-Nuclear industry celebrates a 50-year milestone
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U3O8 spot market adjusts to the softer utility demand
It seems apposite the uranium industry celebrated the 50th anniversary of the World Nuclear Fuel Market (WNFM) conference last weekend, at a time when the industry is undergoing many challenges or as the agenda suggested "Building the Jigsaw Puzzle".
Industry consultant TradeTech outlined the topics covered, including the nuclear fuel market supply and demand issues, challenges to production capacity, production costs, and supply chain constraints.
The most important aspect for utilities and other attendees remained the conditions, as outlined from the
The consensus view concluded 'waivers' would not be as hard to secure as expected, or withheld easily.
The U3O8 price declined to
Traders remained the most active in the spot market with utilities concentrating on waiver applications, reports
The spot price has declined -8% year-to-date, but remains up 53% on the same time last year, with the average 2024 spot price at
Tremendous upside growth in demand for nuclear power
A "Nuclear Renaissance Is Coming" according to
The bullish take assumes 383.5GW of new nuclear capacity will be added globally versus the current capacity of 390GW.
Maintenance is forecast to run at some
Demand for nuclear power generation will be driven by net zero emission targets as well as the GenAi development, alongside the potential location of data centres next to reactors.
Financing the investment spend is expected via green bonds, which are anticipated to become more common place and accepted by the finance industry, although nuclear is currently excluded.
The broker has an Overweight rating on
Namibian road trip cements an upbeat view on Aussie uranium stocks
The ramp up of the mine could create an increase in the revenue and costs risks above the broker's current forecasts. Operating expenses depend largely on mining contractor rates and with an expected doubling of the contractor staff for the mining phase,
The report does suggest the recent run-up in the share price suggests the stock is currently fully valued.
Longer term growth for
The stock is seen trading at a -40% discount to the broker's valuation.
Post the visit to
The analyst is looking forward to a production off-take agreement in the second half of 2024; the debt financing in the September quarter, with a final investment decision in the December quarter for
More reading:
https://fnarena.com/index.php/2024/06/04/uranium-week-preparing-for-the-nuclear-age/
https://fnarena.com/index.php/2024/05/28/uranium-week-soft-us-import-waivers/
https://fnarena.com/index.php/2024/05/14/uranium-week-us-boycott-enthusiasm-fades/
and uranium company broker updates
https://fnarena.com/index.php/financial-news/australian-broker-call-archives/?n=3AF72815-0002-7339-852F59916894CB90
Uranium companies listed on the ASX:
ASX CODE | DATE | LAST PRICE | WEEKLY % MOVE | 52WK HIGH | 52WK LOW | P/E | CONSENSUS TARGET | UPSIDE/DOWNSIDE |
---|---|---|---|---|---|---|---|---|
1AE | 0.0800 | -11.11% | ||||||
AGE | 0.0600 | - 3.39% | 66.7% | |||||
BKY | 0.3900 | 0.00% | ||||||
BMN | 4.0400 | - 1.43% | 83.2% | |||||
BOE | 4.3500 | - 0.88% | 44.4 | 24.7% | ||||
DYL | 1.5500 | - 4.57% | 14.2% | |||||
EL8 | 0.4600 | - 5.88% | ||||||
ERA | 0.0400 | - 6.67% | ||||||
LOT | 0.4000 | - 7.95% | 65.0% | |||||
NXG | 10.6900 | - 3.71% | 63.7% | |||||
PDN | 14.7300 | - 1.67% | -294.5 | 10.7% | ||||
PEN | 0.1000 | 0.00% | 160.0% | |||||
SLX | 5.5500 | - 2.21% | 36.9% |
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