Weekly Reports | Aug 13 2024
Industry consultants TradeTech reaffirm the longer term bullish view on nuclear energy and brokers question whether its time to buy Australian uranium stocks?
-U308 transaction volumes remain subdued
-Nuclear energy demand outlook still robust
-Petra Capital's Top Picks
By Danielle Ecuyer
The U308 spot market remained becalmed over the last week with limited activity, reports industry consultant TradeTech.
Volatility in global stock markets didn't help activity levels. The spot price declined -US$0.50 to US$81.50lb and TradeTech recorded four transactions. One was conducted on Monday at US$82lb and three transactions during the middle of the week at US$81.50/lb.
The Mid-Term U308 price indicator is unchanged at US$90lb and the Long-Term Price Indicator stands at US$82lb.
TradeTech also points to the resilience in the prices, even spot, which the consultant attributes to the positive nuclear energy demand backdrop.
Holtec International is one of the latest good demand news stories with the company stating its Palisades Nuclear plant is due to re-open in 2025, post two years of ceased operations.
The plant will require approval from the US Nuclear Regulatory Commission. A decision is anticipated in August.
Generative Ai and the demand for reliable power sources for data centres is also driving demand. TradeTech highlights the CEO of Dominion Energy who announced on its earnings call it is "open" to co-locating a data centre at its Millstone Nuclear Power Plant in Connecticut.
The industry consultant also points to the Canadian push to expand nuclear generation. Ontario Power Generation is planning the development of small modular reactors at the Darlington nuclear site in conjunction with General Electric and Hitachi Nuclear Energy.
On BloombergNEF's projections, China's nuclear power capacity can surpass France's capacity and the USA by 2030. China has 30 reactors under construction.
The Australian government's decision not to renew Energy Resources of Australia's ((ERA)) license for the Jabiluka uranium mine has resulted in the company's response to sue the responsible Minister and others over the decision.
The full story is for FNArena subscribers only. To read the full story plus enjoy a free two-week trial to our service SIGN UP HERE
If you already had your free trial, why not join as a paying subscriber? CLICK HERE