Commodities: Uranium
Hi Market Matters Team,
Global Uranium stocks tested fresh 2025 highs last week, but our attempt to buy Paladin (PDN) fell short. However, after a 1% dip by the URNM ETF in the US on Friday night, we’re keen to garner exposure to the uranium sector into likely early weakness this week.
Lastly, uranium, which we’ve also discussed at length through 2025, but as the sector gathers momentum on the upside today, it’s an ideal time to update our opinion on a related ETF. We’ve remained bullish towards nuclear power over the year to mixed results, but with AI energy demand set to surge exponentially over the coming years, we remain committed to our positive outlook on this clean energy, which is being adopted by many countries outside of Australia.
The URNM ETF has almost doubled from its April low, outperforming the ASX basket of uranium stocks. This ETF holds a broad-based 41 stocks from Cameco, to NAC Kazatomprom, to Sprott Physical Uranium as it tracks a global basket of companies in the mining, exploration, development and production of uranium for 0.69% pa. It tracks the North Shore Uranium Mining Index very well, with both up +40% year-to-date.
Last week, Paladin tapped the market with a A$300m underwritten equity raise (plus a A$20m SPP) at A$7.25/sh, representing an ~8% discount to the 5-day VWAP ahead of the announcement. The share price has performed well since, with the available SPP now priced at a ~20% discount to last, making it very attractive for investors to try and pick additional shares, up to 30k.
Meta Platforms Inc. is moving to break into the wholesale power-trading business to better manage the massive electricity needs of its data centres (DCs). The company, which owns Facebook, filed an application with US regulators this week seeking authorisation to do so. Buying electricity has become an increasingly urgent challenge for technology companies, including Meta, Microsoft Corp. and Alphabet Inc.’s Google.
Global uranium stocks soared over the last 48 hours after the US Energy Secretary said America should boost its strategic uranium stockpile to wean off Russian supply. Locally Deep Yellow (DYL) surged the most in 3 months, closing up +9.2% at its highest level in 13 years, while Boss Energy (BOE) came in second on the main board, ending the day up +7.1%.
Uranium miner Paladin Energy (PDN) has gone cap in hand to the market overnight, although not a huge raise for the $3.1bn miner. Macquarie Capital were approaching fund managers for the $300mn equity injection for PDN on Monday evening.
Uranium demand has risen in 2025 as countries accelerate the shift to nuclear power to secure low-carbon baseload energy, with China, India, and Europe expanding reactor fleets and the U.S. extending the life of existing plants.
After a trading halt on 17 April, PEN is trading again after announcing an equity raise @30c on 22 Aug. The institutional offer is now complete and the retail offer at 1:1 closes on Tuesday 29 Sept. I note from your comments in Q&A last week that MM has no interest in PEN, however, if you held the stock, would you consider participating. It has been trading 10 to 20% above the offer price early in the week. My concern is the discount to the last traded price before the holt is >50%.
