Uranium market activity continues to generate an influx of interest – particularly as governments around the world come to realize the full potential and benefits of nuclear power – and investors are paying attention.
In this feature, The Market Online dives into trends in the uranium space – including spot price updates, industry news and companies that have generated intrigue over a weekly period.
Highlights from the week include:
- a decrease in uranium spot prices
- Iran increasing its uranium stockpile
- companies reporting drilling results and initiating drilling programs
Uranium spot price update
As of the time of this writing on Wednesday, the uranium spot price sits at US$90.55, according to data from Business Insider, and is down 0.43 per cent from last week’s market update. Year-to-date, spot uranium prices are still up 1.8 per cent.
As such, global uranium supply production is expected to grow by 11.70 per cent to reach more than 60.3 kilotonnes this year alone, according to Global Data.
Industry news
All eyes this week have been on Iran as it has been reported that the country continues to increase its stockpile “to near weapons-grade levels.”
According to The Associated Press, Iran seeks to have economic sanctions imposed over its nuclear program lifted in exchange for slowing down the program.
The program is under the guidance of Iran’s leader Ayatollah Ali Khamenei.
It is estimated that as of May 11, Iran has 142.1 kilograms of uranium enriched up to 60 per cent which is an increase of 45.5 pounds since the last report from the U.N. watchdog in February, AP reported.
Meanwhile, Australian mining company Berkeley Energia is seeking US$1 billion in compensation in Spain through its subsidiary after being denied approval for its flagship uranium project.
The Retortillo project, which is the company’s flagship project, first received preliminary approval back in 2013. However, Spain’s Energy Ministery then refused the project’s approval in 2021 and again in 2023.
Uranium companies in the spotlight
CanAlaska Uranium (TSXV:CVV) revealed on Wednesday assay results that confirmed high-grade uranium at the Pike Zone on the West McArthur venture project in the eastern Athabasca Basin.
The West McArthur project is held through a joint venture with Cameco and is operated by CanAlaska, which holds 83.35 per cent ownership in the project
Over a five-day trading period, shares of CanAlaska Uranium are up 3.28 per cent to close at C$0.63 on Wednesday.
Azincourt Energy (TSXV:AAZ) announced on Tuesday that it had completed its winter 2024 drilling program at East Preston in the Athabasca Basin.
In a news release, the company stated the 2024 drill program consisted of 1,086 metres of drilling in four diamond drill holes.
Shares of Azincourt Energy are up 20 per cent over a five-day trading period to $0.03 as of market close on Wednesday.
Meanwhile NexGen Energy (TSX:NXE) revealed on Wednesday that it discovered high-grade uranium assays east of its Arrow deposit in the Athabasca Basin.
“Our team has assessed the geological similarities between RK-24-183 and RK-24-193 and the upper areas of Arrow, which indicates the high prospectivity of an additional mineralized system 3.5 km east of Arrow,” Leigh Curyer, CEO of NexGen Energy, said in a statement. “The growing potential of this latest discovery will drive the focus of the summer exploration program to determine the potential size and extent of mineralization. Efficient and bold testing of the overall system is the first priority.”
Shares of NexGen Energy are up 4.43 per cent over a five-day trading period to $10.84 as of market close on Wednesday.
What will top uranium headlines next week? Stay tuned!
Check out Stockhouse’s latest Thematic Insights report, “The Future of Energy.”
Join the discussion: Find out what everybody’s saying about public companies and hot topics about stocks at Stockhouse’s stock forums and message boards.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.