Weekly Reports | Mar 26 2024
This story features BANNERMAN ENERGY LIMITED. For more info SHARE ANALYSIS: BMN
The uranium market remains in a state of uncertainty, awaiting geopolitical developments.
-Still no US sanctions of Russian uranium imports
-EU and others push nuclear power
-Spot price recovers slightly
By Greg Peel
Geopolitical news continues to dominate the uranium market.
Last week the Republic of Niger announced it intends to terminate its military cooperation agreement with the US, which has a large military base in Niger. It remains unclear if a withdrawal of US troops will be required by Niger, as the US military base is used to patrol a larger section of the Sahel region beyond Niger’s borders.
Both Global Atomic Corp and GoviEx Uranium, which each operates a uranium project in Niger, released statements indicating this action would not hinder their ongoing mining efforts.
In the US, Congress yet again passed an eleventh hour budget bill on Friday to stave off a government shutdown. The bill did not include any sanctions on US imports of Russian nuclear fuel. This leaves the nuclear fuel market unsettled, industry consultant TradeTech notes, since there remains wide bipartisan support for sanctions.
But while shipments of Russian nuclear fuel into the US have not been sanctioned, logistics with shipping and deliveries continue to present challenges for market participants.
Last week a shipment of Russian enriched uranium destined for Baltimore made a routine stop in a German port for operational issues but has not yet been given permission to depart. German authorities are holding the shipment due to the presence of plywood onboard which is used for ballast, which is on the list of products sanctioned by the EU.
These developments did bring back some buying interest in the spot uranium market early last week, although the market went quiet again towards the end of the week.
Having fallen -US$7 the week before, last week TradeTech’s weekly spot price indicator rose US$2.00 to US$88.00/lb.
Term price indicators remain at US$100/lb (mid-term) and US$75/lb (long).
EU-Plus
Brussels hosted the first-ever Nuclear Energy Summit last week as global leaders met to discuss how nuclear power can help drive sustainable development.
The Summit focused on nuclear energy, and the 34 nations, including the US, China and Saudi Arabia, committed to work to unlock the potential of nuclear energy by supporting the competitive financing of lifetime extension of existing nuclear reactors, construction of new nuclear power plants, and early deployment of advanced reactors.
The Summit follows the historic inclusion of nuclear energy in the Global Stocktake agreed at the UN Climate Conference (COP28) in Dubai in December, which called for accelerating nuclear energy’s deployment along with other low-carbon energy sources.
Bannerman Resources
Australian-listed Bannerman Resources ((BMN)) has completed a Scoping Study that has evaluated future higher throughput and operating life cases for its flagship Etango uranium project in Namibia.
Bannerman is currently advancing Front End Engineering and Design (FEED), offtake marketing, and strategic financing workstreams on its base-case 8 Mtpa Etango development, which was the subject of a Definitive Feasibility Study. Bannerman noted it remains fully committed to the timely development of Etango-8 as a standalone project.
Uranium companies listed on the ASX:
| ASX CODE | DATE | LAST PRICE | WEEKLY % MOVE | 52WK HIGH | 52WK LOW | P/E | CONSENSUS TARGET | UPSIDE/DOWNSIDE |
|---|---|---|---|---|---|---|---|---|
| 1AE | 25/03/2024 | 0.1100 |  – 8.33% |
$0.19 | $0.05 | |||
| AGE | 25/03/2024 | 0.0560 |  1.82% |
$0.08 | $0.03 | $0.100 | 78.6% |
|
| BKY | 25/03/2024 | 0.2900 | – 4.92% |
$0.80 | $0.26 | |||
| BMN | 25/03/2024 | 3.6700 | 14.69% |
$3.99 | $1.19 | $7.040 | 91.8% |
|
| BOE | 25/03/2024 | 4.9100 | 1.87% |
$6.12 | $2.21 | 101.2 | $5.697 | 16.0% |
| DYL | 25/03/2024 | 1.3650 | 11.43% |
$1.76 | $0.48 | $1.770 | 29.7% |
|
| EL8 | 25/03/2024 | 0.4800 | – 2.04% |
$0.68 | $0.27 | |||
| ERA | 25/03/2024 | 0.0590 | 20.41% |
$0.21 | $0.03 | |||
| LOT | 25/03/2024 | 0.4200 | 5.00% |
$0.44 | $0.17 | $0.610 | 45.2% |
|
| NXG | 25/03/2024 | 11.9800 | 6.49% |
$12.99 | $5.16 | $17.500 | 46.1% |
|
| PDN | 25/03/2024 | 1.4150 | 13.20% |
$1.46 | $0.52 | 409.4 | $1.513 | 6.9% |
| PEN | 25/03/2024 | 0.1150 | – 8.00% |
$0.20 | $0.08 | $0.340 | 195.7% |
|
| SLX | 25/03/2024 | 4.8300 | 5.92% |
$5.78 | $2.92 | $7.600 | 57.3% |
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