Weekly Reports | 10:00 AM
This story features DEEP YELLOW LIMITED, and other companies.
For more info SHARE ANALYSIS: DYL
The company is included in ASX200, ASX300 and ALL-ORDS
Accelerating nuclear growth, rising utility contracting and an increasingly constrained supply outlook are reinforcing expectations of a higher uranium prices over the coming decade.
- UBS the latest adopting a positive long-term outlook on uranium equities
- Activity and trends in U308 spot markets over May broadly aligned with April
- Brokers update preferred uranium stocks as Australian companies underperform Canadian peers
- Latest short interests
By Danielle Ecuyer
Compelling macro outlook
In its “Thinking Long-Term” analysis, industry consultants TradeTech argue uranium demand is set to rise substantially through the 2030s as governments, utilities and corporate stakeholders increasingly embrace nuclear power to meet growing electricity needs.
The report concludes the current pipeline of uranium projects is insufficient to meet the acceleration in demand expected from the mid-2030s onwards and that the pace of resource development is currently too slow to satisfy requirements beyond 2040.
TradeTech believes substantial additional mine development and investment will be required, with the long-term outlook continuing to point towards a structurally tight uranium market driven by demand growth that is outpacing increasing supply.
UBS is the latest to embrace an upbeat macro, top-down outlook for the sector in the aftermath of this broker’s 2026 Uranium Day.
The fundamentals are highlighted as “compelling, especially into the end of the decade”.
Canaccord Genuity’s 5th Annual Metals & Mining Conference equally reinforced the increasingly constructive long-term outlook for uranium, with industry participants highlighting a growing disconnect between rising demand and constrained supply increases.
Discussions centred on strengthening demand drivers, including energy security concerns stemming from geopolitical tensions, accelerating global nuclear adoption through reactor restarts, life extensions and new builds, and increasing government support for the nuclear fuel cycle, particularly in the US.
Participants also emphasised the strategic importance of domestically sourced uranium, the need for higher uranium prices to incentivise new mine developments, and the lengthy timeline required to bring new discoveries into production.
The conference highlighted ongoing supply-side challenges, including historical underinvestment in uranium exploration, the difficulty of finding large-scale economic deposits and a widening gap between projected uranium demand and global production capabilities.
Canaccord Genuity noted investor sentiment remains supportive of the sector despite recent volatility in uranium equities.
Feedback from attendees reinforced the view uranium fundamentals continue to strengthen.
Canaccord continues to view weakness in uranium stocks as a buying opportunity and remains positive on the sector’s long-term outlook.
U308 markets over May
TradeTech’s weekly spot price rose US$0.50/lb to US$85/lb in the last week of May, with six transactions conducted.
In the term market, offers were due on May 28 to one non-US utility seeking around 2.5mlbs U308-equivalent between 2027 and 2031.
Two transactions with no new demand in the term market were noted by the industry consultants.
Over the month of May, TradeTech’s spot price slipped to US$85.00/lb, down -US$1.25/lb from April 30.
Over the past year, the U308 spot price has risen 18.1%, while activity in May was similar to April, with 2.1mlbs traded compared to 2.3mlbs reported in the prior month.
Thirty-five spot transactions were concluded compared to twenty-eight in April. Buyers are continuing to pay marginally higher prices for delivery of material at ConverDyn’s Metropolis Works plant in Illinois.
Calendar year-to-date, 180 U308 spot sales, or 15.8mlbs, have been transacted.
Over April and early May, sellers were unable to generate the same buying interest for U308 material located at Orano’s facility in France and Cameco’s facility at Port Hope in Canada.
Multiple long-term agreements were made in May, totalling more than 11.5mlbs of U308, with transactions spanning a variety in delivery periods.
The TradeTech monthly Production Cost Indicator (PCI) rose US$2.20/lb from April, attributed to the ongoing Middle East war.
Higher energy prices have resulted in higher costs for key reagents used by U308 producers, as well as increased diesel costs.
TradeTech’s Mid-term Price Indicator came in at US$87/lb at the end of May, down from US$90/lb at the end of April.
The Long-term Price Indicator lifted to US$95/lb at May-end from US$93/lb at April-end.
Broker updates over the week
UBS’ global team recently initiated coverage on Deep Yellow ((DYL)) and Kazatomprom with Buy ratings. Both are included among preferred stock picks, alongside NexGen Energy ((NXG)), which has a target price of $21.00.
The target price for Deep Yellow is $2.15.
Macquarie retains an Outperform rating on the stock with a $2.25 target price, noting the Tumas project has completed earthworks and is moving to the civil works phase over the next 10-12 months.
The developer has flexibility around the timing of the final investment decision.
Paladin Energy ((PDN)) remains Neutral rated by UBS with a target price of $12.60.
Macquarie upgraded Paladin to Outperform from Neutral with an unchanged target price of $13.85.
The upgrade was predicated on the share price of around $10.48 implying a U308 price of US$77/lb versus the spot price, which now stands at US$85/lb.
Equally, the shares have underperformed NexGen and Cameco by around -13% and -15%, respectively, over the past five weeks.
Paladin shares are viewed as offering value even with possible downside risk to FY27 consensus production forecasts. Macquarie’s forecast stands at 5.2mlbs for FY27 versus consensus at 5.6mlbs.
The analyst points to the successful ramp-up of Langer Heinrich, which has nearly achieved free cash flow generation.
Macquarie also upgraded Boss Energy ((BOE)) to Neutral from Underperform, with an unchanged target price of $1.30.
While retaining concerns around the resource downgrades for Honeymoon, the analyst believes the risks are more than reflected in the share price.
Macquarie retains Lotus Resources ((LOT)) with an Outperform rating while lowering its target price to $1.30 from $1.90 due to the application of an “equity dilution discount factor”. This underscores the likelihood management will need to raise more capital at a considerably larger discount and lower price level.
Overall, Macquarie prefers producer Paladin and developers Deep Yellow and Bannerman Resources ((BMN)).
The latter is Outperform rated with a $5.55 target price.
Short interests
Lotus remains the most shorted stock on the ASX at 19.03%, up 1.41% on the prior week as at May 26, according to data provided by ASIC.
Boss Energy is in fourth position at 14.28%, down slightly from 14.57% a week earlier, while Paladin, in thirteenth position, is largely unchanged at 10.78%, up slightly from 10.47% in the prior week.
For more reading on U308 at FNArena see:
https://fnarena.com/index.php/2026/05/26/uranium-week-structural-bull-cycle-intact/
https://fnarena.com/index.php/2026/05/19/uranium-week-paladin-trips-over-higher-costs/
https://fnarena.com/index.php/2026/05/12/uranium-week-shorts-surge-in-u308-stocks/
https://fnarena.com/index.php/2026/05/05/uranium-week-prices-rise-producers-struggle/
Uranium companies listed on the ASX:
| ASX CODE | DATE | LAST PRICE | WEEKLY % MOVE | 52WK HIGH | 52WK LOW | P/E | CONSENSUS TARGET | UPSIDE/DOWNSIDE |
|---|---|---|---|---|---|---|---|---|
| 1AE | 29/05/2026 | 0.0500 |  -18.18% | $0.16 | $0.05 | |||
| AEE | 29/05/2026 | 0.1300 | 0.00% | $0.28 | $0.11 | |||
| AGE | 29/05/2026 | 0.0400 |  2.78% | $0.06 | $0.02 | $0.070 | 75.0% | |
| AKN | 29/05/2026 | 0.0200 | 5.26% | $0.03 | $0.01 | |||
| ASN | 29/05/2026 | 0.0500 | – 8.47% | $0.13 | $0.04 | |||
| BKY | 29/05/2026 | 0.4600 | 9.52% | $0.70 | $0.37 | |||
| BMN | 29/05/2026 | 3.6200 | – 4.30% | $5.25 | $2.23 | $4.800 | 32.6% | |
| BOE | 29/05/2026 | 1.3100 | – 1.54% | $4.75 | $1.07 | 18.6 | $1.571 | 20.0% |
| BSN | 29/05/2026 | 0.0400 | 8.82% | $0.08 | $0.01 | |||
| C29 | 29/05/2026 | 0.0300 | – 6.67% | $0.04 | $0.01 | |||
| CXO | 29/05/2026 | 0.3000 | 5.36% | $0.39 | $0.08 | $0.300 | ||
| CXU | 29/05/2026 | 0.0500 | 18.60% | $0.07 | $0.01 | |||
| DEV | 29/05/2026 | 0.2000 | 13.89% | $0.28 | $0.07 | |||
| DYL | 29/05/2026 | 1.6100 | – 5.67% | $2.97 | $1.24 | -57.8 | $2.202 | 36.8% |
| EL8 | 29/05/2026 | 0.2500 | – 3.92% | $0.50 | $0.24 | |||
| HAR | 29/05/2026 | 0.1300 | -10.34% | $0.25 | $0.05 | |||
| I88 | 29/05/2026 | 0.1400 | – 5.88% | $0.76 | $0.08 | |||
| KOB | 29/05/2026 | 0.0300 | – 8.33% | $0.09 | $0.03 | |||
| LAM | 29/05/2026 | 0.6400 | -11.11% | $0.93 | $0.56 | |||
| LOT | 29/05/2026 | 0.6300 | -13.10% | $3.20 | $0.60 | $2.000 | 217.5% | |
| MEU | 29/05/2026 | 0.1000 | 4.17% | $0.19 | $0.04 | |||
| NXG | 29/05/2026 | 15.9600 | 3.87% | $20.47 | $9.25 | -122.5 | $20.367 | 27.6% |
| ORP | 29/05/2026 | 0.0700 | 3.03% | $0.08 | $0.02 | |||
| PDN | 29/05/2026 | 11.3800 | – 1.39% | $15.10 | $5.74 | -222.4 | $13.193 | 15.9% |
| PEN | 29/05/2026 | 0.3800 | 5.19% | $1.08 | $0.28 | |||
| SLX | 29/05/2026 | 5.9700 | 0.49% | $10.85 | $3.12 | |||
| TOE | 29/05/2026 | 0.5400 | 5.77% | $0.63 | $0.16 | |||
| WCN | 29/05/2026 | 0.0100 | – 7.14% | $0.03 | $0.01 |
Find out why FNArena subscribers like the service so much: “Your Feedback (Thank You)” – Warning this story contains unashamedly positive feedback on the service provided.
FNArena is proud about its track record and past achievements: Ten Years On
Click to view our Glossary of Financial Terms
CHARTS
For more info SHARE ANALYSIS: BMN - BANNERMAN ENERGY LIMITED
For more info SHARE ANALYSIS: BOE - BOSS ENERGY LIMITED
For more info SHARE ANALYSIS: DYL - DEEP YELLOW LIMITED
For more info SHARE ANALYSIS: LOT - LOTUS RESOURCES LIMITED
For more info SHARE ANALYSIS: NXG - NEXGEN ENERGY LIMITED
For more info SHARE ANALYSIS: PDN - PALADIN ENERGY LIMITED