Why uranium stocks Basin Energy (ASX:BSN) and Alligator Energy (ASX:AGE) crashed 20% today
Nick Sundich, September 20, 2023
Although uranium has been the best performing commodity in 2023, this has not stopped Basin Energy (ASX:BSN) and Alligator Energy (ASX:AGE) experiencing share price declines on Wednesday.
With uranium getting to levels not seen since the GFC, plenty of companies with mothballed projects are bringing them back online and others are exploring at prospects that appear promising. But exploration does not always pay off and it costs money either way – as shareholders of these companies found out.
What are the Best uranium stocks to invest in right now?
Check our buy/sell stock tips
Basin Energy reports drilling results
Basin Energy owns 60% of the Geikie Uranium project in Canada’s Athabasca Basin. It is conducting its maiden drilling program and reported some results to shareholders. The headline intersection was 0.5m at 0.27% uranium – something that obviously did not impress shareholders. Obviously there’s uranium there, but not that much – at least not where the company has been drilling.
Basin Energy told shareholders it would conduct a follow up drill program in the winter season. But the shares initially fell by more than 25% on Wednesday.
Alligator Energy falls too
Alligator’s news was not that bad – in fact, it may show the interest in the sector. The company raised $25.5m in capital to fund development at its Samphire Project in South Australia. The trouble is, it was conducted at a hefty discount to Friday’s closing price … – 23.5%. As a results, the shares took a hit when they started trading again on Wednesday.
Stocks Down Under Concierge is here to help you pick winning stocks!
The team at Stocks Down Under have been in the markets since the mid-90s and we have gone through many ups and downs. We have written about every sector!
Our Concierge BUY and SELL service picks the best stocks on ASX. We won’t just tell you what to buy – we give you a buy range, price target and stop loss level in order to maximise total returns. And we will only recommend very high conviction stocks where substantial due diligence has been conducted.
Our performance is well ahead of the ASX200 and All Ords.
You can try out Concierge…for FREE.
GET A FREE TRIAL TO CONCIERGE TODAY
There’s no credit card needed – the trial expires automatically.
Blog Categories
Get Our Top 5 ASX Stocks for FY25
Recent Posts
Telix Pharmaceuticals (ASX:TLX): It’s made ~A$1.7bn in revenue from Illucix, but here’s why the best is yet to come!
What would you have thought if you were told 5 years ago you would see Telix Pharmaceuticals as a successful…
Anti Woke ETFs: Do they practice what they preach and have they outperformed since Trump’s return to power?
Have you ever heard of so-called ‘Anti Woke ETFs’? If you’re sick of companies that are big on ESG, this…
Trump’s Tariffs Are Back in the News—What’s the Impact on Global Supply Chains?
In recent months, the conversation around trade tariffs has re-emerged, with former President Donald Trump’s trade policies making headlines once…