Commodities: Uranium
PDN has struggled operationally over the last year, but it delivered better performance in their Q3 update; we can see the miner beating expectations and producing ~2.8 million lbs of uranium in FY25.
The last few weeks have seen uranium stocks outperform gold for the first time in over a year. We have touched on the sector in the last couple of reports, highlighting moves on the macro geo-political level and comments by the new US president.
Nuclear energy has returned to favour with Trump, and many global governments focused on energy security and decarbonisation. At MM, we believe it is inconceivable that global “net-zero” carbon targets can be met without nuclear being a significant part of the solution.
The New York Times reported on Friday that U.S. President Donald Trump’s administration is considering several executive orders to expedite the construction of nuclear power plants. By definition, higher demand will create a tailwind for uranium prices and stocks. We believe Trump will pull this lever as he looks to reduce energy prices, one of his big promises on the campaign trail – remember “Drill baby drill”.
Hi James and Team
Your current view on James Hardie and how long u think before it might recover back to $50+.
Would you recommend the URNM ETF at current prices to get a wide spread of uranium exposure as opposed to adding to existing PDN and BOE holdings.
regards
Debbie
Market heavyweight PDN has been kinder to the shorts, declining over 20% so far in 2025 as the company has consistently disappointed operationally, including withdrawing guidance last month following heavy rain in Namibia.
It’s not been a good year for the shorts in BOE with the stock up +30% so far in 2025, the traders have sold into the bounce, but they must be getting uncomfortable. On Tuesday, it pleased the market with its quarterly update from its South Australian Honeymoon facility.
Global uranium stocks have struggled in recent months, although Canadian-based heavyweight Cameco was trading at an all-time high in December, when local stocks were already a year into their demise.
DYL has taken the middle ground in 2025, advancing less than 1%, a performance in-between BOE and PDN. During the first half of FY25, Deep Yellow focused on advancing its Tumas Project in Namibia.
PDN +24.62%: Released a strong quarterly today highlighting the uranium producer is back on track with production, achieving its highest run-rate of production to date.
