3 ASX Nuclear Stocks Set To Explode in all the Right Ways

Richard Hemming

Our edtior Richard Hemming and Resources Analyst Peter chilton have uncovered three nuclear stocks that truely are Under the Radar. In this video they go into detail, giving you advice on what to do next.

In addition, the analysts give you answers to these top nuclear questions that are subscribers ask us about. 

  • What are the best 4 ASX nuclear stocks to buy?
  • What do you need to know about nuclear?
  • Have anything changed in the industry after Fukushima?
  • The uranium price: What does it mean for stocks now and in the future?
     

Click to watch our analysts discuss these 3 ASX nuclear stocks.

 

What are the 3 ASX nuclear stocks?

Our analysts have uncovered 3 standout nuclear stocks to buy now which should benefit from increasing demand for nuclear energy and diminishing supply of uranium oxide.

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Why are these stocks set to boom?

Uranium spot prices reacted positively to increased demand from uranium commodity funds and developers in the second half of the March quarter with a 12% price rise from US$27 a pound to US$30.50. This led to a rally in uranium stocks including our favourite Paladin Energy (PDN), as well as Boss Energy (BOE), Bannerman Resources (BMN) and offshore listed stocks such as Cameco Corp (CCJ:NYSE). Subsequently, prices slipped to US$29, but quickly recovered to almost US$30.50 by mid-May

Paladin Energy (ASX: PDN)

Sector: Nuclear energy
Current Price: $0.49
Market Cap: $1.25BN
Dividend Yield: 0%
Net Cash: US$53.4M (A$68.5M) 

Paladin is debt free. Its existing Langer Heinrich mine can be restarted and ramped up to full production to a much shorter time frame than the greenfield projects of most of its competitors. Further, the required pre-production capital expenditure is relatively low compared with a greenfield project and likely to be financed largely by debt rather than a large dilutive equity raising. With an historic production track record, Paladin’s project has less risk than developing the resources of a project that has never been mined before.

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Boss Energy (ASX: BOE)

Sector: Uranium mining
Current Price: $0.165
Market Cap: $353.1M
Dividend Yield: 0%
Net Cash: $170.3M

The uranium market is in deficit with demand exceeding supply. However, drawdowns from inventories are making up the difference. With limited inventories and uranium demand increasing because of new power plants, an inflection point is expected in the 2024/25 period with higher prices. While there are a range of uranium project developers, Boss has the advantage that it is reopening an existing proven plant that can be fast tracked to take advantage of higher prices when they occur, although the timing of this is highly uncertain – hence this is a high-risk investment.

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Bannerman Resources (ASX: BMN)

Sector: Uranium mining
Current Price: $0.165
Market Cap: $184.3M
Dividend Yield: 0%
Net Cash: $88.2M

Sequential news flow and project milestones are expected to lead to share price re-ratings as production approaches. For investors seeking exposure to a uranium developer, Bannerman stands out because of its geology, location and the background of its management and its board. The project is scalable to provide future growth, with high exploration potential. On the flip side, it is dangerous to rely on the consensus that demand will exceed supply in 2024/25, hence this is a high risk investment

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About the Author

Richard Hemming

Richard Hemming (r.hemming@undertheradarreport.com.au) is an independent analyst who edits www.undertheradarreport.com.au, which provides investment opportunities in Small Caps that you won’t get anywhere else.

Under the Radar Report is licensed to give general financial advice only (AFSL: 409518). The author does not own shares in any of the stocks mentioned.

Under the Radar Report is licensed to give general financial advice only (ASFL: 409518). The author does not own shares in any of the stocks mentioned.

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