What are the best ASX uranium stocks to watch? [2024]
As global economies rethink their stances on nuclear energy, these uranium companies have leveraged themselves to the global opportunity. As investors increasingly look for energy diversification, they may provide relative strength.
Nuclear energy has once been the future of energy generation worldwide, but nations have steered away from it due to risk perceptions. While the search for clean energy dictates ESG mandates and energy scarcity roams the world, nuclear energy stocks might be on the rise again, with uranium miners in 2022 outperforming the broader stock market. The nuclear fuel reached above US$100 at the beginning of 2024, the first time since 2007, causing a rally for uranium stocks on the ASX.
Uranium investors continue to be engaged in the rising energy source and have been actively investing in Australian shares this year.
Discover what are the best ASX uranium stocks for you
Company Name | Ticker Symbol | Stock Price | Year to Date | Market Capitalisation |
|---|---|---|---|---|
BHP Group Limited | $46.95 | -7.10% | $232.4b | |
Rio Tinto Limited | $129.23 | -5.37% | $47.44b | |
Paladin Energy Ltd | $1.22 | +21.29% | $3.65b | |
Boss Energy Ltd | $5.48 | +28.64% | $2.16b | |
Energy Resources of Australia Limited | $0.055 | +37.50% | $1.21m | |
Silex Systems Limited | $4.74 | +9.22% | $1.11b | |
Deep Yellow Limited | $1.41 | +24.78% | $1.06b | |
Bannerman Energy Ltd | $3.50 | +20.69% | $529m | |
Lotus Resources Limited | $0.315 | +5.00% | $528m | |
Core Lithium Ltd | $0.198 | -27.04% | $417m |
Data as of 24 January 2024. Source: Stake, ASX, Google.
*The list of shares mentioned is ranked by market capitalisation. When deciding what uranium shares to feature, we analyse the dividend yield, consistency of dividend payouts, financials, recent news, the state of the industry, and whether or not they are actively traded on Stake.
Decide which uranium companies in Australia to add to your watchlist
1. BHP Group Limited ($BHP)
Market Capitalisation: $232.4b
Stock price (as of 24/01/2024): $46.96
Stake Platform Bought / Sold (Last 90 days: 26 Oct 2023 - 24 Jan 2024): 59% / 41%
The world’s biggest mining company is, unsurprisingly, the biggest uranium producer listed on the Australian Securities Exchange. With its Olympic Dam in South Australia, it produces over 3,500 tons of uranium annually. Despite uranium’s rising price, the fall of iron ore demand (one of BHP’s core products) impacts the BHP stock price.
2. Rio Tinto Limited ($RIO)
Market Capitalisation: $47.44b
Stock price (as of 24/01/2024): $129.23
Stake Platform Bought / Sold (Last 90 days: 26 Oct 2023 - 24 Jan 2024): 55% / 45%
Despite being the second largest mining company in the world, Rio Tinto once ruled uranium production, mining over 11 tons of the commodity in 2010 under its majority-owned Ranger Mine.
Unfortunately, Ranger Mine, which used to be the longest-running uranium mine in the country, closed down in 2021 after 40 long years of operations in order to commence rehabilitation. While the mine is expected to complete rehabilitation by 2026, RIO is not currently engaged in any other uranium mining activities, instead focusing on iron ore.
💡Related: Looking for Iron Ore stocks on the ASX?→
3. Paladin Energy Ltd ($PDN)
Market Capitalisation: $3.65b
Stock price (as of 24/01/2024): $1.22
Stake Platform Bought / Sold (Last 90 days: 26 Oct 2023 - 24 Jan 2024): 58% / 42%
BHP and Rio Tinto might be huge players in the mining industry, but if you want to invest in a pure player Australian uranium stock, Paladin Energy is the biggest company in the sector.
Over its 10-year history, Paladin Energy has produced over 18,000 tons of uranium ore in its facilities in Canada, Australia and Namibia. Despite that, investors must note that the company has only recorded a profit once in the last 15 years.
Paladin Energy also made our list of the top ASX energy stocks being traded by Stake investors.
🆚 Compare PDN vs BOE stock comparison→
4. Boss Energy Ltd ($BOE)
Market Capitalisation: $2.16b
Stock price (as of 24/01/2024): $5.48
Stake Platform Bought / Sold (Last 90 days: 26 Oct 2023 - 24 Jan 2024): 63% / 37%
Though still pre-operational, Boss Energy may become one of uranium’s top players in the near future. With over 32M estimated tons of uranium in its Honeymoon mining site in South Australia, Boss Energy expects to mine its first batch of uranium by December 2023.
Under an offtake agreement, BOE has agreed to sell 1 million pounds of uranium to a publicly listed power utility in the U.S., over seven years starting in 2025.
5. Energy Resources of Australia Limited ($ERA)
Market Capitalisation: $1.21b
Stock price (as of 24/01/2024): $0.055
Stake Platform Bought / Sold (Last 90 days: 26 Oct 2023 - 24 Jan 2024): 53% / 47%
Australia's longest continually operating uranium producer, Energy Resources of Australia has been around since 1980, mining over 132,000 tons of uranium. The company is publicly-listed, however 86% of its shares are owned by Rio Tinto.
For investors looking to invest directly in Ranger Mine (as outlined in Rio Tinto's description above), they have the option of directly buying ERA's shares on the ASX. The company is now focusing on the rehabilitation of its Ranger Mine and processing facilities in the Northern Territory, which is expected to be completed by 2026.
6. Silex Systems Limited ($SLX)
Market Capitalisation: $1.11b
Stock price (as of 24/01/2024): $4.74
Stake Platform Bought / Sold (Last 90 days: 26 Oct 2023 - 24 Jan 2024): 55% / 45%
Silex isn’t your average uranium stock. The company doesn’t mine uranium, but quite the opposite: Silex enriches it. They use cutting edge technology to deliver high-quality and low-cost enriched uranium for nuclear reactors worldwide. And uranium isn’t the company’s only business: they also enrich silicon for quantum computers and have their eyes on making components for medical devices. Investors have been excited over the company in the last year, with the SLX share price is up by 117%.
7. Deep Yellow Limited ($DYL)
Market Capitalisation: $1.06b
Stock price (as of 24/01/2024): $1.41
Stake Platform Bought / Sold (Last 90 days: 26 Oct 2023 - 24 Jan 2024): 63% / 37%
Deep Yellow is another pre-operational uranium giant. With mining fields across Australia and Namibia, the company hopes to produce over 2,000 tons of uranium every year. If that might seem far-fetched, think again: in 2021 they merged with one of Australia’s top companies in the industry, Vimy Resources, concluding what was the biggest uranium deal in the last decade.
The company has been around since 1985, and it being pre-operation still is a cause of concern for investors. The good news is that Deep Yellow now owns several high-potential projects that may bring incredible earnings in the future. The DYL share price rallied between 2021 and 2022, and now is up +25% YTD in 2024.
8. Bannerman Energy Ltd ($BMN)
Market Capitalisation: $529m
Stock price (as of 24/01/2024): $3.50
Stake Platform Bought / Sold (Last 90 days: 26 Oct 2023 - 24 Jan 2024): 57% / 43%
Bannerman Energy is another mining company drilling in Namibian soil in Southern Africa. While still in its pre-operational phase, their Etango mining facility is expected to produce over 23,000 tons of uranium once finished.
Additionally, their operating costs are estimated at US$40.3/lb, 20% below current uranium prices. While that sounds positive for investors, Bannerman Energy has been around since 2005, and has only relied on equity raisings to sustain its operations as it has not generated revenues. For investors, this means their share ownership would get diluted each time the company issues new shares.
9. Lotus Resources Limited ($LOT)
Market Capitalisation: $528m
Stock price (as of 24/01/2024): $0.315
Stake Platform Bought / Sold (Last 90 days: 26 Oct 2023 - 24 Jan 2024): 64% / 36%
Having once produced over 1,500 tons of uranium annually, Lotus Resources is one of the only ASX-listed companies mining uranium in the African nation of Malawi. Its golden goose, the Kayelekera mining field had been shut down from 2014 due to low uranium prices, but as the commodity surged, Lotus decided to recommission the facility. The project is unfortunately still in limbo due to delays on the recommission. Due to the closed operations, Lotus Resources has not recorded any sales revenues since 2017, and has relied on capital raises to keep it afloat. Like most other stocks on this list, LOT stock price's rallied between 2021 and 2022, before dropping steadily in the last year. It has started 2024 on a positive note, with a share price increase of 5% YTD.
10. Core Lithium Ltd ($CXO)
Market Capitalisation: $417m
Stock price (as of 24/01/2024): $0.198
Stake Platform Bought / Sold (Last 90 days: 26 Oct 2023 - 24 Jan 2024): 64% / 36%
While the company's name assumes a focus on lithium mining, Core Lithium produces several more types of rare earth minerals. Of all the rare earths, uranium is one of Core Lithium’s biggest focuses, with two mining facilities down under: one in the Northern Territory and one in South Australia.
Core Lithium has also been feature in our top lithium stocks list.
How to invest in uranium stocks in Australia?
The main way of investing in uranium is through uranium mining companies listed in Australia, using an online investment platform.
1. Open a stock investing account
To invest in uranium shares and ETFs, you'll need to sign up to an investing platform with access to the ASX and Cboe Australia. Lucky for you Stake has access to both stock exchanges.
2. Fund your account
Complete an application with your personal and financial details. Fund your account with a bank transfer, debit card or even Apple/Google Pay.
3. Search for uranium shares or ETFs
Find the asset by searching for the name or ticker symbol. Do your own research to ensure it is the right investment product for your own circumstances.
4. Choose an order type and buy the asset
Buy on any trading day with a market, limit or stop order. Look into dollar cost averaging to spread out your risk, which smooths out buying at consistent intervals.
5. Monitor your investment
Optimise your portfolio by tracking how the security performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights that affect your shares.
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Are uranium stocks under or overpriced?
Figuring out whether a stock is under or overpriced is extremely hard. Financial analysts look through a lot of data to decide whether to buy, sell, or just stay away from an asset. One of the easiest ways to find out if a certain stock is cheap or overvalued is with the help of Stake Black. With a Stake Black membership, not only can you get access to every company’s financial data, but you’ll also be able to check analysts’ recommendations and price targets, enabling you to invest better and make informed decisions.
More resources:
✅ Looking for lithium mining companies in Australia?→
✅ What are the best rare earth stocks on the ASX?→
✅ Are these the best gold ETFs on the ASX?→
Uranium stocks FAQs
Uranium is mostly used as a fuel for nuclear energy generation. However, it is also used in weaponry (not only in nuclear weapons) as it enables weapons to penetrate high-density armour. There is also some residual use in photographic chemicals and as a tiles and glass stainer.
The biggest uranium company in Australia is currently BHP, with its Olympic Dam in South Australia producing over 3,500 tons of uranium ore per year.
According to the World Nuclear Association, the world’s biggest uranium producers are Kazakhstan, Namibia, Canada, Australia, and Uzbekistan. They are responsible for the production of 45.1%, 11.9%, 9.1%, 8.7% and 7.2% of the world's annual production respectively. On the other hand, Australia has the highest amount of uranium resources in the world.
This does not constitute financial product advice nor a recommendation to invest in the securities listed. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking appropriate financial or taxation advice before investing.
Megan is a markets analyst at Stake, with 7 years of experience in the world of investing and a Master’s degree in Business and Economics from The University of Sydney Business School. Megan has extensive knowledge of the UK markets, working as an analyst at ARCH Emerging Markets - a UK investment advisory platform focused on private equity. Previously she also worked as an analyst at Australian robo advisor Stockspot, where she researched ASX listed equities and helped construct the company's portfolios.
