Commodities: Uranium
Kazatomprom is the world’s largest uranium miner with its primary listing in London, plus a secondary listing on the Astana International Exchange (AIX) in Kazakhstan. Their recent 1H26 result was mixed at the headline level but constructive for the broader uranium story.
If you were to build a portfolio of 5 ASX resources stocks (across base metals, precious metals and energy) what would be your highest conviction picks right now and why. Can be large cap and small caps.
I note with interest in your Q&A, there is often an interest in a uranium stock like Paladin. There is also Cameco in your International portfolio.
As I understand it, your thesis about a very supportive (though volatile) position with uranium is;
Large supply side shortfall after many years in doldrums,
Strong demand in China & India for energy,
Strong growth in AI energy needs, particularly low emissions.
However while there has been price growth over 2-3 years, shares and uranium spot prices have not managed to fully and consistently grow their values. (Sure they’re better but not great).
Is there another element to the shortage of supply side story? eg are there uranium mines mothballed or ready to produce that will force prices down. Does the ‘green’ lobby still strongly say that nuclear is bad theory?
Cameco delivered a weaker-than-expected second quarter update on Friday, with earnings and revenue missing forecasts as uranium production was disrupted by difficult spring road conditions in northern Saskatchewan and earnings from Westinghouse fell sharply.
Europe’s electricity system is under mounting pressure as extreme heat disrupts nuclear and hydroelectric generation, with record heat-related outages at France’s nuclear fleet, falling river levels threatening Hungary’s only nuclear plant, and drought reducing hydro output across the Alps and Nordic region. The situation has been exacerbated by higher natural gas and coal prices following the US-Iran conflict, raising the risk of persistently elevated power prices as France loses record nuclear output and Norway’s hydro reservoirs replenish at their slowest pace in two decades ahead of winter – nuclear currently satisfies over 20% of EU electricity generation.
Hi James and Team
As always thanks for your in depth weekly insights, love the read.
Uranium has experienced a volatile three-year journey which is shown on the chart below. The nuclear material has moved through three distinct phases over the past three years: a powerful rally driven by the nuclear renaissance, AI-related power demand and supply disruptions, a sharp correction as speculative excess unwound, and a recovery supported by renewed energy security concerns and structural demand from AI and nuclear power. While prices have eased from the January 2026 peak, the long-term demand outlook continues to provide a solid floor.
Well, I’ve held onto Lotus Resources through the troubles and turmoil, much to my chagrin. Is this new – or should I say, next – entitlement offer at $0.22 cents just throwing good money after bad?
PDN +6.66%: completed the ramp-up of the Langer Heinrich uranium mine during FY26, with production reaching the upper end of revised guidance and sales accelerating strongly through the June quarter.
