Weekly Reports | Apr 16 2024
Ahead of this week’s global nuclear conference, the uranium spot price ticked higher last week as the SPUT stepped in with buying.
-SPUT buying spot uranium
-This week’s conference will focus on Kazakhstan
-US Senate launches Nuclear Caucus
By Greg Peel
The spot uranium market was quiet last week until later in the week, when the listed price of the Sprott Physical Uranium Trust moved into a premium to its net asset value, prompting the trust to purchase 100,000lbs U3O8 at US$88.00/lb.
Industry consultant TradeTech reports this prompted some action from other buyers, and by week’s end TradeTech’s weekly spot priced indicator had settled at US$90.00/lb, up US$1.25.
In term markets, utilities remain key buyers as logistical issues threaten to disrupt supply. A ship carrying Russian enriched uranium remains sequestered in Germany due to the presence of EU-sanctioned plywood on the vessel. That vessel was destined for the port of Baltimore.
But the port of Baltimore remains inaccessible until engineers can clear away the fallen bridge and reopen a channel through to port facilities. Baltimore is a major US delivery point for imported uranium.
To date the US has not sanctioned Russian imports of uranium, but last week the US Treasury issued an executive order prohibiting the import into the US of Russian copper, aluminium and nickel. Utilities remain concerned a ban on uranium must eventually follow.
TradeTech’s term market indicators remain at US$95/lb (mid-term) and US$80/lb (long).
Kazakhstan
The spot market will likely be quiet this week as market participants attend the World Nuclear Fuel Cycle conference hosted by the World Nuclear Association and the Nuclear Energy Institute in Kazakhstan.
The setting is convenient, as Kazakhstan produces some 40% of global uranium supply and Kazatomprom has been facing production issues, about which participants will be looking to seek some real time updates.
Back in February, Kazatomprom revealed it would likely miss its initial 2024 and 2025 production targets due to challenges with sulphuric acid deliveries and wellfield development. Production guidance for 2024 has been cut by -13%, with 2025 output estimates uncertain.
Kazatomprom has said it intends to place priority on “value over volume” going forward.
To make matters worse, TradeTech notes Kazakhstan has suffered from severe flooding in northwest regions of the country.
While the flooding has created a national disaster, uranium production is concentrated in remote areas of southern Kazakhstan with minimal risk of flooding, although internal infrastructure and transportation may encounter some temporary delays.
Rare Bipartisanship
Two US senators – one from each side of the aisle – launched the Senate Advanced Nuclear Caucus last week, which "will amplify the critical role nuclear energy plays in the United States, explore emerging nuclear technologies, and promote the goals and priorities of the US nuclear industry."
“Advancing the next generation of nuclear energy technology is critical to meeting US and global energy demands. The USA has a rich history of leadership in the nuclear industry, and it is crucial that we maintain this competitive edge," the senators said in a joint statement.
The launch of the caucus is supported by multiple stakeholders, including Idaho National Laboratory, the Nuclear Energy Institute, and Third Way’s Climate and Energy Program.
Uranium companies listed on the ASX:
| ASX CODE | DATE | LAST PRICE | WEEKLY % MOVE | 52WK HIGH | 52WK LOW | P/E | CONSENSUS TARGET | UPSIDE/DOWNSIDE |
|---|---|---|---|---|---|---|---|---|
| 1AE | 12/04/2024 | 0.0900 | 0.00% | $0.19 | $0.05 | |||
| AGE | 12/04/2024 | 0.0600 |  3.17% |
$0.08 | $0.03 | $0.100 | 66.7% |
|
| BKY | 12/04/2024 | 0.3200 | 21.05% |
$0.80 | $0.26 | |||
| BMN | 12/04/2024 | 4.0700 | 5.09% |
$4.16 | $1.19 | $7.040 | 73.0% |
|
| BOE | 12/04/2024 | 4.9400 | 1.21% |
$6.12 | $2.23 | 48.5 | $5.422 | 9.8% |
| DYL | 12/04/2024 | 1.4900 | 9.75% |
$1.76 | $0.48 | $1.770 | 18.8% |
|
| EL8 | 12/04/2024 | 0.5400 | 7.69% |
$0.68 | $0.27 | |||
| ERA | 12/04/2024 | 0.0500 | 0.00% | $0.08 | $0.03 | |||
| LOT | 12/04/2024 | 0.4600 | 9.52% |
$0.46 | $0.17 | $0.610 | 32.6% |
|
| NXG | 12/04/2024 | 12.5200 |  – 0.31% |
$13.66 | $5.44 | $17.500 | 39.8% |
|
| PDN | 12/04/2024 | 153.0000 | $153.00 | |||||
| PEN | 12/04/2024 | 0.1000 | -19.23% |
$0.20 | $0.08 | $0.310 | 210.0% |
|
| SLX | 12/04/2024 | 5.1900 | 2.12% |
$5.78 | $2.92 | $7.600 | 46.4% |
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