Weekly Reports | 4:29 PM
A general retreat in global risk appetite frustrated uranium sellers into lower prices last week.
By Rudi Filapek-Vandyck
TradeTech's weekly U3O8 spot price lost another -US$2.80 to US$82.70/lb last week as global turbulence gripped financial markets.
The industry consultant registered four spot transactions, while term markets remained quiet as a mouse (so to speak).
Friday's new price is still 0.9% higher than at the start of the calendar year, and up 29% from a year ago, but down from two failed attempts to price uranium sustainably above US$100/lb.
According to TradeTech, there's no shortage of buyers' interest, in particular as every successful deal delivered a lower price, but sellers kept withdrawing from the market, in a pattern that kept repeating throughout the week.
The consultant has noted common frustration among sellers and investors, as expectations continue to build for higher prices, but a general risk-off sentiment across financial markets is disrupting such scenario.
SPUT, you did it again!
One indicator that is closely watched by market participants is the share price of the Sprott Physical Uranium Trust (SPUT), widely regarded as a proxy for spot uranium demand.
As global turmoil hit equity markets, the SPUT share price was hit too, which, TradeTech suggests, impacted on overall appetite to conclude transactions in the spot uranium market.
SPUT reportedly holds 79.9m pounds U3O8 and $108.7m in cash.
Against this backdrop, Arizona Public Service has officially notified the US Nuclear Regulatory Commission of its intent to renew the operating licenses for all three units at Palo Verde Generating Station, which could extend operations from the mid-2040s through the mid-2060s.
Palo Verde, TradeTech explains, is the largest power generator in the western USA.
The US and Japan announced a joint US$40bn project to build small modular reactors in US states Tennessee and Alabama.
TradeTech's Mid-Term price indicator currently stands at US$88/lb, and it's Long-Term indicator at US$90/lb.
Fresh Research
Stockbrokers issued freshly updated research on multiple ASX-listed uranium companies during the week past, including for Boss Energy ((BOE)), NexGen Energy ((NXG)), Paladin Energy ((PDN)), and Lotus Resources ((LOT)).
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