Look at when Dutton announced the nuclear was the time FMG went south very fast on that opening day when
Dutton said he was going nuclear power.

It seems you do not read what is going on in the world.

https://www.copyright link/markets/equity-markets/investors-see-uranium-riches-if-coalition-s-nuclear-plan-takes-off-20240620-p5jnc6

Investors see uranium riches if Coalition’s nuclear plan takes off

The country’s largest uranium developer could almost triple in value if Australia relaxed its restrictive position on the controversial energy source, which is just one opportunity from the Coalition’s nuclear power strategy.

That’s the view of analysts at Morgan Stanley, who said changes to restrictions on the development of Paladin Energy’s assets in Western Australia and Queensland could push the company’s shares to as much as $32 in their most bullish outlook, much higher than the $13.58 they currently trade at.

“Nuclear power remains divisive. High construction costs – as well as concerns about waste and safety, plus political sensitivity – mean that nuclear is likely to remain a binary issue for many markets,” said Morgan Stanley’s Shannon Sinha in a note.

“Paladin’s Australia resource base [is] currently impacted by uranium mining bans in Australia, but [we] note that the political stance on this may be changing.”

Paladin’s Langer Heinrich uranium plant in Namibia is its main asset. But it has several development projects in Australia that analysts say could be worth significantly more if restrictions are lifted. Bloomberg

The Coalition this week reignited the debate over whether Australia should invest in nuclear power – outlining a plan to build seven reactors, the first by 2035 – creating excitement among local uranium investors.

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The policy shift had been expected, but nonetheless, long-time uranium bull Guy Keller, fund manager at Tribeca Investment Partners, said he was surprised by the extent of the proposed push.

“I shouldn’t have been surprised or impressed, given I’m already in the weeds of it all, but they went much further than even I thought they would,” said Mr Keller, who heads the Tribeca Nuclear Energy Opportunities Strategy.

The Coalition’s plans arrive after an unprecedented rally in global uranium stocks in the last 12 months, driven higher by falling supply from major global producers, as well as new demand from China, India, Europe and the US, which are all seeking carbon-neutral energy sources.

The resulting rally in the spot uranium price last year – which had laid stagnant since Japan’s Fukushima disaster in 2011 – has driven strong gains from ASX uranium developers, including Boss Energy and Paladin Energy.

A separate Morgan Stanley analysis found the global “nuclear renaissance” could require $US1.5 trillion ($2.25 trillion) of investment through to 2050 to build new global nuclear capacity.

“I think the real change has been global … which has made it much more politically safe,” Mr Keller said, noting bipartisan support from governments in the US and parts of Europe.

“There has been a massive, wholesale global adoption of nuclear technology and its ability to solve decarbonisation of the electricity grid, and also some very serious energy security concerns.”

That sentiment was echoed by Jock Packer, of Packer & Co, who is backing the Coalition’s nuclear proposal. “We think his plan is pretty sensible,” he said. “We’ve got a great opportunity; we’ve got great renewable energy resources and can actually build out this clean, green, base-load power.”

The Perth firm has been actively invested in the uranium space for years, but recently reinvested heavily into the fast-growing sector. “Uranium demand is increasing rapidly and Australia is just a blip in the ocean,” Mr Packer said. “Every other country in the world is pinning their ears back and buying them like there’s no tomorrow.”

But the Coalition’s plans have drawn plenty of criticism, with Labor arguing the cost and time that would be needed to build the power plants outweigh their benefits.