Weekly Reports | Jul 25 2023
Bills banning Russian enriched uranium imports in the US have the market concerned over availability of supply.
-Market watching progress of bills through Congress
-Concern over ex-Russian enrichment capacity
-UK introduces Great British Nuclear
By Greg Peel
Uranium market participants gathered in Washington DC last week for the Nuclear Energy Institute’s Nuclear Fuel Supply Forum. Typically when participants gather for such events, the market goes quiet, but they are also an opportunity to talk the market up.
As it was, a total of 500,000lbs U3O8 changed hands in the uranium spot market last week and another 800,000lbs was purchased for delivery at the end of the year or early next year, industry consultant TradeTech reports. Sellers were unwilling to lower prices.
TradeTechs’ weekly spot price indicator rose US35c to US$56.20/lb.
TradeTech’s term price indicators remain at US$58.50/lb (mid-term) and US$56.00/lb (long).
At the NEI meeting, attendees sought clarity around a number of issues, including pending legislation in the US Congress.
Two bills are on their way through Congress and both similarly look to ban imports of Russia’s enriched uranium, although waivers are in place in case the US Secretary of Energy determines there is no alternative source available for operation of a commercial nuclear reactor or US nuclear energy company, or if the shipments are of national interest.
At the end of last week, market participants were also closely watching developments in Ukraine around reports from Reuters that Russia may attack civilian shipping in the Black Sea as it seeks to stop grain shipments from Ukraine.
Another bill is intended to preserve existing US nuclear capacity and advance new nuclear technologies.
Converted
In the conversion market, Honeywell’s Metropolis Works Facility in the US has successfully restarted operations, TradeTech reports. The plant, which encountered delays in start-up due to unexpected weather conditions in the spring and operational difficulties in June, is now on track to resume full production.
In spite of the restart, uncommitted capacity within the US conversion sector remains insufficient to absorb any delivery shocks, and an interruption of supplies of Russian enriched uranium product would certainly impact the conversion market and amplify any deficits in the supply chain, TradeTech notes.
The potential for legislative sanctions against Russian nuclear fuel in the US and EU adds to questions surrounding the adequacy of current conversion production capacity.
The Race Is On
As the US pushes to become its own self-sufficient nuclear powerhouse, the UK Energy Security Secretary last week launched Great British Nuclear, in an effort to drive the rapid expansion of new nuclear power plants in the nation.
"This will boost UK energy security, reduce dependence on volatile fossil fuel imports, create more affordable power, and grow the economy, with the nuclear industry estimated to generate around 6 billion pounds. for the UK economy," the minister said in a statement.
The initiative could result in billions of pounds of public and private sector investment in small modular reactor projects in the UK.
Uranium companies listed on the ASX:
| ASX CODE | DATE | LAST PRICE | WEEKLY % MOVE | 52WK HIGH | 52WK LOW | P/E | CONSENSUS TARGET | UPSIDE/DOWNSIDE |
|---|---|---|---|---|---|---|---|---|
| AGE | 21/07/2023 | 0.0300 |  – 2.78% |
$0.08 | $0.03 | |||
| BKY | 21/07/2023 | 0.4900 | – 1.43% |
$0.80 | $0.25 | |||
| BMN | 21/07/2023 | 1.5900 |  2.26% |
$2.49 | $1.19 | $3.200 | 101.3% |
|
| BOE | 21/07/2023 | 2.9300 | – 3.91% |
$3.29 | $1.96 | $3.440 | 17.4% |
|
| DYL | 21/07/2023 | 0.6900 | – 2.86% |
$1.25 | $0.48 | $1.040 | 50.7% |
|
| EL8 | 21/07/2023 | 0.3000 | – 3.23% |
$0.64 | $0.27 | |||
| ERA | 21/07/2023 | 0.0400 | 25.71% |
$0.30 | $0.03 | |||
| LOT | 21/07/2023 | 0.1900 | – 2.50% |
$0.30 | $0.15 | $0.530 | 178.9% |
|
| NXG | 21/07/2023 | 7.0000 | 3.70% |
$7.21 | $0.00 | |||
| PDN | 21/07/2023 | 0.7600 | – 2.63% |
$0.96 | $0.52 | -22.3 | $1.080 | 42.1% |
| PEN | 21/07/2023 | 0.1100 | -38.89% |
$0.21 | $0.11 | $0.310 | 181.8% |
|
| SLX | 21/07/2023 | 3.6400 | – 3.74% |
$5.32 | $2.56 | $5.800 | 59.3% |
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