Cameco, uranium names surge as U.S. set to offer up to $3.4B in funding
Uranium producers including Cameco (NYSE:CCJ) and Denison Mines (DNN) are surging Friday following news that the U.S. government will ask companies to bid next month on contracts for as much as $3.4B of domestically produced nuclear reactor fuel.Cameco (CCJ) +6.1% and Denison Mines (DNN) +7.4% to new multiyear highs; also, Energy Fuels (UUUU) +7.3%, Centrus Energy (LEU) +7%, Uranium Energy (UEC) +6%, Fission Uranium (OTCQX:FCUUF) +6%, NexGen Energy (NXE) +5.1%, Nuscale Power (SMR) +4.3%, Ur-Energy (URG) +4.3%, Uranium Royalty (UROY) +3.4%.ETFs: (URA), (NLR), (URNM)Earlier this week, President Biden signed a ban on imports of enriched uranium from Russia, which provides ~25% of the reactor fuel in the U.S.; the ban takes effect August 11.The signing unlocks ~$2.7B in funding in previous legislation to build out the U.S. uranium fuel industry.Centrus Energy (LEU), which currently obtains the majority of its uranium from Russia, is among the companies that has said it will compete for the funding.Other potential beneficiaries from the spending include ConverDyn, a joint venture between Honeywell (HON) and General Atomics that provides uranium conversion services, and Global Laser Enrichment, jointly owned by Silex Systems LTD and Cameco (CCJ).
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