Uranium Shares Heat Up As Talk Of A Russian Export Ban Resurfaces

Uranium continues to rise after last month’s hint from Russia president Vladimir Putin that he might apply an embargo on exports to the west.

That suggestion jolted the uranium market which had been sliding lower after hitting an 18-year high of $106 a pound in February.

But since dipping down to $78/lb the nuclear fuel has traded up to $83.50/lb as investment banks revive research into possible Russian cuts to shipments of minerals of which Russia is a major supplier, including nickel, platinum, and uranium.

The uranium price rise has had a disproportionate effect on the share prices of uranium producers and companies exploring for the material.

Australian listed Boss Energy which has just started production at its Honeymoon project in South Australia has seen its shares rise by 31% over the past month. Explorers Paladin and Deep Yellow are up 32% and 38% respectively.

In London that share price of Yellow Cake, a buy and hold uranium fund, has risen by 9% over the past month.

Citi, in a note to clients earlier this week said power utilities have been stockpiling Russian uranium for the past two years but if an embargo was applied the flow of metal would still be “hard to replace” in the next two to three years.

“Russia supplies close to 12% of U3O8 (known as yellow cake), 25% of UF6 (uranium hexafluoride) and 35% of EUP (enriched uranium product) to international markets,” the bank said.

https://www.forbes.com/sites/timtreadgold/2024/10/11/uranium-shares-heat-up-as-talk-of-a--russian-export-ban-resurfaces/