Weekly Reports | 10:45 AM
This story features BOSS ENERGY LIMITED, and other companies.
For more info SHARE ANALYSIS: BOE
The company is included in ASX300 and ALL-ORDS
Citi joins the ranks of brokers calling for an U308 spot price above US$100/lb as producers are hit with supply constraints and elevated sulphuric acid prices.
- U308 production outlook cut for 2026-2027 as headwinds bite across major producers
- Demand continues to rise for nuclear power generation
- Short interests load up on Lotus Resources
By Danielle Ecuyer
Wet weather, electrical faults and sulphuric acid challenges
Citi has reiterated its “tactical” bullish view on uranium with an expectation U308 spot prices will trade above US$100/lb over the next three months.
Higher prices are expected to be supported by positive tailwinds from both demand and supply-side dynamics.
Citi’s commodities team has lowered 2026-2027 U308 supply forecasts by -3mlbs to -4mlbs due to lower than previously anticipated production outlooks from Australia, Africa, Canada and Kazakhstan.
Boss Energy’s ((BOE)) Honeymoon production has been lowered to 1.4mlbs from 1.8mlbs due to weather impacts.
The Kayelekera mine in Malawi, majority owned by Lotus Resources ((LOT)), stopped operations for two weeks due to a fire which impacted electrical panels. The mine also relies on Middle East sulphuric acid supplies, which have been disrupted. The expected production forecast has been lowered to 1.35mlbs this year.
Cameco’s McArthur River mine in Canada has experienced flood-related issues and the broker has cut its expected output by -2mlbs. The mine represents around 10% of global production capacity and, while production has been restored, it was shut down for almost four weeks.
Challenges around sulphuric acid supplies are flagged to impact some of the more geographically distant Kazakhstan mines, which Citi believes will be challenged to increase production. The total Kazakhstan output forecast has been reduced by around -1.5mlbs.
Regarding sulphuric acid, the analyst observes around 47% of the world’s supply was moved through the Strait of Hormuz in 2025 and around 40% of sulphuric acid is used by the mining sector.
Determining the reliance of the uranium sector on sulphuric acid is difficult, as much of the usage depends on the uranium grade for each mine and other inputs such as the leaching process, Citi points out.
Nevertheless, the price of sulphuric acid has risen 60% against the period prior to the start of the US/Iran war.
Citi sees U308 mine production rising to 203.7mlbs by 2030 from 174.7mlbs.
Turning to the demand outlook, the broker forecasts 51 nuclear reactors will be constructed between now and 2030, including 29 in China, with India, Bangladesh, Russia, France, South Korea, Turkey, the US, Slovakia and Egypt also expanding nuclear energy capacity.
Citi forecasts nuclear energy capacity to be boosted by 45GWe of power by 2030 from 415GWe capacity in 2026. Over the next 10 years, nuclear energy capacity has the potential to grow by 40%.
The geopolitical impacts of the Middle East war have challenged the security of global energy markets with potential positive impacts on the nuclear energy industry.
Big Tech’s rapacious demand for energy across the hyperscaler and data centre build-out is also boosting demand for nuclear energy in the US.
Noting spot U308 prices have been trading in a range between US$83/lb and US$87/lb, the current long-term U308 price (US$93/lb) has almost achieved its all-time high registered in 2007/2008 of US$95/lb, when the spot price peaked at US$136/US$138lb.
Volumes on the spot market have been relatively “light” thus far in 2026, Citi remarks, with speculators responsible for around 30%-40% of total transacted quantities.
The Sprott Physical Uranium Trust (SPUT) has acquired 7mlbs year-to-date and has the capacity to acquire a further 2mlbs.
Citi believes activity will increase substantially in H2 this year, pointing to the World Nuclear Fuel Market and World Nuclear Association conferences.
What happened in the week that was for U308
Industry consultants TradeTech highlight a US$1/lb lift in the spot price, last seen at US$86/lb, with three transactions conducted.
Over the last two weeks, the U308 spot price is up 1.8%, 4.9% year-to-date, and up 20.3% from the prior year.
Discussion at the World Nuclear Fuel Market (WNFM) conference reinforced growing confidence in the long-term outlook for nuclear energy, with industry participants broadly agreeing increasing electrification will require a significant expansion of nuclear power generation, TradeTech explains.
Delegates emphasised the need to strengthen the nuclear fuel supply chain through faster permitting and licensing processes, policy support, funding and investment in new fuel production capacity.
TradeTech noted confidence among utilities has improved markedly, with buyers increasingly looking beyond near-term requirements and seeking uranium supplies across the mid-term, long-term and even post-2035 periods.
This shift reflects greater certainty around reactor life extensions, power upgrades and new-build programs globally. Increased confidence has contributed to the rise in long-term uranium prices to their highest level since 2008.
The industry consultants highlighted no transactions or new demand appeared in the term U308 market.
The TradeTech Mid-term price indicator stands at US$87/lb and the Long-term price indicator at US$95/lb.
Short interests and what the brokers say
Short interest rose in Lotus Resources for the week to June 1, according to ASIC data. The stock is the second most shorted on the ASX, behind an ASX-listed bond issued by the Asian Development Bank.
The short position in Lotus rose 1.39% to 19.90%. Boss is in fifth position at 14% and Paladin Energy ((PDN)) in twelfth position at 10.70%. The latter two short positions were broadly unchanged over the prior week.
FNArena’s daily monitored brokers have a consensus target price on Paladin of $13.193 with five Buy-equivalent ratings, one Hold and one Sell.
Boss has a consensus target price of $1.571 with two Buy-equivalent ratings and four Hold-equivalent ratings.
Lotus has a consensus target price of $2.00 with two Buy-equivalent ratings (one ascribed Speculative) and one Hold rating.
More weekly U308 updates from FNArena:
https://fnarena.com/index.php/2026/06/02/uranium-week-u308-spot-price-slips-in-may/
https://fnarena.com/index.php/2026/05/26/uranium-week-structural-bull-cycle-intact/
https://fnarena.com/index.php/2026/05/19/uranium-week-paladin-trips-over-higher-costs/
https://fnarena.com/index.php/2026/05/12/uranium-week-shorts-surge-in-u308-stocks/
Uranium companies listed on the ASX:
| ASX CODE | DATE | LAST PRICE | WEEKLY % MOVE | 52WK HIGH | 52WK LOW | P/E | CONSENSUS TARGET | UPSIDE/DOWNSIDE |
|---|---|---|---|---|---|---|---|---|
| 1AE | 05/06/2026 | 0.0500 |  – 5.66% | $0.16 | $0.05 | |||
| AEE | 05/06/2026 | 0.1200 | 0.00% | $0.28 | $0.11 | |||
| AGE | 05/06/2026 | 0.0400 | 0.00% | $0.06 | $0.02 | $0.070 |  75.0% | |
| AKN | 05/06/2026 | 0.0200 | 20.00% | $0.03 | $0.01 | |||
| ASN | 05/06/2026 | 0.0500 | – 5.56% | $0.13 | $0.04 | |||
| BKY | 05/06/2026 | 0.4500 | – 8.25% | $0.70 | $0.37 | |||
| BMN | 05/06/2026 | 3.6400 | 0.28% | $5.25 | $2.23 | $4.800 | 31.9% | |
| BOE | 05/06/2026 | 1.2700 | – 1.92% | $4.75 | $1.07 | 18.0 | $1.571 | 23.7% |
| BSN | 05/06/2026 | 0.0300 | – 5.71% | $0.08 | $0.01 | |||
| C29 | 05/06/2026 | 0.0300 | 3.85% | $0.04 | $0.01 | |||
| CXO | 05/06/2026 | 0.2700 | -15.63% | $0.39 | $0.08 | $0.300 | 11.1% | |
| CXU | 05/06/2026 | 0.0600 | 21.28% | $0.07 | $0.01 | |||
| DEV | 05/06/2026 | 0.1900 | – 5.00% | $0.28 | $0.07 | |||
| DYL | 05/06/2026 | 1.5800 | – 1.25% | $2.97 | $1.28 | -57.1 | $2.202 | 39.4% |
| EL8 | 05/06/2026 | 0.2600 | 4.00% | $0.50 | $0.24 | |||
| HAR | 05/06/2026 | 0.1300 | 4.00% | $0.25 | $0.05 | |||
| I88 | 05/06/2026 | 0.1300 | -10.71% | $0.76 | $0.08 | |||
| KOB | 05/06/2026 | 0.0300 | 3.03% | $0.09 | $0.03 | |||
| LAM | 05/06/2026 | 0.6700 | 4.69% | $0.93 | $0.56 | |||
| LOT | 05/06/2026 | 0.5900 | – 3.28% | $3.20 | $0.58 | $2.000 | 239.0% | |
| MEU | 05/06/2026 | 0.1000 | – 4.00% | $0.19 | $0.04 | |||
| NXG | 05/06/2026 | 15.9400 | 0.25% | $20.47 | $9.66 | -122.0 | $20.367 | 27.8% |
| ORP | 05/06/2026 | 0.0700 | 7.46% | $0.08 | $0.02 | |||
| PDN | 05/06/2026 | 11.0500 | – 2.21% | $15.10 | $6.03 | -217.1 | $13.193 | 19.4% |
| PEN | 05/06/2026 | 0.3700 | – 3.90% | $1.08 | $0.28 | |||
| SLX | 05/06/2026 | 6.0400 | – 0.17% | $10.85 | $3.12 | |||
| TOE | 05/06/2026 | 0.5700 | 5.56% | $0.63 | $0.17 | |||
| WCN | 05/06/2026 | 0.0200 | 7.14% | $0.03 | $0.01 |
Find out why FNArena subscribers like the service so much: “Your Feedback (Thank You)” – Warning this story contains unashamedly positive feedback on the service provided.
FNArena is proud about its track record and past achievements: Ten Years On
Click to view our Glossary of Financial Terms
CHARTS
For more info SHARE ANALYSIS: BOE - BOSS ENERGY LIMITED
For more info SHARE ANALYSIS: LOT - LOTUS RESOURCES LIMITED
For more info SHARE ANALYSIS: PDN - PALADIN ENERGY LIMITED