ASX uranium stocks go gangbusters as the world turns to nuclear energy
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ASX uranium stocks go gangbusters as the world turns to nuclear energy

Australia’s three biggest uranium shares have hit 10-year highs in 2023

By Bronwyn Allen
Tue, Oct 31, 2023 10:49amGrey Clock 3 min

Uranium is set to play a major role in the world’s green energy transition, with many nations proactively developing their nuclear energy capacity to reduce their reliance on fossil fuels for power generation in the future.

Whilst most nations are pursuing renewables and green energy storage systems as their definitive long-term solution for climate change, it is likely not possible to develop enough wind and solar technology and infrastructure quickly enough to replace fossil fuels in time to meet 2050 net-zero emissions targets.

On top of this, volatile oil and gas prices amid supply uncertainty have enhanced the interest in nuclear power. The pandemic and Russia-Ukraine conflict created significant oil supply disruptions, OPEC has recently placed limits on production, and the Israel-Gaza war may make the situation even worse. AMP Chief Economist Shane Oliver says the global oil price could rise to US$150 per barrel – up from the low $80 range today – if Israel and Iran commence a military engagement.

Against this backdrop, nations are rushing to embrace nuclear technology to act, at least, as an initial first step on the road to a green energy future. According to the International Atomic Energy Agency (IAEA), there are approximately 440 reactors in operation across 32 countries today, with 56 new ones under construction. Monash Investors estimates there are another 100 reactors in the advanced planning stages across 17 countries. China alone is expected to build 32 new reactors by the end of the 2020s.

Surging demand for uranium has been met with low existing inventories. This has created a perfect storm for the global uranium price, which is now at a 12-year high of US$73 per pound. The rising uranium price has made it economical for many mining companies to restart dormant mines and develop new ones in the face of new and likely ongoing long-term demand. “We see prices rising year-on-year for the next 10-20 years or till the world finds another source for large scale uninterruptible base load power with a low carbon footprint,” SP Angel mining analyst John Meyer told Reuters recently.

All of this has led to skyrocketing share prices for ASX uranium stocks this year.

In Australia, nuclear energy is banned. The Federal Opposition has been arguing to include nuclear energy in the mix for Australia’s own green energy transition. The Albanese Government disagrees, advocating for continuing renewables development instead. Federal Energy Minister Chris Bowen says developing local nuclear energy production is too expensive. He says recent modelling shows it would cost $387 billion to replace Australia’s coal-fired power plants with small modular reactors.

 

Australia’s 3 largest ASX uranium stocks

 

The three biggest pure-play uranium shares on the ASX have outperformed the broader market exponentially in 2023. While the S&P/ASX 200 Index has lost 2.5% of its value, Australia’s biggest listed pure-play uranium miners have exploded with share price growth of 40% to 115% between them.

 

Paladin Energy

Paladin Energy is the biggest pure-play uranium stock listed on the ASX, with a market capitalisation of $2.81 billion. The Paladin Energy share price closed on Monday at 95 cents, up 43% in 2023 so far. The stock reached a decade-high price of $1.15 in September.  According to a survey of analysts on CommSec, five out of seven analysts covering Paladin Energy shares rate them a strong buy.

 

Boss Energy

Boss Energy has a market capitalisation of $1.59 billion. The Boss Energy share price closed on Monday at $4.37, up 115% in 2023. It hit an all-time record price of $4.98 in September. Three out of six analysts covering Boss Energy shares rate them a hold.

 

Deep Yellow

Deep Yellow has a market capitalisation of $963 million. The Deep Yellow share price closed yesterday at $1.27, up 85% in 2023. The stock cracked a 10-year high of $1.41 per share in October.  Three out of three analysts covering Deep Yellow shares rate them a strong buy.



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‘Are There Any Parisians Left?’ The Olympics Have Residents Fleeing the City.
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As Paris makes its final preparations for the Olympic games, its residents are busy with their own—packing their suitcases, confirming their reservations, and getting out of town.

Worried about the hordes of crowds and overall chaos the Olympics could bring, Parisians are fleeing the city in droves and inundating resort cities around the country. Hotels and holiday rentals in some of France’s most popular vacation destinations—from the French Riviera in the south to the beaches of Normandy in the north—say they are expecting massive crowds this year in advance of the Olympics. The games will run from July 26-Aug. 1.

“It’s already a major holiday season for us, and beyond that, we have the Olympics,” says Stéphane Personeni, general manager of the Lily of the Valley hotel in Saint Tropez. “People began booking early this year.”

Personeni’s hotel typically has no issues filling its rooms each summer—by May of each year, the luxury hotel typically finds itself completely booked out for the months of July and August. But this year, the 53-room hotel began filling up for summer reservations in February.

“We told our regular guests that everything—hotels, apartments, villas—are going to be hard to find this summer,” Personeni says. His neighbours around Saint Tropez say they’re similarly booked up.

As of March, the online marketplace Gens de Confiance (“Trusted People”), saw a 50% increase in reservations from Parisians seeking vacation rentals outside the capital during the Olympics.

Already, August is a popular vacation time for the French. With a minimum of five weeks of vacation mandated by law, many decide to take the entire month off, renting out villas in beachside destinations for longer periods.

But beyond the typical August travel, the Olympics are having a real impact, says Bertille Marchal, a spokesperson for Gens de Confiance.

“We’ve seen nearly three times more reservations for the dates of the Olympics than the following two weeks,” Marchal says. “The increase is definitely linked to the Olympic Games.”

Worried about the hordes of crowds and overall chaos the Olympics could bring, Parisians are fleeing the city in droves and inundating resort cities around the country.
Getty Images

According to the site, the most sought-out vacation destinations are Morbihan and Loire-Atlantique, a seaside region in the northwest; le Var, a coastal area within the southeast of France along the Côte d’Azur; and the island of Corsica in the Mediterranean.

Meanwhile, the Olympics haven’t necessarily been a boon to foreign tourism in the country. Many tourists who might have otherwise come to France are avoiding it this year in favour of other European capitals. In Paris, demand for stays at high-end hotels has collapsed, with bookings down 50% in July compared to last year, according to UMIH Prestige, which represents hotels charging at least €800 ($865) a night for rooms.

Earlier this year, high-end restaurants and concierges said the Olympics might even be an opportunity to score a hard-get-seat at the city’s fine dining.

In the Occitanie region in southwest France, the overall number of reservations this summer hasn’t changed much from last year, says Vincent Gare, president of the regional tourism committee there.

“But looking further at the numbers, we do see an increase in the clientele coming from the Paris region,” Gare told Le Figaro, noting that the increase in reservations has fallen directly on the dates of the Olympic games.

Michel Barré, a retiree living in Paris’s Le Marais neighbourhood, is one of those opting for the beach rather than the opening ceremony. In January, he booked a stay in Normandy for two weeks.

“Even though it’s a major European capital, Paris is still a small city—it’s a massive effort to host all of these events,” Barré says. “The Olympics are going to be a mess.”

More than anything, he just wants some calm after an event-filled summer in Paris, which just before the Olympics experienced the drama of a snap election called by Macron.

“It’s been a hectic summer here,” he says.

Hotels and holiday rentals in some of France’s most popular vacation destinations say they are expecting massive crowds this year in advance of the Olympics.
AFP via Getty Images

Parisians—Barré included—feel that the city, by over-catering to its tourists, is driving out many residents.

Parts of the Seine—usually one of the most popular summertime hangout spots —have been closed off for weeks as the city installs bleachers and Olympics signage. In certain neighbourhoods, residents will need to scan a QR code with police to access their own apartments. And from the Olympics to Sept. 8, Paris is nearly doubling the price of transit tickets from €2.15 to €4 per ride.

The city’s clear willingness to capitalise on its tourists has motivated some residents to do the same. In March, the number of active Airbnb listings in Paris reached an all-time high as hosts rushed to list their apartments. Listings grew 40% from the same time last year, according to the company.

With their regular clients taking off, Parisian restaurants and merchants are complaining that business is down.

“Are there any Parisians left in Paris?” Alaine Fontaine, president of the restaurant industry association, told the radio station Franceinfo on Sunday. “For the last three weeks, there haven’t been any here.”

Still, for all the talk of those leaving, there are plenty who have decided to stick around.

Jay Swanson, an American expat and YouTuber, can’t imagine leaving during the Olympics—he secured his tickets to see ping pong and volleyball last year. He’s also less concerned about the crowds and road closures than others, having just put together a series of videos explaining how to navigate Paris during the games.

“It’s been 100 years since the Games came to Paris; when else will we get a chance to host the world like this?” Swanson says. “So many Parisians are leaving and tourism is down, so not only will it be quiet but the only people left will be here for a party.”

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