ASX-listed uranium stocks rally following heightened prospects of new nuclear-plants in Japan

ASX uranium stocks staged a material rally today, with key yellow cake stocks significantly outperforming the materials sector (-0.81%) and ASX 300 metals and mining indices (0.51%).

What excited the market about the fortunes for some locally-listed uranium stocks today was talk of Japan resuming its nuclear power agenda.

On the strength of that news a dozen uranium-based ASX stock soared between 5% and 20% today, with eight putting on double-digit share price growth.

After 10 years in which operators have largely been unable to reopen existing plants, Japan’s prime minister Fumio Kishida plans to commission a review into the pros and cons of building new nuclear-power plants.

However, the prospect of new nuclear-plants in Japan did little to move the price of the yellow cake.

Uranium price over 12 months. Trading Economics

Timing is right

Kishida believes the timing for such a review is right, especially given the uncertain global energy market and the need for carbon-free energy.

Efforts to get Japan to reconsider new nuclear-power plants follow a heightened global price of liquefied natural gas (LNG), Japan’s leading fuel for electricity.

Earlier this month, a road map presented by the Ministry of Economy, Trade and Industry noted that newly built large-scale plants could be in operation by the latter half of the 2030s, while smaller plants using new technology could be in operation by the early 2040s.

Here’s what happened today

Paladin Energy (ASX: PDN) up 11.56% to $0.82

Deep Yellow (ASX: DYL) up 18.30% to $0.905

Bannerman Energy (ASX: BMN) up 15.38% to $2.10

Energy Resources of Australia (ASX: ERA) up 8.16% to $0.265

Boss Energy (ASX: BOE) up 5.22% to $2.62

Silex Systems (ASX: SLX) up 11.75% to $3.71

Alligator Energy (ASX: AGE) up 10.53% to $0.063

Elevate Uranium (ASX: EL8) up 23.46% to $0.50

Lotus Resources (ASX: LOT) up 13.04% to $0.26

Marencia Energy (ASX: MEY) up 23.46% to $0.50

Nexgen Energy (ASX: NXG) up 8.11% to $6.13

Peninsula Energy (ASX: PEN) up 9.38% to $0.175

92 Energy up 20%

While 92 Energy (ASX: 92E) may have received some updraft from the broader sector rally, much of uranium explorer’s 19.32% upside at the close can be attributed to confirmation of more strong uranium results.

Summer drilling at the Gemini Mineralised Zone (GMZ) within the Gemini project in Canada’s prolific Athabasca Basin delivered assays from six of a total 21 holes.

A best result returned so far includes 43m at 0.62% uranium oxide, including 6m at 2.17% uranium oxide, within 18m at 1.16% uranium oxide.

Exceeded expectations

Managing director Siobhan Lancaster noted that today’s announced results exceeded expectations.

“The standout drill hole returned 43m at 0.62% uranium oxide … it is exceptional by global industry standards and demonstrates the potential of GMZ,” Lancaster noted.

“Other holes also returned thick intervals of uranium mineralisation [and] we believe significant upside remains at GMZ as the mineralisation remains open in multiple directions.”

A follow-up winter campaign at GMZ is expected to target untested prospective areas within the zone and along strike.

92 Energy share price over 3 months.