ASX uranium shares have enjoyed some monstrous gains in the past month thanks to skyrocketing uranium prices. Between 31 August and 16 September, the largest ASX-listed uranium player, Paladin Energy Ltd (ASX: PDN) surged almost 120% from 51 cents to 9-year highs of $1.120. Prospective explorers such as Deep Yellow Limited (ASX: DYL) , Peninsula Energy Ltd (ASX: PEN) , 92 Energy Ltd (ASX: 92E) and Boss Energy Ltd (ASX: BOE) delivered similar triple digit gains over the same period.
But more recently, ASX uranium shares have been running out of steam, many of which have declined 20-30% from recent multi-year highs. Why are ASX uranium shares tumbling?
The sharp re-rate across the uranium sector was fueled by Sprott’s Physical Uranium Trust, a Canadian investment fund focused on aggressively buying physical uranium off the spot market.
Uranium is an illiquid commodity that does not trade on an open market like copper […]
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