Why is the Paladin Energy share price rocketing higher today?

This uranium share is having a day to remember on Friday.

| More on:
A man wearing glasses and a white t-shirt pumps his fists in the air looking excited and happy about the rising OBX share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Paladin Energy Ltd (ASX: PDN) share price is having a very strong finish to the week.

In afternoon trade, the uranium developer's shares are up 10% to 67 cents.

Why is the Paladin Energy share price racing higher?

Investors have been bidding Paladin Energy shares higher today due to some very good news.

Earlier this week, the company's shares were sold off amid concerns over remarks from a government official in the southern African country of Namibia. This is where the company's globally significant uranium mine can be found.

Namibian Mines and Energy Minister Tom Alweendo, said:

We are making a case that local ownership must start with the state, which holds ownership of our natural resources. The proposed state ownership should take the form where the state owns a minimum equity percentage in all mining companies and petroleum production, for which it does not have to pay.

What's the latest?

As you might have guessed from the Paladin Energy share price performance today, things have taken a turn for the better.

This morning, Paladin Energy revealed that the Namibian government has refuted claims that it plans to take stakes in the country's existing mines. It may, however, take stakes in mines that are approved in the future. But this would not impact Paladin Energy's existing operations.

The company attached a government release to its announcement, which states:

The Government has no intention to seize any stake from existing mineral or petroleum licence holders and remain committed to uphold the sanctity of contract. However, the reality remains that Namibians are and remain disadvantaged because they may not have the financial and other means to exercise their rights in relation to natural resources, as such the State as supreme owner of these natural resources may demand a certain minimum stake through public enterprises such as EPANGELO Mining or NAMCOR in any mineral or petroleum licences that may be issued in future.

Motley Fool contributor James Mickleboro 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.

More on Energy Shares

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Energy Shares

Why this ASX uranium stock could rocket 100%+

Let's see why this speculative stock is being tipped to double in value by Bell Potter.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Energy Shares

Macquarie tips 23% upside for this ASX All Ords mining stock

Let's see why the broker thinks this stock could be a top buy.

Read more »

a group of three electricity workers stand smiling wearing hard hats and high visibility vests in front of an array of high voltage power equipment.
Energy Shares

Macquarie raises price target on Origin Energy shares

The broker just raised it's price target. Here's why.

Read more »

A smiling woman holds a Facebook like sign above her head.
Energy Shares

Bell Potter says this ASX 200 uranium stock is a top buy

Let's find out why the broker is feeling bullish on this stock.

Read more »

Worker on a laptop at an oil and gas pipeline.
Energy Shares

Boss Energy shares have surged 93% since April. Here's what Macquarie expects now

Boss Energy shares remain a favourite for ASX short sellers. Are they in a for a payday or headed for…

Read more »

A young man wearing glasses writes down his stock picks in his living room.
Energy Shares

3 reasons to buy this beaten down ASX 200 coal stock today

A leading expert forecasts a big potential rebound ahead for this quality ASX 200 coal stock.

Read more »

Female miner uses mobile phone at mine site
Energy Shares

Here are the latest growth forecasts for the Pilbara Minerals share price

Can investors charge up their returns with this ASX lithium share?

Read more »

An oil worker in front of a pumpjack using a tablet.
Energy Shares

Top 5 ASX 200 energy shares of FY25 amid a challenging year for sector

The energy sector was the weakest of the 11 market sectors in FY25.

Read more »