Weekly Reports | Aug 20 2024
This story features PALADIN ENERGY LIMITED, and other companies. For more info SHARE ANALYSIS: PDN
Share prices are weak and short positions on the rise ahead of Kazatomprom’s market update.
-Spot uranium relatively quiet
-Ai and semiconductors add to positive industry outlook
-Short positions on the rise for Aussie uranium stocks
By Danielle Ecuyer
August is proving to be a quiet market for the spot uranium market, with industry consultants TradeTech describing it as “exceptionally quiet” but not bereft of activity.
Six spot price transactions took place last week which brought forth some U308 price volatility. The TradeTech spot price indicator fell below US$80.90lb from US$81.50lb on Wednesday, before recovering to US$81lb by Thursday.
According to the industry consultants, sellers were keen to capitalise on any buying opportunities.
The TradeTech Mid-Term U308 Price Indicator stands at US$90lb and the Long-Term U308 price indicator at US$82lb.
The longer-term prospects for nuclear generation power remain robust, with TradeTech pointing to the hyperscalers, Amazon, Google and Microsoft continuing to evaluate and consider using nuclear energy.
Japan is also looking at re-starting its nuclear reactors in a move intended to support the development of its involvement in artificial intelligence and semi-conductors.
Despite the attractive longer-term demand drivers for nuclear energy and uranium, the shorters have continued to raise their short positions in some of Australia most traded uranium stocks. It would appear they are taking the lead from the near-term weakness in the U308 spot price.
From July 12 to August 12, short positions as a percentage of issued capital have advanced to 8.93% from 4.58% for Paladin Energy ((PDN)); to 8.48% from 7.4% for Boss Energy ((BOE)); 5.12% from 3.06% for Lotus Resources ((LOT)) and 7.93% from 5.74% for Deep Yellow ((DYL)).
Share prices remain under pressure with Paladin ascribed an average target price of $16.088 from FNArena’s daily monitored brokers, some 62.5% above current level ($9.995) backed by four positive ratings.
Boss’s average target price sits 72% higher at $5.013 backed by two positive ratings and two on Neutral/Hold.
FNArena’s The Short Report: https://fnarena.com/index.php/analysis-data/the-short-report/
The market looks to be positioning ahead of Kazatomprom’s FY25 guidance update which is expected on August 23. The company reported better-than-feared results on August 1 and upgraded its FY24 outlook because of improved sulfuric acid supplies.
All eyes will be focused on the world’s largest uranium producer for supply side indicators and any potential U308 price impacts.
Uranium companies listed on the ASX:
| ASX CODE | DATE | LAST PRICE | WEEKLY % MOVE | 52WK HIGH | 52WK LOW | P/E | CONSENSUS TARGET | UPSIDE/DOWNSIDE |
|---|---|---|---|---|---|---|---|---|
| 1AE | 16/08/2024 | 0.0600 | 0.00% | $0.19 | $0.06 | |||
| AEE | 16/08/2024 | 0.1300 | 0.00% | $0.36 | $0.12 | |||
| AGE | 16/08/2024 | 0.0400 |  13.51% |
$0.08 | $0.03 | $0.100 | 150.0% |
|
| AKN | 16/08/2024 | 0.0100 | 0.00% | $0.07 | $0.01 | |||
| ASN | 16/08/2024 | 0.1000 |  – 4.00% |
$0.20 | $0.07 | |||
| BKY | 16/08/2024 | 0.3250 | 8.33% |
$0.46 | $0.26 | |||
| BMN | 16/08/2024 | 2.3700 | 0.00% | $4.87 | $1.86 | $7.400 | 212.2% |
|
| BOE | 16/08/2024 | 2.9100 | 4.08% |
$6.12 | $2.87 | 31.7 | $5.013 | 72.3% |
| BSN | 16/08/2024 | 0.0390 | – 2.50% |
$0.21 | $0.04 | |||
| C29 | 16/08/2024 | 0.0800 | 0.00% | $0.12 | $0.06 | |||
| CXO | 16/08/2024 | 0.0930 | 3.33% |
$0.45 | $0.08 | $0.093 | 0.4% |
|
| CXU | 16/08/2024 | 0.0200 | 0.00% | $0.06 | $0.01 | |||
| DEV | 16/08/2024 | 0.2000 | – 7.14% |
$0.45 | $0.19 | |||
| DYL | 16/08/2024 | 1.0100 | 7.65% |
$1.83 | $0.85 | -75.4 | $1.770 | 75.2% |
| EL8 | 16/08/2024 | 0.3100 | 6.67% |
$0.68 | $0.26 | |||
| ERA | 16/08/2024 | 0.0200 | -15.00% |
$0.08 | $0.01 | |||
| GLA | 16/08/2024 | 0.0100 | 0.00% | $0.04 | $0.01 | |||
| GTR | 16/08/2024 | 0.0030 | 0.00% | $0.02 | $0.00 | |||
| GUE | 16/08/2024 | 0.0500 | 0.00% | $0.18 | $0.05 | |||
| HAR | 16/08/2024 | 0.0500 | -16.67% |
$0.28 | $0.05 | |||
| I88 | 16/08/2024 | 0.6200 | 10.34% |
$1.03 | $0.14 | |||
| KOB | 16/08/2024 | 0.1400 | 27.27% |
$0.17 | $0.06 | |||
| LAM | 16/08/2024 | 0.5600 | 0.00% | $1.04 | $0.51 | |||
| LOT | 16/08/2024 | 0.2400 | 4.17% |
$0.49 | $0.20 | $0.685 | 185.4% |
|
| MEU | 16/08/2024 | 0.0400 | 0.00% | $0.06 | $0.03 | |||
| NXG | 16/08/2024 | 8.9900 | 5.41% |
$13.66 | $7.78 | $16.200 | 80.2% |
|
| ORP | 16/08/2024 | 0.0500 | 0.00% | $0.12 | $0.05 | |||
| PDN | 16/08/2024 | 9.9000 | 4.06% |
$17.98 | $8.10 | -82.7 | $16.088 | 62.5% |
| PEN | 16/08/2024 | 0.0900 | 1.11% |
$0.15 | $0.08 | 30.0 | $0.260 | 188.9% |
| PNX | 16/08/2024 | 0.0040 | 0.00% | $0.01 | $0.00 | |||
| SLX | 16/08/2024 | 3.8800 | – 1.16% |
$6.74 | $2.93 | $7.600 | 95.9% |
|
| TOE | 16/08/2024 | 0.2800 | 3.57% |
$0.70 | $0.01 | |||
| WCN | 16/08/2024 | 0.0200 | 17.65% |
$0.02 | $0.01 |
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CHARTS
For more info SHARE ANALYSIS: BOE - BOSS ENERGY LIMITED
For more info SHARE ANALYSIS: DYL - DEEP YELLOW LIMITED
For more info SHARE ANALYSIS: LOT - LOTUS RESOURCES LIMITED
For more info SHARE ANALYSIS: PDN - PALADIN ENERGY LIMITED