The uranium market 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 weekly 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.
Uranium spot price update
As of the time of this writing Thursday, the uranium spot price sits at US$91.10 per pound, according to Business Insider, and is up 1.2 per cent over a monthly basis.
On May 8, it reached a two-month high of US$94 resulting from the impact of the U.S. ban on Russian nuclear fuel. Year-to-date, the price of uranium is down 2.70 per cent from $91.65 on Jan. 2.
Uranium prices reached a 2024 high of $106.40 per pound in early February – marking a 17-year high for the commodity – and although it is down 19.30 per cent since then, it is expected it will trade at $92.84 per pound by the end of this quarter, according to Trading Economics
Industry news
With the first quarter of the year officially over – and with Q2 in full swing – the U.S. Energy Information Administration’s (EIA) latest Domestic Uranium Production Report recently revealed that production in the first quarter of the year across the country totalled 82,533 pounds.
According to the agency, production came from five facilities that each use in-situ leach methods over conventional mining and milling. Four of the facilities – Nichols Ranch, Ross, Lost Creek and Smith Ranch-Highland – are in Wyoming while the fifth facility, Rosita, is in Texas and resumed operations only in November after its last uranium production in 2008.
In total, Q1 uranium production in the United States reached its highest levels since Q1 production in 2018.
On Monday, it was revealed that U.S. President Joe Biden signed the Prohibiting Russian Uranium Imports Act, which will initiate the process of cutting U.S. ties from imported uranium supply.
In a statement from the White House, it said the move aims to strengthen the United States’ “energy and economic security by reducing – and ultimately eliminating – our reliance on Russia for civilian nuclear power.”
“This new law re-establishes America’s leadership in the nuclear sector. It will help secure our energy sector for generations to come. And – building off the unprecedented $2.72 billion in federal funding that Congress recently appropriated at the president’s request – it will jumpstart new enrichment capacity in the United States and send a clear message to industry that we are committed to long-term growth in our nuclear sector,” the statement reads.
Uranium companies in the spotlight
Over the week, Basin Uranium (CSE:NCLR) revealed it had acquired the Great Divide Basin Uranium Project in Sweetwater County, Wyoming.
The project was acquired through direct staking by the Basin Uranium and is composed of 104 unpatented mineral lode claims totalling approximately 1,880 acres in south-central Wyoming and within the Great Divide Basin.
Shares of Basin Uranium were down 8.51 per cent to C$0.43 as of market close on Thursday.
Skyharbour Resources (TSXV:SYH) announced on Thursday that its partner company, North Shore Uranium, collected multiple samples from two of the first three uranium prospects drilled at its 55,699 hectare Falcon Property in the eastern margin of the Athabasca Basin in northern Saskatchewan.
According to a statement, North Shore Uranium returned anomalous uranium values of greater than 300 parts per million (ppm) triuranium oxide (U3O8) and up to a maximum of 572 ppm U3O8. It is expected that North Shore will plan for future exploration programs at the property.
Shares of Skyharbour Resources closed at $0.42 on Thursday, down 3.49 per cent during the week.
Meanwhile NexGen Energy (TSX:NXE) revealed it had raised $224 million to fund the continued development and further exploration of its mineral properties, and for general corporate purposes.
Over the week, shares of NexGen Energy were down 3 per cent to close at $10.34 on Thursday.
What will top uranium headlines next week? Stay tuned!
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