ASX listed uranium mining stocks headed toward bull territory Monday after weekend developments indicated significant supply shortages ahead. Meanwhile, the geopolitical and energy demand outlook buoyed investors.
ASX Uranium Stocks Surge
ASX uranium majors such as Paladin Energy (ASX: PDN +7%), Deep Yellow Limited (ASX: DYL + 7%) and Boss Energy (ASX: BOE +9%) all surged during the trading day.
The biggest uranium mining company gainers on the ASX were ASX:EEL, +50%, ASX:TOE +18%, ASX:CXU +16%, ASX:ACB +15%, ASX:GTR +14%
The spark was lit before the open.
Canadian uranium giant Cameco announced Sunday local time that it was downgrading output forecasts for its majority-controlled Cigar Lake and McArthur River/Key Lake mines in Saskatchewan.
In a statement to the market, Cameco said production from Cigar Lake would drop off, from 18 million to 16.3 million pounds of uranium concentrate (U3O8).
Production at the nearby McArthur River Uranium Mine would also fall by 1 million pounds.
The company also said it would seek to meet client needs by heading into the market to find extra supply.
The news means the uranium market is short at least 2.7 million pounds this year, amid a tightening marketplace and a general positive macro environment for the critical mineral to power growing nuclear industries globally.
Niger Situation
Meanwhile, the situation in Niger, home to several major uranium mines continued to deteriorate, as the coup situation there dragged on.
Thousands of protestors backed by the coup leaders were gathered outside a French military base, demanding Paris order 1,500 soldiers and the French ambassador to leave the country.
Niger is home to about 5% of global uranium, and one listed uranium exploration company with local prospects, Global Atomic Corp (TSX: GLO), dropped some 50% after the coup earlier this year.
French firm Orano is a major operator in the region, operating two mines at Arlit in northern Niger while developing the Imouraren project nearby.
The French government, US, EU and African diplomats have been working to try and resolve the situation, so far to no avail. It remains to be seen if there will be a military intervention in the country or not.
We explored the situation on this website earlier this year.
Meanwhile, governments around the world continue to pile into new nuclear energy projects.
Japan is bringing back its nuclear power after a decades-long hiatus. From China to the UAE, Saudi Arabia and Sweden to Poland, Canada and UK – governments are spending billions on new nuclear power projects.
