Uranium Week: Market Stalled

This story features PALADIN ENERGY LIMITED, and other companies. For more info SHARE ANALYSIS: PDN

By Greg Peel

Shikoku Electric’s Ikata unit three last week became the fifth Japanese reactor at the third plant to obtain regulatory approval for restart. While regulatory approval is a big step, Shikoku must still complete a number of additional measures and obtain local consent before restarting the unit. The company hopes to be up and running by the northern winter.

At this stage, Kyushu Power’s Sendai units remain on track to be the first reactors to be restarted since 2011, with next month still the goal.

The news from Japan was one small highlight in what was otherwise a very quiet week in uranium markets. Activity in the spot market remains exceptionally slow, industry consultant TradeTech reports, with buyers mostly more interested in acquiring material for delivery later in the year or next year, and sellers holding off until the quiet northern summer season comes to an end.

TradeTech reports five transactions in the spot market last week totalling 500,000lbs of U3O8 equivalent. The consultant’s weekly price indicator remains unchanged for the second week running, at US$36.25/lb.

Two transactions were reported in the term market last week, totalling 1mlbs of U3O8 equivalent. TradeTech’s term price indicators remain unchanged at US$39.50/lb (mid) and US$46.00/lb (long).

Things are looking a bit brighter for Australian uranium producer Paladin Energy ((PDN)). Having struggled for some time with debt issues in a low uranium price environment, the company posted a 340% revenue increase in the June quarter from the March quarter, selling 1mlbs of U3O8 at an average US$41.50/lb. Production at Paladin’s flagship Langer Heinrich mine in Namibia increased by 8% over the quarter.

Meanwhile in the wake of Energy Resources of Australia’s ((ERA)) decision to mothball its Ranger Deeps 3 project in the Northern Territory, the traditional owners of the land have challenged the federal government to guarantee that no further uranium mining will ever occur on ERA’s Ranger and Jabiluka leases, and to prepare the sites for inclusion into the Kakadu National Park.

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