The 2 best ASX uranium shares to buy right now

Thanks to Russia's belligerence and the global push for decarbonisation, one expert reckons nuclear power is back in vogue.

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More than one expert reckons these days that ASX shares in the uranium industry are about to enjoy a revival not seen for years.

The Market Matters team, for example, reckons it's a sector with "meaningful tailwinds that are likely to persist for years to come".

"The global energy mix is changing as decarbonisation is one of, if not, the most dominant investment theme[s] for the next decade," said the team leader and Shaw and Partners portfolio manager James Gerrish.

"We believe nuclear energy will become a larger slice of the energy mix, and we are seeing tangible evidence of this occurring."

He noted that year to date almost 100 million pounds of uranium have been contracted, which is already the highest yearly amount for more than a decade.

Funnily enough, the spot uranium price has held steady over the past 12 months, which means related stocks have also gone sideways.

But, of course, both nuclear reactors and uranium mines take a while to reactivate after being dormant for years.

Over the long term, Gerrish's team are believers.

"Market Matters is bullish on uranium, believing the sector is about to enjoy a period of renaissance."

But which ASX uranium shares are the best buys at the moment? There are two that were mentioned:

Two well-funded Aussie businesses ready to rake it in

Paladin Energy Ltd (ASX: PDN) is Gerrish's "preferred pick from a risk-reward perspective".

"The company owns 75% of the Langer Heinrich mine in Namibia that had been [in] care and maintenance for a number of years," he said.

"However, works for a restart are now ~50% complete with first production expected next year."

Created with Highcharts 11.4.3Paladin Energy PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

While more agile mines might produce uranium earlier than that, Paladin will have economies of scale to its advantage.

"They are well-funded, and construction is on time and on budget with further upside in exploration assets in Australia and Canada."

The Paladin Energy share price is down 3% so far in 2023.

Gerrish's team already owns the stock in its emerging companies portfolio.

His team's second pick, Silex Systems Ltd (ASX: SLX), is not a uranium producer as such.

"Silex is developing a laser-enriched uranium technology in conjunction with sector giant Cameco Corp (NYSE: CCJ)," said Gerrish.

"The demonstration plant in Kentucky is expected to be up and running in around 12 months' time."

Created with Highcharts 11.4.3Silex Systems PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

He added that Silex is cashed up after a capital raise this year.

"The US government is also likely to support any capital requirements as part of the inflation reduction act," said Gerrish.

"Supply of High Assay Low Enriched Uranium (HALEU), which the next generation of nuclear reactors require, is heavily reliant on Russia."

Silex shares are already 12% higher than where they started 2023. 

Again, the Market Matters team is bullish and long on the stock, holding it in its emerging companies portfolio.

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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