Weekly Reports | Jun 20 2023
Volumes picked up but prices fell in the spot uranium market last week.
-Sellers chased down buyers
-Uranium spot price volatility subsides
-Global nuclear push continues
By Greg Peel
After weeks of little action, volumes picked up in the spot uranium market last week. Industry consultant TradeTech reports 1.1mlbs U3O8 changed hands in nine transactions.
However, this led to a fall in TradeTech’s weekly spot price indicator of -US75c to US$56.50/lb, as buyers backed off and sellers chased.
After a period of relative stability around the US$50/lb mark, the spot price has risen steadily over the last two months, which contrasts with the significant swings the spot price indicator was exhibiting a year ago. TradeTech’s implied volatility measure has declined to 27.3% from 48% a year ago.
In term uranium markets, five transactions involving delivery of material falling just outside of the spot window were reported in the mid-term market last week.
TradeTech notes that as support for nuclear power continues to gain momentum, utilities are moving forward to lock in additional supplies. Several are evaluating not only their procurement policies, but their inventory or stock building plans as well, with a mind to security of supply (ie from Russia).
TradeTech’s term price indicators remain at US$59.00/lb (mid) and US$55.00/lb (long).
US Deliveries Down
The US Energy Information Administration (EIA) released its Uranium Marketing Annual Report 2022 last week, which indicates that owners and operators of US civilian nuclear power reactors purchased 40.5mlbs U3O8 equivalent of deliveries from US and foreign suppliers during 2022, -13% less than the 2021 delivery total of 46.7mlbs.
The weighted-average price last year was 15% higher at US$39.08/lb compared to US$33.91/lb in 2021, representing the highest price since 2016.
Canada was the leader in deliveries of uranium to US nuclear power plant operators last year, with 27% of the total. Kazakhstan followed closely with 25%, while Uzbekistan and Australia rounded out the top foreign sources with 11% and 9% respectively.
There are currently bills before Congress intended to incentivise US nuclear energy, and domestic uranium production and enrichment, and subsequently to wean off Russia as the largest global supplier of enriched uranium.
L'énergie Nucléaire
The French government said last week it would contribute EUR100m to several projects related to nuclear energy, in line with President Macron’s “France 2030” investment plan, as well as his 2022 call for a “rebirth of France’s nuclear industry.”
Funds will assist with programs to train workers and boost innovation in civil nuclear projects over the next decade. One of the main objectives of France 2030 is the construction of six new nuclear power plants, which will provide 25GW in generation capacity.
Uranium companies listed on the ASX:
| ASX CODE | DATE | LAST PRICE | WEEKLY % MOVE | 52WK HIGH | 52WK LOW | P/E | CONSENSUS TARGET | UPSIDE/DOWNSIDE |
|---|---|---|---|---|---|---|---|---|
| AGE | 19/06/2023 | 0.0410 |  – 4.65% | $0.08 | $0.03 | |||
| BKY | 19/06/2023 | 0.4800 | – 6.80% | $0.53 | $0.25 | |||
| BMN | 19/06/2023 | 1.6750 | – 5.10% | $2.49 | $1.19 | |||
| BOE | 19/06/2023 | 3.1900 | – 1.85% | $3.29 | $1.61 | $3.310 |  3.8% | |
| DYL | 19/06/2023 | 0.7800 | – 3.70% | $1.25 | $0.48 | $1.040 | 33.3% | |
| EL8 | 19/06/2023 | 0.3300 | – 5.71% | $0.64 | $0.27 | |||
| ERA | 19/06/2023 | 0.0300 | – 6.25% | $0.30 | $0.03 | |||
| LOT | 19/06/2023 | 0.1800 | -10.00% | $0.30 | $0.15 | $0.350 | 94.4% | |
| NXG | 19/06/2023 | 6.9500 | 2.06% | $7.10 | $0.00 | |||
| PDN | 19/06/2023 | 0.7300 | – 3.95% | $0.96 | $0.52 | -21.4 | $1.097 | 50.2% |
| PEN | 19/06/2023 | 0.1850 | – 5.13% | $0.21 | $0.12 | $0.340 | 83.8% | |
| SLX | 19/06/2023 | 4.1500 | – 4.16% | $5.32 | $1.55 | $5.000 | 20.5% |
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