In a quiet week in uranium markets, news of
-No spot transactions
-Producers tendering for supply to US government
-
By
As is typically the case, the uranium market goes quiet when one of the many industry gatherings each year is underway somewhere in the world. Last week the
And drew all interest out of the spot market.
The news last week that an exemption had been granted to the Canadian shipper waiting to load Russian enriched uranium product in
Nor are sellers much motivated to close the gap. The result was a week with no spot transactions completed.
Term markets were also quiet, with US producers focused on preparing their responses to the
All Systems Go
Last week Australian-listed
Paladin shut down
Following a recent capital raising, the company is fully funded for restart. Capital expenditure guidance has nevertheless increased by 46%, reflecting inflation pressure on supply chain costs, and the bring-forward of key utility infrastructure work packages to ensure the stable and reliable provision of water and power over the 17-year life of the mine.
The announcement by Paladin is a reflection of the many challenges the supply-side will face in meeting future demand expectations on schedule and at prices that will entice utilities to commit to purchases today,
Presently, there are only a limited number of producers that have demonstrated their ability to meet production milestones at prices that are acceptable to utilities. This is especially true for US utilities, which, in the absence of cheap Russian uranium, are seeking secure supply partners able to demonstrate their ability to meet production milestones at prices that allow the utilities to remain competitive. Producers are also suffering from inflation.
After shutting down
The Brokers
Stockbroker
Paladin also owns and operates a large global portfolio of uranium exploration and development assets, underpinned by high-grade resources, in the favourable jurisdictions of Australia and
Shaw notes Paladin is the premium and most liquid name in the (Australian-listed) sector, and it remains the broker's preferred exposure to an improving uranium market. Shaw has a Buy (High Risk) rating and
Broker
Macquarie notes the Langer Heinrich project is fully licensed, in a known uranium jurisdiction and has a near-term path to market buoyed by a positive uranium outlook. Outperform, 80c target.
At the time of writing, Paladin is trading on the ASX at 64c.
Uranium companies listed on the ASX:
ASX CODE | DATE | LAST PRICE | WEEKLY % MOVE | 52WK HIGH | 52WK LOW | P/E | CONSENSUS TARGET | UPSIDE/DOWNSIDE |
---|---|---|---|---|---|---|---|---|
BKY | 0.3500 | - 2.78% | ||||||
BMN | 0.1800 | 0.00% | ||||||
BOE | 1.9900 | - 0.51% | 30.7% | |||||
ERA | 0.2400 | 9.52% | ||||||
PDN | 0.6500 | 0.00% | -64.9 | 23.1% | ||||
PEN | 0.1700 | 6.25% | ||||||
VMY | 0.2000 | 5.56% |
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