Commodities: Uranium
PDN bounced +5.5% on Monday, but it remained significantly below its May peak. The Paladin share price has plunged ~48% in the past month due to commissioning issues at the Langer Heinrich Uranium mine.
BOE surged +7.3% on Monday, but after correcting over 60% through 2024, more is required to help suffering shareholders. BOE operates the Honeymoon project in South Australia, and having restarted operations in 2024, they are ramping up to full production of 2.4Mlb in FY27.
The ASX uranium miners have proven a minefield for local investors. Paladin and Peninsula both announced disappointing production downgrades in the ramp-up period of their respective projects, and the stocks were slammed accordingly.
CCJ released 3Q24 results last week that showed strong operational performance, though it was a weaker quarter from an earnings and cash flow perspective. Interestingly, they upgraded production guidance at McArthur River/Key Lake from 18Mlb (100% basis) to 19Mlb while they remain on track for 18Mlb (100% basis) from Cigar Lak
PDN -24%: The Uranium miner is getting hit today on back of some production issues relating to lower than expected grade from existing stockpiles and a lack of water. While we are at maximum weighting in two portfolio’s (~4%), we view this sell-off as very excessive for what has been announced.
Enjoy reading your Insights guys, thanks.
PDN has endured a tough few weeks after releasing a very disappointing September quarterly update. Lower production/sales volumes, higher costs, and frustrating rhetoric around the proposed Fission acquisition weighed on the stock.
The world’s largest uranium stock, Cameco (CCJ US), powered to fresh all-time highs last week. While the market is sticking with the big “safe” stocks so far, we believe other names will follow suit to greater or lesser degrees.
BOE has underperformed its peers both on the way down and in the recent recovery, however, we view BOE as a lower risk, lower beta way of investing in the Uranium sector. They operate the Honeymoon project in South Australia which we like, and having restarted operations in 2024, they are ramping up to full production of 2.4Mlb in FY27.
Hi Team,
