Paladin Energy Ltd (PDN.AU) saw its stock price surge by 9.01% in Monday's pre-market trading session, following news of President Trump signing four nuclear-focused executive orders that could significantly boost uranium demand in the coming years.
The executive orders, described by Jefferies as the most aggressive U.S. intervention in the nuclear energy industry in decades, aim to reform regulations at the Nuclear Regulatory Commission, accelerate advanced reactor development, and support the entire front end of the nuclear fuel cycle. These policies could lead to approximately 35 gigawatts of new nuclear capacity by 2035, with existing assets being upgraded and maintained for longer periods.
For uranium producers like Paladin Energy, the potential impact is substantial. Jefferies analyst Daniel Roden estimates that these measures could increase U3O8 demand by 10-15 million pounds per year by 2035, up from the current 40 million pounds per year. Additionally, initial core loads for new reactors could require 12-15 million pounds in the early 2030s. This projected surge in uranium demand is likely driving investor optimism towards Paladin Energy, a key player in the uranium mining sector, resulting in the significant stock price jump observed in pre-market trading.
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