With uranium emerging as an acceptable alternative to fossil fuels, the demand for the chemical element is expected to grow significantly. In such a scenario, ASX-listed uranium stocks could provide investors with impressive returns.
Uranium prices have thrived since the COVID-19 pandemic, hitting $64.50 per pound in mid-April and $90.27 by the end of 2023. Though the price has contracted since surpassing the $100 level in February 2024, it still hovers around $80.
However, experts predict a bright outlook for uranium, considering the limited supply and strong demand ahead. With high hopes for the commodity, investors can bet on ASX uranium stocks to capitalize on the potential rise in the uranium price.
According to our analysis, Paladin Energy is likely to be the best bet for hopeful investors looking to cash in on uranium demand. However, we have identified seven of the best Australian uranium stocks in total—this article will explore each in depth.
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Best Australian Uranium companies to invest in now
The following are the best Australian uranium stocks to invest now:
1. Paladin Energy: A uranium mining company with operations in Australia and Namibia. The company currently has one active mine – Langer Heinrich in Namibia – of which it owns 75%.
2. Boss Energy: Engages in minerals exploration with a focus on the Honeymoon Uranium Project in South Australia. Boss Energy has already acquired licenses for the production, storage and export of uranium at Honeymoon.
3.Silex Systems: A technology company with a focus on providing innovative SILEX laser-based enrichment technology for uranium production and enrichment. The stock has given a return of more than 900% in the last five years.
4. Bannerman Energy: A uranium development company with a focus on the Etango uranium project in Namibia. Bannerman claims Etango could be the world’s largest untapped uranium resources.
5. Deep Yellow: The company is committed to becoming a high-output, cost-effective uranium producer. Deep Yellow has adopted a dual-pillar growth strategy focusing on organic and inorganic growth. Investors, it seems, support the company’s strategy as the stock is up significantly YTD.
6. Lotus Resources: A leading uranium developer with significant scale and resources. The company is incurring losses now, but analysts expect it to break even in the next two years.
7. Predictive Discovery: A mineral exploration company with a focus on gold and uranium, Predictive Discovery currently has many key projects. The quality of these projects, according to many analysts, makes it a potential takeover option.
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An in-depth look at the top Australian Uranium stocks
Now that you know which the best Australian uranium stocks are, let’s take a closer look at what makes them the best:
1. Paladin Energy (PDN): Average annualized return of 97%
Paladin Energy (ASX:PDN) is a uranium mining company with operations in Australia and Namibia, as well as projects in Canada, Western Australia, and Queensland. With a focus on uranium mining, the company aims to be a reliable supplier of clean energy globally.
Paladin Energy briefly halted its operations in 2018 owing to low uranium prices but restarted operations with Langer Heinrich uranium mine in Namibia in 2022. The Australian company restarted commercial uranium production in March 2024, meeting its scheduled timeline and capital cost estimate.
Paladin is consistently working to up its operations, having recently inked an acquisition deal with Fission Uranium. The acquisition, which is awaiting a court decision, would create one of the biggest pure-play global uranium companies with combined mineral resources of 544 million pounds of uranium.
Presently, the company is working to boost its output and inventory to meet future orders. The stock is up more than 900% in the last five years and over 17% YTD. The stock also has a 52-week high of $17.98, and is presently trading around $11.55. If the acquisition deal goes through, Paladin will be one of the best Australian uranium stocks available.
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2. Boss Energy (BOE): Average annualized return of 3.62%
Founded in 2005 and headquartered in Subiaco, Australia, Boss Energy (ASX: BOE) deals in the exploration of gold and uranium projects. Presently, the Honeymoon Uranium Project in South Australia is Boss Energy’s primary project.
Boss Energy acquired the Honeymoon project in 2015, and since then has developed the project’s resources from 16.6 million pounds to 71.6 million pounds. The Honeymoon mine is licensed to produce, store, and export uranium.
In April this year, the company announced the production of the mine’s first drum of uranium as part of the commissioning process. Additionally, earlier this year, the energy company commenced production at the Alta Mesa central processing uranium plant and wellfields in South Texas. Boss Energy owns 30% of Alta Mesa, a high-grade uranium project in Texas.
Boss Energy also recently announced robust drilling results at Gould’s Dam, which is a satellite deposit located very close to the Honeymoon mine. The company plans to use the deposit to boost production at the Honeymoon mine.
Moreover, the company in its last quarterly report noted that it is on track to meet its production goals for the fiscal year 2025. For the full year ended June 30, 2024, the company reported a net income of AUD 44.59 million compared to AUD 12.55 million a year ago.
With plenty of drivers, including measures to boost production, on-track production, and a favorable macro environment, Boss Energy stock looks well poised to be one of the best Australian Uranium stocks available.
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3. Silex Systems (SLX): Average annualized return of 11%
Founded in 1988 and headquartered in Sydney, Australia, Silex Systems (ASX:SLX) develops and commercializes laser uranium enrichment technology. The company has been unprofitable for around five years, but is now generating some pre-tax profits from its prior investments.
In addition to profits, the company has witnessed strong revenue growth in the last half-decade. Additionally, the company is now employing much more capital than earlier, suggesting it is working on a number of reinvestment opportunities to help it break into profitability.
Silex, with its state-of-the-art technology, is also well-positioned to leverage the opportunity emerging in the global nuclear energy market.
Moreover, the company’s stock has performed exceptionally well over the past five years, giving a return of almost 1,000%. Though the stock has lost some gains in the last few months, the drop is largely expected after recording such strong gains.
Some potential buyers may feel that they missed Silex Systems’ phenomenal bull run. However, taking into account the company’s recent reinvestment efforts and revenue growth, it wouldn’t be wrong to say that the stock does exhibit upside potential.
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4. Bannerman Energy (BMN): Average annualized return of 8%
Founded in 2005 and headquartered in Perth, Australia, Bannerman Energy (ASX:BMN) deals in the exploration and operation of uranium mining projects. Presently, the company is focusing on its Etango uranium project in Namibia, which is part of one of the world’s largest untapped uranium resources.
Bannerman Energy’s base case development plan for its Etango uranium project is 8 million tonnes per year throughput rate. The life of the Etango-8 mine is estimated to be 15 years. Though a scoping study from Bannerman Energy earlier this year talked of a higher throughput, the company is currently following its base case scenario.
Earlier this year, the company concluded the front-end engineering design and control budget estimate processes for the project. Presently, the company is working on construction activities, as well as marketing and strategic financing for the project.
Lately, some concerns have been raised over the company’s cash burn and that it is left with little cash to fund its operations. To douse such concerns, the company raised AU$85 million in new equity.
Though the stock has dropped significantly in recent months, it has gained almost 500% in the last five years. Moreover, the stock has again started to move up, gaining over 40% in the last 30 days, suggesting investors are showing confidence in the company’s plan for its Etango-8 project.
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5. Deep Yellow (DYL): Average annualized return of 3%
Deep Yellow (ASX:DYL) aims to become a tier-one, low-cost uranium producer with a globally diversified uranium portfolio. Presently, the company has assets in Namibia and Australia. The company is well-positioned to benefit from the rising uranium prices, and could therefore be one of the best uranium stocks on the ASX.
Deep Yellow’s management is focusing on delivering both organic and inorganic growth by advancing the current projects through the production stage – organic growth through the development of the company’s existing asset base and inorganic growth through mergers and acquisitions.
To fund its objectives, Deep Yellow has raised a significant amount of capital lately. The company plans to use the net proceeds to advance its Tumas Project (Namibia) toward production, as well as support further development activities at the Mulga Rock Project (Australia). Both Tumas and Mulga are Deep Yellow’s most advanced assets.
Investors are also optimistic on Deep Yellow’s strategic plans as its stock is up over 25% YTD. The company’s net loss widened for full year 2024, but revenue exceeded analyst estimates. More importantly, the company expects to grow its revenue by about 135% during the next 2 years, making it one of the best ASX uranium stocks available today.
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6. Lotus Resources (LOT): Average annualized return of -16%
Lotus Resources (ASX:LOT) deals in the exploration, evaluation, and development of uranium properties in Australia and Africa. The Kayelekera uranium mine in Malawi is Lotus Resources’ flagship asset, which it acquired from Paladin Energy in 2020.
Earlier this year, the company signed a Mine Development Agreement with the Government of Malawi for 10 years. Additionally, the company last year closed a merger deal with A-Cap Energy, an Australian company with a focus on developing the Letlhakane uranium project in Botswana.
Lotus Resources shares are down 10% YTD, but are up over 12% in the last month, suggesting investors are showing confidence in the company’s recent strategic plans. The company’s loss widened for the full fiscal year, but analysts expect the company to break even in 2025 and report a profit in 2026.
Analysts’ optimism likely emerges from the company’s recent win in securing two uranium offtake arrangements and a binding unsecured loan facility for its Kayelekera uranium project. The agreement is expected to support the sale of at least 1.5 million lbs of uranium produced at the facility.
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7. Predictive Discovery: Average annualized return of -15%
Predictive Discovery (ASX:PDI) is a mineral exploration company with a focus on identifying and developing gold and uranium reserves in West Africa and Australia. Currently, the company has projects in Burkina Faso, Cote d’Ivoire and Guinea. The company largely believes that the West African region is both highly prospective and underexplored.
Predictive Discovery’s stock has experienced a significant return over the past year, gaining over 20%. Smart money is also following the company, and it seems they are optimistic about its future. BlackRock, Inc. and T. Rowe Price Group, Inc. are the second and third largest shareholders in the company, respectively.
Following Predictive Discovery’s last year announcement of a resource upgrade to its Bankan Gold Project in Guinea, many analysts believe it to be a potential takeover target. Perseus Mining Limited is the company’s largest shareholder, and is slowly raising its stake in Predictive Discovery.
Though the company is currently incurring losses, a successful completion of current projects could quickly turn things around. Moreover, if Perseus Mining eventually acquires Predictive Discovery, it may result in massive returns for shareholders and become one of the best Australian uranium stocks available.
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Year-to-date performance of the best Australian uranium stocks
Ticker | Company Name | Performance (YTD) | Invest now |
PDN | Paladin Energy | 17% | Buy with eToro |
BOE | Boss Energy | -19% | Buy with eToro |
SLX | Silex Systems | 5% | Buy with eToro |
BMN | Bannerman Energy | 16% | Buy with eToro |
DYL | Deep Yellow | 25% | Buy with eToro |
LOT | Lotus Resources | -10% | Buy with eToro |
PDI | Predictive Discovery | 19% | Buy with eToro |
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What are the best Australian Uranium stocks?
Australian uranium stocks are companies that are engaged in the mining and extraction of uranium, or in exploring or developing uranium deposits. Considering Australia is home to some of the world’s largest untapped uranium resources, the local uranium industry and stocks are always popular among investors.
Additionally, Australian uranium stocks have key projects in sub-Sahara Africa and West Africa, including in Namibia and Malawi, making them appeal to global investors as well.
Uranium is one of the most precious metals. Though it is mostly known for its use in nuclear weapons, it is also growing popular as an energy metal as it helps create safe, clean power with minimal waste.
With technological advancement making nuclear power cheaper and safer, more countries are considering uranium as a future of clean and sustainable energy. A report from the World Nuclear Association expects the demand for uranium in nuclear reactors to grow to 28% by 2030 and almost double by 2040.
ASX-listed uranium stocks, with years of mining expertise and exposure to some of the largest uranium deposits, are well-positioned to benefit from the potential boom in uranium demand. All such drivers make Australian uranium stocks a good investment option with the potential for above-average returns in the future.
Introduction to uranium
What is uranium?
Uranium is a naturally occurring, radioactive, metallic element with the atomic number 92. Known for its remarkable density, uranium is almost 19 times denser than water, making it one of the heaviest elements found in nature. This dense metal plays a crucial role in the production of nuclear energy, which is harnessed to generate electricity in nuclear power plants. The unique properties of uranium make it indispensable in the realm of nuclear power, where it serves as a key fuel source.
Uranium uses
Uranium has a diverse range of applications that extend beyond its well-known role in nuclear power generation. Here are some of its primary uses:
- Nuclear power generation: Uranium is the primary fuel used in nuclear reactors to produce electricity. Its ability to undergo fission makes it an efficient and powerful energy source for nuclear power plants.
- Nuclear medicine: In the medical field, uranium is used to produce radioisotopes, which are essential for medical imaging and cancer treatment. These radioisotopes help in diagnosing and treating various medical conditions.
- Industrial applications: Uranium finds use in several industrial applications, including the production of radiation shielding and nuclear batteries. Its unique properties make it valuable for specialized industrial processes.
Uranium enrichment
Uranium enrichment is a critical process that increases the concentration of the isotope uranium-235 in uranium ore. Natural uranium contains only a small percentage of uranium-235, which is the isotope capable of sustaining a chain reaction in nuclear reactors. To make uranium suitable for use in nuclear reactors, it must be enriched. This is typically achieved through a process called gaseous diffusion, where uranium hexafluoride gas is forced through a series of semipermeable membranes. The enrichment process ensures that the uranium has a higher concentration of uranium-235, making it effective for use in nuclear reactors.
Uranium mining
Uranium mining is the process of extracting uranium ore from the earth, and Australia is a significant player in this industry. The country boasts several operational uranium mines, contributing substantially to global uranium production. The Australian Government regulates uranium mining with stringent guidelines to ensure the safe and responsible extraction of this valuable resource. These regulations are designed to protect the environment and ensure the safety of workers and surrounding communities. With its rich uranium deposits and robust regulatory framework, Australia continues to be a key contributor to the global uranium market.
Why invest in ASX-listed uranium stocks?
Uranium’s long-term outlook looks very promising, making stocks on the ASX an attractive investment option. The rise in global demand for uranium as countries look to reduce their carbon emissions and greenhouse emissions has pushed metal prices to their highest level in nearly two decades. Though the prices have come down a bit, they still remain historically high.
Tight supply and strong demand make the scenario perfect for ASX uranium stocks as they have years of mining experience and exposure to some of the world’s largest uranium reserves (in and outside Australia).
Many ASX-listed Uranium stocks have already witnessed a strong bull run in the past few years or so. With uranium demand showing no signs of slowing down, such stocks still offer a lot of upside potential to patient investors.
What are the biggest uranium companies in Australia?
Some of the biggest uranium companies in Australia are:
Name | Market Cap | Revenue |
Paladin Energy | AU$3.62 Billion | AU$2.35 Million |
Boss Energy | AU$1.46 Billion | AU$1.93 Million |
Deep Yellow | AU$1.38 Billion | AU$15.95K |
Lotus Resources | AU$500 Million | AU$21.16K |
Bannerman Energy | AU$576.92 Million | AU$1.39 Million |
Predictive Discovery | AU$583.02 Million | AU$170.77K |
Silex Systems | AU$1.02 Billion | AU$11.2 Million |
Pros and cons of investing in Australian Uranium stocks
Australia is a prominent supplier in the global uranium market, but that doesn’t guarantee returns for investors. Before investing in ASX uranium stocks, it is imperative for investors to understand the pros and cons of investing in such stocks.
Some of the pros of buying Australian uranium stocks
- Positive outlook: The near-term outlook for the uranium stocks is positive because of increasing demand and limited supply. The demand for uranium is expected to rise significantly as the demand for clean, efficient energy using nuclear continues to grow.
- Past performance: Many ASX-listed uranium stocks have witnessed a phenomenal bull run over the past decade or so, driven by rising demand for uranium. The bull run is expected to continue as rising demand and limited supply continue to push the uranium prices up.
- Underpriced asset: Taking into account the rising demand and depleting inventories, many believe uranium may be underpriced. It suggests that the asset has a lot of room to grow as the demand for clean and efficient nuclear energy continues to grow.
Some of the cons of buying Australian uranium stocks
- Cyclical nature: Though uranium demand is on the rise, the mineral commodity markets are usually cyclical in nature, which means their prices rise and fall substantially over time. Thus, it is important that investors understand this cyclical nature before investing in uranium stocks.
- Foreign country risk: Many ASX uranium stocks have projects outside Australia as well. Such projects may get disturbed if there is unrest in the foreign country, resulting in losses for Australian companies.
- Regulatory changes and environmental concerns: Uranium mining is subject to regulatory and environmental approvals. Even a minute regulatory change or any environmental issue could result in project delays.
Methodology: How we chose the best Australian uranium stocks
Our list of the best Australian uranium stocks includes companies with solid fundamentals and a global footprint. We considered the past performance of the ASX uranium stocks in addition to their future outlook.
Some of the factors that we considered to choose the best Australian uranium stocks are:
- Past performance: The stocks exhibiting strong and consistent performance scored high on our list.
- Global footprint: Global footprint here means companies having assets outside of Australia. We have considered companies that not only have uranium projects in Australia but in key uranium areas outside Australia as well.
- Rich stakes: Our list consists of companies that have a significant stake in key uranium properties in Australia and outside Australia. Bannerman Energy, for instance, is working on the Etango uranium project in Namibia, which is one of the world’s largest untapped uranium resources.
- Earnings growth: We have considered companies that have shown consistent and above-average earnings growth over the past few years. Additionally, we took into account revenue growth as well.
- Analysts estimate: Though we didn’t base our list solely on analysts’ recommendations, we did consider analysts’ comments on the stocks we shortlisted. Moreover, we also took into account analysts’ ratings and price targets.
Australian Uranium stocks FAQs
How to invest in Australian Uranium stocks
Why are Uranium stocks so popular in Australia?
Is uranium a good investment?
References
- Etango Project; Bannerman Energy
- Langer Heinrich Mine; Paladin Energy
- Honeymoon Project Overview; Boss Energy
- Reports; Silex
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