The Peninsula Energy Ltd (ASX: PEN) share price exploded today following positive news for the global uranium market.
Peninsula shares spent all day in the green, surging to close 20% higher at 21 cents apiece. In contrast, the S&P/ASX 200 Index (ASX: XJO) index lifted just 0.36% today.
So why did the Peninsula Energy share price have such a good day?
Biden administration target uranium production
It appears investors were interested in buying up Peninsula shares following news out of the United States overnight.
According to a Bloomberg report, US Government energy officials are meeting with congress staff to discuss a uranium deal.
President Joe Biden's administration is reportedly seeking support for a $4.3 billion plan to buy uranium from domestic producers. Peninsula Energy is a mineral explorer focused on the Lance Uranium Project in the US state of Wyoming.
The company is intent on expanding its project in the US. On 16 May, Peninsula Energy announced it had boosted its North American board presence with the appointment of Brian Booth as a non-executive director.
Commenting on the company's plans for the Lance Uranium Project in the US, chairman John Harrison said:
We are very happy to secure the experience and services of Brian as a non-executive director as we embark on a critical six-month period for the company.
Brian brings extensive North American mining and capital markets experience and an impressive history of successfully guiding and leading companies through the mining lifecycle.
I much look forward to working with Brian as we work towards transitioning Lance into production.
Peninsula plans to make a final investment decision on the Lance project in the 2022 calendar year.
Peninsula Energy share price snapshot
The Peninsula share price flew higher than its ASX uranium peers today. The Paladin Energy Ltd (ASX: PDN) jumped almost 13% at the close, Boss Energy Ltd (ASX: BOE) surged 12%, while Bannerman Energy Ltd (ASX: BMN) leaped 9.5%.
The Peninsula Energy share price has soared 27% in the past 12 months, lifting 5% year-to-date.
In contrast, the S&P/ASX 200 Index (ASX: XJO) has shed 2% in the past year.
Peninsula Energy has a market capitalisation of about $209 million based on the current share price.
