• Large and mid cap miners lift as material sector rises 0.88%
  • Uranium players surge as yellowcake spot prices lift to around decade highs
  • WNA thinks demand for uranium for nuclear utilities could almost double by 2040

Fortescue Metals Group (ASX:FMG) shares surged 3.06% this morning with Rio Tinto (ASX:RIO), coal miners Whitehaven Coal (ASX:WHC), New Hope Corp (ASX:NHC) and Yancoal Australia (ASX:YAL) not far behind as well as rare earths monster Lynas (ASX:LYC) in a broad rally for the materials and energy sectors, up 0.88% and 0.57% respectively.

But the real gains are being made in a more obscure part of the market, with the strongest moves witnessed across the expanse of the ASX uranium sector.

What’s behind it all?

Uranium prices have moved to roughly decade highs, lifting around 5% after a steady run that has seen it be the only commodity on our Up, Up, Down, Down list to be a winner in every month since April.

According to price monitor Numerco, U3O8 – or yellowcake – is trading at US$62.25/lb.

That is the highest spot price in a decade aside from a fleeting moment, not longer than the Trinity test famously revisited in 2023 movie of the moment Oppenheimer, when the fallout Russia’s invasion of Ukraine sent uranium prices higher on supply concerns.

Those fears have lingered. Russia is a major supplier of enriched uranium and the US is keen to secure sources outside of that market for a uranium fleet seeing an increasing number of life extensions. Cameco’s CEO Tim Gitzel and CFO Grant Isaac have increasingly  warned of a bifurcated market that could see two supply chains — Russian and ex-Russian – emerge.

But demand projections are also fuelling the nuclear interest in uranium stocks.

As detailed on this site today, the World Nuclear Association in its reference scenario, delivered in an updated Nuclear Fuel Report last week, said uranium demand from utilities would nearly double by 2040.

At the same time supply is expected to crater, leading experts to assume higher incentive prices will be required to bring more uranium to market, especially with uncertainties like a recent coup in Niger — supplier of 5% of global yellowcake production and around 24% of the uranium oxide exported to Europe.


Ground Breakers share prices today


Who is moving today?

Among the uranium players seeing a massive shockwave of interest today are the Australian market’s leading players.

Boss Energy (ASX:BOE), which is currently looking to restart the Honeymoon mine in South Australia, was up 8.56% to $4.32.

Up 112.81% YTD, the company is now a $1.52 billion stock and a 6070% gainer in the past five years.

$2.8 billion capped Paladin Energy (ASX:PDN) rose 4.47% this morning to 93.5c while 92 Energy (ASX:92E) recovered much of the ground lost in a disappointing exploration update on its Gemini discovery in the Athabasca Basin, rising 18.87%.

John Borshoff’s $800 million capped Deep Yellow (ASX:DYL), owner of the Tumas project in Namibia and Mulga Rock resource in WA, was up 9.5%, while Peninsula Energy (ASX:PEN) gained 13.64% despite having to recently rejig plans for the reopening of its Lance ISR project in Wyoming.

C$4 billion Canadian dual lister Nexgen (ASX:NXG) was up 5.5%, while both Lotus Resources and A-Cap Energy (ASX:ACB) were big gainers ahead of the merger to consolidate two significant southern African resources at Kayelekera in Malawi and Letlhakane in Botswana into one company.


Uranium movers share prices today