Weekly Reports | May 16 2023
This story features PENINSULA ENERGY LIMITED. For more info SHARE ANALYSIS: PEN
A global survey has found increasing support for nuclear energy within a decarbonisation mix.
-Spot uranium market remains volatile
-Survey finds increasing support for nuclear energy
-Italy looks to jump on
-Peninsula Energy stands out
By Greg Peel
Volatility continued in the spot uranium market last week, with prices bouncing around within a range and impacted by choice of delivery location, industry consultant TradeTech reports. Four transactions totalling 540,000lbs U3O8 equivalent were reported.
TradeTech’s weekly spot price indicator rose US5c to US$5.40/lb.
No transactions were reported in term markets. TradeTech’s term price indicators remain at US$54.00/lb for both mid- and long-term.
Popular Support
Increasing optimism around the growth and acceptance of nuclear power were reiterated last week with the release of an NGO report The World Wants New Nuclear.
The report, notes TradeTech, outlines the results of a recent multinational survey of attitudes toward nuclear energy, which found widespread public support for advanced nuclear technologies in countries around the world.
The report is based on a large-scale online quantitative survey across three continents, among 13,500 members of the general public. Nationally representative samples were surveyed for each of eight nations — France, Germany, Japan, Poland, South Korea, Sweden, the UK, and US — between November 2022 and January 2023.
Support for nuclear power in the US has reached its highest level in over a decade, according to a recent Gallup poll. The survey found that 55% of adult Americans say they “strongly” or “somewhat” favour the use of nuclear energy.
While Gallup noted recent support for nuclear is less partisan due to increasing support among Democrats, who historically are less likely to support nuclear power, the US-based analytics and advisory company also identified a relationship between high oil prices and support for nuclear power.
Survey data going back to 1994 show that opposition to nuclear power peaked in 2016 with 54% “strongly” or “somewhat” opposed to its use, while support for nuclear power reached a period high of 62% in 2010.
Energia Nucleare
With that in mind, Italy’s lower house passed two motions last week designed to counter the nation’s historical anti-nuclear stance.
TradeTech reports the text of the motions commits the government to “consider including nuclear power as an alternative and clean source of energy production in the national energy mix.”
The motions received unanimous support from the governing majority.
“We will now discuss [nuclear power] with our European partners and consider, with the utmost attention, how to include it in the national energy mix in the coming decades, with the aim of achieving the decarbonisation goals set by the European Union.”
Peninsula Energy
After some delays, Shaw and Partners notes the Lance Uranium Project in the US is now back on track, with first production set for mid-2023 and first sales in the June quarter.
Capital cost estimates remain in line with the definitive feasibility study. No material changes are made to Shaw’s forecasts and the $0.34 target and Buy rating are unchanged.
The analyst points out Peninsula Energy ((PEN)) is the only ASX-listed company with direct exposure to US Government initiatives which are in favour of domestic mine development.
Uranium companies listed on the ASX:
| ASX CODE | DATE | LAST PRICE | WEEKLY % MOVE | 52WK HIGH | 52WK LOW | P/E | CONSENSUS TARGET | UPSIDE/DOWNSIDE |
|---|---|---|---|---|---|---|---|---|
| AGE | 12/05/2023 | 0.0390 |  11.43% |
$0.08 | $0.03 | |||
| BKY | 12/05/2023 | 0.3750 | 1.35% |
$0.46 | $0.25 | |||
| BMN | 12/05/2023 | 1.4650 | 5.40% |
$2.49 | $0.15 | |||
| BOE | 12/05/2023 | 2.7600 | 2.60% |
$3.03 | $1.61 | $3.310 | 19.9% |
|
| DYL | 12/05/2023 | 0.6150 | 7.89% |
$1.25 | $0.48 | $1.040 | 69.1% |
|
| EL8 | 12/05/2023 | 0.3700 | 5.71% |
$0.64 | $0.30 | |||
| ERA | 12/05/2023 | 0.0330 |  -15.38% |
$0.31 | $0.03 | |||
| LOT | 12/05/2023 | 0.2050 | 7.89% |
$0.30 | $0.15 | $0.350 | 70.7% |
|
| NXG | 12/05/2023 | 5.9300 | 2.60% |
$7.51 | $0.00 | |||
| PDN | 12/05/2023 | 0.6650 | 1.53% |
$0.96 | $0.53 | -19.6 | $1.097 | 64.9% |
| PEN | 12/05/2023 | 0.1550 | 0.00% | $0.22 | $0.12 | $0.340 | 119.4% |
|
| SLX | 12/05/2023 | 3.6700 | 7.31% |
$5.32 | $1.22 | $5.000 | 36.2% |
Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.
FNArena is proud about its track record and past achievements: Ten Years On
Click to view our Glossary of Financial Terms
CHARTS
For more info SHARE ANALYSIS: PEN - PENINSULA ENERGY LIMITED
