Uranium Week: Further Afield

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The spot uranium market was officially quiet last week as transaction levels increase just outside the spot window.

-Buyers/sellers moving beyond 90 days
-Sweden in a push for both uranium demand and supply
-Aura Energy could benefit

By Greg Peel

The spot uranium market was quiet last week. Effectively there were only two transactions concluded, as buyers lowered offer prices to attract interest. But as industry consultant TradeTech reports, both buyers and sellers continue to exhibit opportunistic behavior by stepping outside of the immediate spot delivery window of 90 days if the price is viewed as attractive.

Two transactions were concluded for October delivery, and two for December, which are classed as term market transactions. Those transactions still inform TradeTech’s weekly spot price indicator, which fell -US30c to US$56.20/lb.

TradeTech’s term price indicators remain at US$59.00/lb (mid-term) and US$55.00/lb (long).

Swedish Push

The Swedish parliament this week adopted a new energy target, which gives the new conservative government approval to advance plans to build new nuclear power plants. The new target sets a goal to have "100% fossil-free” electricity instead of “100% renewable”.

This is a key element of the government’s plan to meet forecast electricity demand by 2040 and reach net-zero emissions by 2045. The government supports new reactors that are essential for the shift to a fossil-free economy. Today, nuclear power provides about 40% of Sweden's current electricity supply.

But for those assuming a new source of uranium demand is opening up, Sweden also has aspirations on the other side of the equation.

Sweden boasts the European Union's largest uranium reserves but mining is not permitted. With new investments in nuclear power, the government wants to change the law.

Canadian-listed District Metals Corp last week reported its Swedish subsidiary has received approval for a mineral license application to explore for copper, molybdenum, zirconium, and rare earth elements in northern Sweden. The Ardnasvarre Property hosts several uranium, lead-zinc-silver, and copper mineralised occurrences.

In addition, Australian-listed Aura Energy ((AEE)) is working to enable the granting of an exploitation permit for its polymetallic Haggan Project in Sweden, which includes uranium resources.

Meanwhile, a legal challenge against the UK government’s decision to build a nuclear power plant on the Suffolk coast has been rejected.

The High Court rejected a protest group’s challenge, ruling the government’s decision was in line with the current energy policy, originally introduced by Boris Johnson, which intends to achieve “diversity of methods of generation and security of supply”.

Uranium companies listed on the ASX:

ASX CODE	DATE	LAST PRICE	WEEKLY % MOVE	52WK HIGH	52WK LOW	P/E	CONSENSUS TARGET	UPSIDE/DOWNSIDE
AGE	23/06/2023	0.0300	-14.63%	$0.08	$0.03
BKY	23/06/2023	0.5400	10.42%	$0.53	$0.25
BMN	23/06/2023	1.5600	– 5.67%	$2.49	$1.19
BOE	23/06/2023	3.0500	– 4.39%	$3.29	$1.73		$3.310	8.5%
DYL	23/06/2023	0.7200	– 7.69%	$1.25	$0.48		$1.040	44.4%
EL8	23/06/2023	0.3000	– 3.03%	$0.64	$0.27
ERA	23/06/2023	0.0300	0.00%	$0.30	$0.03
LOT	23/06/2023	0.1800	0.00%	$0.30	$0.15		$0.350	94.4%
NXG	23/06/2023	6.8000	– 2.16%	$7.10	$0.00
PDN	23/06/2023	0.6900	– 5.48%	$0.96	$0.52	-20.2	$1.097	58.9%
PEN	23/06/2023	0.1700	– 5.41%	$0.21	$0.12		$0.340	100.0%
SLX	23/06/2023	3.7200	-10.84%	$5.32	$1.96		$5.000	34.4%

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