Top 5 ASX uranium stocks to watch

What makes uranium stocks interesting right now?

ASX-listed uranium stocks could emerge as solid investment picks if nuclear power becomes a publicly acceptable alternative to the fossil fuels that drive climate change. 

Nuclear energy has long received a bad rap due to concerns about its potentially disastrous impact on the environment, as well as the ability for its raw materials to be used in weapons of mass destruction. 

Public acceptance of nuclear energy could be on track to change, however, particularly amidst mounting concern over the adverse impacts of climate change. 

Advocates of nuclear power point to it as a safe and effective form of clean energy when properly deployed using the latest modern technologies. Nuclear power has the advantage of being available under all weather conditions, unlike solar or wind power, whose inconsistent reliability requires large-scale storage solutions. 

In the United States, nuclear energy is currently the largest source of clean power and accounts for more than half of the country’s emissions-free electricity. It generates almost 800 million kilowatt hours of electricity each year, cutting down on over 470 million metric tons of carbon emissions. 

Should nuclear power emerge as a publicly acceptable form of clean energy, this will provide a major boost to uranium stocks involved in the production and processing of the sector’s critical raw materials. 

The top 5 uranium stocks to watch

Australian investors seeking to capitalise upon the potential rise of nuclear power can do so via a number of uranium stocks listed on the ASX. Here’s the list of five of the top ASX-listed uranium stocks to watch as of February 2025:

1. Nexgen Energy DRC (ASX: NXG)

2. Paladin Energy (ASX: PDN)

3. Boss Resources Ltd (ASX: BOE)

4. Deep Yellow (ASX: DYL)

5. Energy Resources of Australia (ASX: ERA)

NexGen Energy Ltd (ASX: NXG) 

NexGen Energy is a Canadian company listed on the ASX, dedicated to developing the Rook I Project in Saskatchewan, Canada. This project is home to the high-grade Arrow Deposit, discovered in 2014, which is considered one of the most significant undeveloped uranium deposits globally. NexGen’s commitment to environmental and social governance is evident in its approach to project development – aiming to set new standards in the industry. 

In November 2024, NexGen achieved a significant milestone by obtaining full provincial environmental approval from the Saskatchewan government for the Rook I Project, marking the first greenfield uranium development to reach this stage in over two decades. This approval underscores the project’s robustness and the company’s dedication to responsible mining practices. 

Investors may be drawn to NexGen due to its substantial resource base and the advanced stage of the Rook I Project. The company’s strategic focus on developing high-grade uranium deposits positions it well to meet the growing global demand for clean energy sources.

Market cap: $5.94 billion.

Paladin Energy Ltd (ASX: PDN)

Paladin Energy is a globally significant independent uranium producer, holding a 75% stake in the Langer Heinrich Mine (LHM) located in Namibia. The mine has a history of production, having delivered over 43 million pounds of U₃O₈ between 2007 and 2018. After a period of care and maintenance due to low uranium prices, Paladin has successfully recommenced operations at LHM, with the first production achieved in March 2024. 

In June 2024, Paladin announced a deal to acquire Canadian mining development company Fission Uranium Corp. for $1.14 billion, aiming to diversify its asset base and strengthen its position in the global uranium market. The acquisition was completed in December 2024 after receiving approval from the Canadian government. 

Investors are optimistic about Paladin’s strategic initiatives, including the successful restart of LHM and the acquisition of Fission Uranium, which are expected to enhance the company’s production capacity and market presence.

Market cap: $3.56 billion.

Boss Energy Ltd (ASX: BOE)

Boss Energy is focused on the restart of the Honeymoon Uranium Project in South Australia, one of the few uranium projects globally ready to come on-stream in the early stages of the emerging uranium bull market. The company achieved its first production in the first quarter of 2024 and is targeting a nameplate production capacity of 2.45 million pounds per annum by mid-2025. 

In addition to Honeymoon, Boss holds a 30% interest in the Alta Mesa in-situ recovery project in South Texas, which is due to commence production in the first half of 2024. This strategic diversification enhances Boss’s production profile and positions the company to benefit from the anticipated growth in uranium demand. 

Investors are typically attracted to Boss Energy’s proactive approach to project development and its readiness to supply uranium to the market, aligning with the global shift towards clean energy solutions.

Market cap: $1.39 billion.

Deep Yellow Ltd (ASX: DYL)

Deep Yellow is a uranium development and exploration company progressing its dual-pillar strategy to establish a multi-mine uranium company with the capacity to produce over 7 million pounds per annum across two assets. The company’s flagship Tumas Project in Namibia has completed a Definitive Feasibility Study, with a Final Investment Decision expected by March 2025 and operations scheduled to commence in 2026. 

In addition to Tumas, Deep Yellow owns the Mulga Rock Project in Western Australia, with a revised Definitive Feasibility Study set to commence in the third quarter of 2024. The company is evaluating the inclusion of critical minerals, rare earth elements, and additional uranium to increase the scale and life of the project. 

Investors may wish to keep an eye on Deep Yellow due to its experienced management team and its strategic focus on developing multiple projects in tier-one uranium jurisdictions, positioning the company to meet the increasing global demand for uranium.

Market cap: $1.29 billion.

Energy Resources of Australia Ltd (ASX: ERA)

Energy Resources of Australia has been a significant player in Australia’s uranium mining sector, primarily through its Ranger Mine located in the Northern Territory. The Ranger Mine ceased production in January 2021 after 40 years of operation, during which it produced over 132,000 tonnes of uranium oxide. The company is now focused on the comprehensive rehabilitation of the Ranger Project Area, with a commitment to restoring the site to a standard that could support future land uses.

While ERA is not currently producing uranium, its extensive experience and established infrastructure in the sector position it as a noteworthy entity within Australia’s uranium landscape. Investors may find interest in ERA’s commitment to environmental stewardship and its potential future opportunities in the uranium market.

These companies represent a diverse cross-section of the ASX-listed uranium sector, each with unique projects and strategic approaches that make them compelling considerations for investors interested in the evolving uranium market.

Market cap: $1.22 billion.

How to trade or invest in ASX-listed uranium stocks

You can gain exposure to ASX-listed uranium stocks in two ways: either through share trading or derivatives trading. Share trading means you take direct ownership of the stock, meaning you could profit if the share price increases in value or if the company decides to pay a dividend.

Unlike owning shares outright, derivatives trading – such as CFD trading – allows you to speculate on the price movement of a company’s shares without actually owning them. CFD trading may prove attractive to some investors for several reasons, including the flexibility to trade stocks long and short, the ease with which it allows you to hedge, and the ability to gain greater exposure to an asset through leverage.

Follow the simple steps below to start investing or trading uranium stocks:

Investing in uranium stocks

1. Open an account or log in to your share trading account
2. Go to our platform and search for the company you wish to invest in
3. Select ‘buy’ in the deal ticket to open your investment position
4. Choose the number of shares you want to buy
5. Confirm your purchase and monitor your investment

Trading uranium shares

1. Decide whether CFD trading is for you or practice with a demo account
2. If you are ready to trade, open an account or log in
3. Search for the company you wish to trade
4. Choose your position size and select ‘buy’
5. Confirm your trade and monitor your position

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