Boss Energy, Paladin lead uranium rally as Canada tariffs loom
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More news: Uranium miners Boss Energy, Paladin Energy and Deep Yellow were the three best performing stocks across the ASX 200 by 1:45pm AEDT.
Shares in Boss Energy (12.1%), Paladin (10.8%) and Deep Yellow (5.8%) all surged as the energy sector edged down 0.2% and the ASX 200 index rose 0.4%.
Paladin shares were boosted after the uranium miner reaffirmed its full-year production guidance, with Citi reiterating its 'buy' rating on the stock.
The rally comes as US President Donald Trump pledged this week to impose 25% tariffs on Canada which is racing to be the world's biggest uranium supplier. It is also the top foreign supplier of uranium to the US.
Paladin shares gain as uranium production tracks guidance
More news: Paladin Energy shares jumped in morning trade on the ASX after the uranium miner reaffirmed its full-year production guidance.
Paladin shares were up 5.3% to $8.79 by 10:40am AEDT, extending gains of more than 15% since the start of the month.
Citi said the result was boosted by an increase in plant recovery rates at Paladin's Langer Heinrich Mine during the December quarter, rising to 88% from 69% in the previous quarter, following improvements implemented during a planned 12-day shutdown in November.
Citi has a 'buy' rating on the stock with a price target of $13.50.
Paladin reaffirms guidance as Langer Heinrich Mine continues ramp up
The news: Uranium producer Paladin Energy reiterated its full-year production guidance, which was revised down in November, after its Langer Heinrich Mine (LHM) in Namibia recorded its highest monthly output since production restarted early last year.
The numbers: Paladin produced 308,604 pounds of uranium in December, the largest monthly haul at the LHM since commercial production restarted in March 2024.
The company said production for the quarter was in line with its expectations and the LHM remains on track to meet the revised production guidance of between 3 million and 3.6 million pounds for FY25.
Production for the December quarter lowered to 638,409 in the previous quarter to 639,679, following a planned plant shutdown in November.
The context: During the quarter, Paladin completed its $1.27 billion acquisition of Canadian explorer Fission Uranium Corp. The transaction completed on 24 December and Paladin shares listed on the Toronto Stock Exchange on 27 December.
What they said: "It was pleasing to see benefits from the planned plant shutdown and other operational initiatives positively impact production from the LHM," said Paladin CEO Ian Purdy.
"We continue to de-risk the operation, but recognise the LHM is still ramping up to full production and patience is required as our local team steadily achieves their goals."
The sources: ASX announcement, FT
