN at length through 2025 although this sector and market laggard hasn’t been listening with the stock down ~4% year-to-date. Again, we can see a huge short squeeze in the offing with well over 15% of PDN held short, to put things into perspective this could take two months to cover.
Does MM consider ESG when investing? I’ve noticed a very high number of coal stocks being recommended regularly by MM over the past year, which is disappointing in this day and age. While I concede it’s challenging to completely eliminate fossil fuel emissions from investment decisions, a hard line can easily be drawn on coal companies, and in particular Woodside which has a terrible record on emissions and blatant lobbying against any environment regulation. For clarity, I do invest in mining companies recognising industrial production relies on mining for metals, but energy production using coal is very distinct. I’d like to see much less emphasis on pure play coal in MM’s analysis FWIW.
We looked at Paladin (PDN) earlier in the week, targeting 25-30% upside in the coming months. As subscribers know, we remain bullish on the uranium thematic, with Boss Energy (BOE) the only local name which has delivered for investors through 2025.
Monday saw the Australian uranium miners latch onto Trumps very bullish rhetoric towards nuclear energy, as he looks to accelerate the construction of nuclear power plants. At MM, we’ve steadfastly stuck with our positive outlook towards the uranium sector, which has paid off with our international holdings, but local names have endured a shocking year.
Uranium- and nuclear-themed ETFs spiked sharply higher on Friday after President Donald Trump signed an executive order that will overhaul the Nuclear Regulatory Commission, an independent agency that regulates the nation’s fleet of nuclear reactors. Policy-driven optimism sent nuclear-themed ETFs, from reactor developers to uranium miners, soaring with market heavyweight Cameco Corp (CCJ US), which MM holds in its International Equities Portfolio, up 11%.
This $US25bn US uranium stock puts the ASX sector to shame. It’s about to make new highs while local names languish in ugly bear markets—at least for now. Following President Trump’s commentary, we believe the US is going to push ever harder into nuclear power, driving up stocks like CCJ in the process.
Dear James, Shawn and team,
The BetaShares URNM ETF is made up of some major global players and the underlying commodity, including: Cameco 15.7%, NAC Kazatomprom 12.7%, Sprott Physical Uranium 10.5%, Boss Energy 5.9%, and NexGen 5%.
Canadian-based heavyweight uranium producer CCJ was trading within 19% of its all-time high overnight before drifting into the close, a dream position for the local peers. The pullback from its highs last night suggests some consolidation around $US50 is likely after its 45% recovery.
