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Uranium Week: Further Afield

Weekly Reports | Jun 27 2023

This story features AURA ENERGY LIMITED. For more info SHARE ANALYSIS: AEE

The spot uranium market was officially quiet last week as transaction levels increase just outside the spot window.

-Buyers/sellers moving beyond 90 days
-Sweden in a push for both uranium demand and supply
-Aura Energy could benefit

By Greg Peel

The spot uranium market was quiet last week. Effectively there were only two transactions concluded, as buyers lowered offer prices to attract interest. But as industry consultant TradeTech reports, both buyers and sellers continue to exhibit opportunistic behavior by stepping outside of the immediate spot delivery window of 90 days if the price is viewed as attractive.

Two transactions were concluded for October delivery, and two for December, which are classed as term market transactions. Those transactions still inform TradeTech’s weekly spot price indicator, which fell -US30c to US$56.20/lb.

TradeTech’s term price indicators remain at US$59.00/lb (mid-term) and US$55.00/lb (long).

Swedish Push

The Swedish parliament this week adopted a new energy target, which gives the new conservative government approval to advance plans to build new nuclear power plants. The new target sets a goal to have "100% fossil-free” electricity instead of “100% renewable”.

This is a key element of the government’s plan to meet forecast electricity demand by 2040 and reach net-zero emissions by 2045. The government supports new reactors that are essential for the shift to a fossil-free economy. Today, nuclear power provides about 40% of Sweden's current electricity supply.

But for those assuming a new source of uranium demand is opening up, Sweden also has aspirations on the other side of the equation.

Sweden boasts the European Union's largest uranium reserves but mining is not permitted. With new investments in nuclear power, the government wants to change the law.

Canadian-listed District Metals Corp last week reported its Swedish subsidiary has received approval for a mineral license application to explore for copper, molybdenum, zirconium, and rare earth elements in northern Sweden. The Ardnasvarre Property hosts several uranium, lead-zinc-silver, and copper mineralised occurrences.

In addition, Australian-listed Aura Energy ((AEE)) is working to enable the granting of an exploitation permit for its polymetallic Haggan Project in Sweden, which includes uranium resources.

Meanwhile, a legal challenge against the UK government’s decision to build a nuclear power plant on the Suffolk coast has been rejected.

The High Court rejected a protest group’s challenge, ruling the government’s decision was in line with the current energy policy, originally introduced by Boris Johnson, which intends to achieve “diversity of methods of generation and security of supply”.

Uranium companies listed on the ASX:

AGE 23/06/2023 0.0300 -14.63% $0.08 $0.03
BKY 23/06/2023 0.5400 10.42% $0.53 $0.25
BMN 23/06/2023 1.5600 – 5.67% $2.49 $1.19
BOE 23/06/2023 3.0500 – 4.39% $3.29 $1.73 $3.310 8.5%
DYL 23/06/2023 0.7200 – 7.69% $1.25 $0.48 $1.040 44.4%
EL8 23/06/2023 0.3000 – 3.03% $0.64 $0.27
ERA 23/06/2023 0.0300 0.00% $0.30 $0.03
LOT 23/06/2023 0.1800 0.00% $0.30 $0.15 $0.350 94.4%
NXG 23/06/2023 6.8000 – 2.16% $7.10 $0.00
PDN 23/06/2023 0.6900 – 5.48% $0.96 $0.52 -20.2 $1.097 58.9%
PEN 23/06/2023 0.1700 – 5.41% $0.21 $0.12 $0.340 100.0%
SLX 23/06/2023 3.7200 -10.84% $5.32 $1.96 $5.000 34.4%

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