Uranium Week: Spot Price Retraces From Highs

Weekly Reports | Sep 28 2021

As the weekly spot uranium price has its first fall in six weeks, upward projections are made to potential growth of world nuclear capacity.

-Potential for nuclear power capacity to double by 2050
-Two ASX-listed companies in the news 
-Uranium spot price falls nearly -13% for the week

By Mark Woodruff

For the first time since Fukushima a decade ago, the International Atomic Energy Agency (IAEA) has revised up its projections for the potential growth of world nuclear power capacity in the coming decades. 

Under the bullish scenario, the IAEA now expects capacity to double to 792GW by 2050. Reaching that goal would require significant effort, including an accelerated implementation of innovative nuclear technologies. Compared with the previous year’s high case projection of 715GW by 2050, the estimate has been revised up by just over 10%.

The low case projections indicate that world nuclear capacity by 2050 would remain essentially unchanged at 392GW.

Also, the head of the IAEA also has joined with thirteen global nuclear industry CEOs to form the Group of Vienna. The aim is to advance the case for nuclear energy in addressing climate change and to advance sustainable development.

The group will support the IAEA in its mission to accelerate and enlarge the contribution of nuclear technologies to meeting environmental, social, and economic objectives and to improve the health and well-being of the population.

Company news

Canadian-focused ASX-listed exploration company 92 Energy ((92E)) last week announced the discovery of a new zone of uranium mineralisation on its 100% owned Gemini Project in the Athabasca Basin, Saskatchewan.

The Athabasca Basin has some of the largest and highest grade uranium deposits in the world, including Cameco's Cigar Lake and McArthur River mines. The company has a 100% interest in its 28 mineral claims in the area.

As mentioned in last week’s article, Shaw and Partners initiated coverage on ASX-listed Silex Systems ((SLX)) with a Buy rating and price target of $2.60. On Monday September 27, the company announced the completion of a $33m placement at $1.27 per share.

The funds will primarily be used to advance the SILEX uranium enrichment pilot demonstration project in the US. This is focused on Global Laser Enrichment, a business venture comprising Silex Systems (51%) and Cameco (49%).

Uranium pricing

TradeTech's Weekly Spot Price Indicator is down -US$6.40/lb from last week to US$44.10/lb -- a decline of nearly -13%. It’s the first fall in six weeks and equals the third-largest decline in percentage terms in the Indicator's history. 

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