The Paladin Energy Ltd (ASX: PDN) share price closed almost 10% higher today despite no news from the company.
The company's shares finished the day at 91 cents, a 9.64% gain. For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) closed 0.98% higher today.
Let's take a look at why this company's share price had such a stellar day.
Uranium prices
The price of uranium has surged to the highest level since the Fukushima disaster in 2011, Trading Economics reported. The UK government has recently revealed plans to build eight nuclear reactors by 2030.
Paladin is exploring the Langer Heinrich mine in Namibia for uranium. It's located 40km southeast of the Rossing Uranium mine.
Uranium futures hit US$63.7 a pound in global markets overnight. Over the past year, uranium prices have risen nearly 112%.
Paladin is not the only ASX uranium share to rise today. Peninsula Energy Ltd (ASX: PEN) and Bannerman Energy Ltd (ASX: BMN) gained 10.2% and 16.36% respectively.
Overnight, Bank of America also increased its price target on uranium to US$66.90 a pound in 2023. Bank of America analyst Lawson Winder said:
The price increase has been driven by concern about future disruption and a desire by market participants to lock in supplies in anticipation of that possibility.
Paladin Energy share price snapshot
The Paladin share price has soared 123% in the past year while it is up around 4% year to date.
For perspective, the ASX 200 Energy Index has gained 23% in a year.
In the past month, Paladin shares have climbed 4.6%, surging almost 14% in the past week alone.
Paladin has a market capitalisation of about $2.7 billion based on the current share price.
