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:
- an increase in uranium spot prices
- updates on the Russian uranium ban
- 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$92.15 per pound, according to Business Insider, and is up 0.72 per cent since last week’s market update and is up 2.6 per cent over a one-month basis.
Impacting uranium spot price is, of course, the demand for nuclear power and the global supply of uranium.
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
After U.S. President Joe Biden signing into law H.R.1042, the Prohibiting Russian Uranium Imports Act, it was reported by Bloomberg that Russia’s state supplier of uranium, Techsnabexport sent a notice of force majeure to its U.S. customers.
“The force majeure notice seen by Bloomberg was sent to utilities including Constellation Energy Corp, the largest U.S. nuclear plant operator, Duke Energy Corp. and Dominion Energy Inc., according to a person familiar with the matter who wasn’t authorized to speak publicly. Constellation declined to comment and Duke and Dominion didn’t respond to a request seeking comment,” according to Bloomberg.
Bloomberg reported that Tenex notified its customers it has 60 days to lock down a waiver exempting it from the recent law passed by President Biden.
Despite the recent ban on the Russian supply of uranium, on Tuesday the largest uranium-focused exchange-traded fund, Global X Uranium, was on pace to reach its highest levels since April 2014. With roughly US$3 billion in assets under management, the fund was up for six consecutive trading sessions.
Uranium companies in the spotlight
Canadian junior Madison Metals (CSE:GREN) announced on Wednesday that it had begun its maiden 2024 drill program at the Khan Project in Namibia’s highly prospective Erongo uranium province.
Shares of Madison Metals are up 13.33 per cent since trading on Tuesday to C$0.34 as of market close on Wednesday.
Forum Energy (TSXV:FMC) revealed on Tuesday that it is gearing up to begin a 10,000-metre drill program at the Aberdeen Uranium Project in Nunavut.
In a news release, the company stated follow-up drilling will focus on building a resource identified by four holes drilled over a 200-metre strike length into the Tatiggaq deposit in 2023.
Shares of Forum Energy are up 3.85 per cent since the start of the weekly trading session to $0.14 as of market close on Wednesday.
Finally, uranium giant Cameco (TSX:CCO) announced a private placement valued at $500 million that is expected to close on Friday. Cameco intends to use the net proceeds to retire all of its outstanding 4.19 per cent Senior Unsecured Debentures, Series G at or prior to the maturity date of June 24.
“In a market where we believe the demand for secure and carbon-free nuclear electricity generation and the fuel required to run reactors is stronger and more durable than ever, Cameco is well-positioned for disciplined and sustainable growth, while maintaining the ability to self-manage risk,” Grant Isaac, executive vice president and CFO of Cameco, said in a statement.
Cameco shares are down 3.68 per cent to $71.39 as of market close on Wednesday.
What will top uranium headlines next week? Stay tuned!
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