Uranium miners lead ASX 200 amid demand growth
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The news: Uranium miners were leading the ASX 200 in afternoon trading as demand for the energy resource lifted following the launch of a new raise for the Sprott Physical Uranium Trust, while the wider energy sector rallied on oil supply fears amid conflict between Iran and Israel.
The numbers: Deep Yellow was leading the ASX 200 at 3:35pm AEST. Its share price had lifted 21% to $1.60.
Boss Energy was the next biggest gainer with a share price increase of 16.4% to $4.30, followed by Paladin Energy, which saw a share price increase of 15.4% to $0.97.
The wider energy sector was up 5.7%.
The context: Although shares in nuclear miners lifted on open, it was sustained in the afternoon following an announcement by the world’s largest physical uranium fund, the Sprott Physical Uranium Trust, that it would raise an additional USD100 million ($154 million) to invest in the energy commodity.
Tribeca’s Nuclear Energy Opportunities Fund portfolio manager Guy Keller told the Australian Financial Review that the additional investment “will drive the spot price significantly higher from here... I would not be surprised to see it trading in the mid-$US80s in short order”.
The commodity currently has a spot price around USD70 per ounce.
The sources: Sprott Physical Uranium Trust media release, AFR
